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From Employee to Entrepreneur: Return Decision Annulled for a Foreign National Who Set Up a Romanian Company

November 14, 2023

5 min read

Updated September 20, 2026

From Employee to Entrepreneur: Return Decision Annulled for a Foreign National Who Set Up a Romanian Company

Our client came to Romania for a job and in the meantime set up his own company. On renewal, the Timis immigration office issued a return decision without considering the change in his situation. The court annulled it.

At a glance

Client: a third-country national, shareholder and director of his own company

Area: immigration law, residence permit for commercial activities

The problem: a return decision on renewal, with no assessment of his actual situation

Result: decision annulled in court, right of residence preserved

The facts

The client came to Romania to work as an employee. Over time his activity changed: he set up his own company and began earning his income from it.

When the residence permit came up for renewal, the authority issued a return decision based on the original ground of stay, without examining his new position as shareholder and director of an active Romanian company.

What we did

We documented the change of ground

We put the client's real situation before the court: the company incorporated, the activity carried on and the income generated, all of which supported a right of residence on commercial grounds.

We showed the measure was unlawful

The authority had applied the most severe measure automatically, without checking whether the conditions for continued residence on a different ground were met.

The outcome

The court allowed the claim and annulled the return decision, taking account of the client's particular circumstances. He remained in Romania and continued running his business.

What the file shows

The ground of stay is not fixed for good. When the situation changes, from employee to entrepreneur, the file has to be rebuilt on the new ground, and the authority must assess the current position.

Switching from one permit type to another is the riskiest moment in an immigration path. It is worth preparing well in advance, not at renewal.

Frequently asked questions

Can I switch my residence permit from employment to company shareholder or director?

Yes. You apply for a residence permit for commercial activities, with the company documents and evidence that the statutory conditions on investment and activity are met.

What do I do if I receive a return decision at renewal?

Challenge it before the court of appeal within 10 days of service. The deadline is short and decisive.

What must the company meet for a commercial activities permit?

Romanian law requires, among other things, a business plan, a minimum level of investment and job creation, depending on whether the applicant is a shareholder or an associate.

Can I stay in the country while the case is pending?

Challenging in time generally suspends enforcement of the measure, though this depends on the grounds of the decision.

When should the renewal application be filed?

At least 30 days before the permit expires. If the ground of stay has changed in the meantime, the file should be prepared considerably earlier.

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