Romania: Procedure for Obtaining a State of Emergency Certificate

Romania: Procedure for Obtaining a State of Emergency Certificate

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Companies whose business operations have been strongly affected by the state of emergency declared due to the SARS-CoV-2 pandemic will be able to receive a state of emergency certificate (CSU) to attest the connection between the state of emergency and their current situation using an emergency procedure which exempts the companies from the usual fees.

The certificates are granted only until the state of emergency has been declared to have ended in Romania and will be valid for an entire calendar year from the date of issuance.

After this period, the companies that continue to be impacted by a decrease in their business operations can submit a written application for a “force majeure certificate” to be issued by the National Chamber of Commerce and Industry of Romania and/or a county chamber of commerce and industry, according to a standard procedure.

This standard procedure will remain available for an unlimited period to any company experiencing financial difficulties directly linked to a force majeure event, regardless of its business sector, provided that it complies with the requested documentation and pays a fee of 500 EUR + VAT (payable in LEI, at the exchange rate published by the National Bank of Romania on the payment day).

Beneficiaries of CSUs

The certificate may be requested solely by companies whose main activity is in one of the following sectors:

  • transport;
  • tourism;
  • HoReCa industries;
  • event planning;
  • publicity;
  • private education and related activities;
  • the clothing, footwear and leather industry;
  • services in the public interest.

Terms and conditions of issuance

a) The company must have reported a revenue decrease of 40% or more in comparison to the same period in the previous year, attested by a balance sheet, or
b) The company must be facing financial difficulties, but can have a decrease in revenue that is less than 40% in comparison to the same period in the previous year, in which case the company must provide additional supporting documents.

Issuing Procedure and Required Documentation

The application for issuance of the CSU consists of a standard form that can be submitted online only on the website http://prevenire.gov.ro/, which will have a dedicated section. The applicant will fill in information regarding the following:

  • the company’s identification details;
  • the company’s contact details;
  • the reason for requesting the CSU;
  • the justification of this need;
  • details regarding the company’s financial statements.

The supporting documents will be uploaded online as well and will consist of:

  • certificate of registration of the company;
  • ID card of the director(s)/legal representative(s);
  • balance sheet certified for the month when the significant decrease in revenue was recorded;
  • balance sheet for the same period of the previous year;
  • affidavit of the applicant regarding the truthfulness of the statements and submitted documents, including the truthfulness of the direct connection between the revenue decrease and the state of emergency, with full details;
  • certificate of status issued by the Trade Registry;
  • power of attorney for the submitting person – if applicable.

All the documentation uploaded onto the platform will bear the electronic signature of the legal representative of the company or of his/her proxy (in this case, a power of attorney will be also uploaded).

Issuing Bodies

The CSU will be issued by the Commissions for Analysis of Applications for Issuance, operating under the subordination of the Ministry of Economy, Energy and Business Environment.

Depending on the extent of the damage, the deadline for the issuance of the electronic CSU will be:
a. 5 working days – companies recording a revenue decrease of at least 40%;
b. 20 working days – companies recording a decrease of less than 40%.

Usefulness of CSU

Obtaining a CSU can be highly beneficial for companies that comply with the conditions of issuance, as it can ease their way to tax relief offered by public administration institutions during these exceptional times. It can also support the renegotiation of running contracts (e.g. banking, leasing, supply) or justify other potential governmental benefits such as state-guaranteed loans with subsidised interest.

All the aforementioned aspects were included in a bill of order issued by the Minister of Economy, Energy and Business Environment which is to be published in the Official Gazette. Any amendments will be added to the published version. We will keep you updated on this topic.

By Cristina Stamboli, Senior Associate, and Denisa Loredana Moldovan, Associate, Noerr