Romania still offers a great potential in manufacturing that hold competitive and compelling technologies such as the producers of automotive component parts, electronics, other equipments, etc. Many companies in Romania serve the world's most demanding offshore customers in IT outsourcing, BPO, customer support and product R&D.
Doing Business in Romania
Types of Business
There are no specific investment approvals required for setting up a business in Romania. The procedure requires fulfilling certain legal formalities such as getting a judge’s approval, and registering with the Romanian Trade Register and the Fiscal Administration.
One of the changes brought about by Romania's transition to a market economy was the emergence of competition-related issues. Since 1997 legislation has been gradually implemented in Romania to address restrictions on competition and aid granted by the state.
Romanian citizens and companies (regardless of shareholder or management citizenship) have the free and unrestricted right to acquire and own real estate.
The Labour Code covers Romanian employees with employment contract who perform activities in Romania or abroad for a Romanian employer, as well as foreign individuals with employment contract who perform activities for a Romanian employer in Romania.
Romanian legislation allows two main categories of visas for foreigners, i.e. short-term and long-term visa, single or multiple entries.
Foreign trade regulations have been gradually liberalized since 1990 and now broadly follow the guidelines set by the EU.
Accounting & Audit
Under the Accounting Law, Romanian companies and permanent establishments in Romania of foreign companies are required to organize and conduct their own accounting, including preparation of interim and annual financial statements.
Romanian law provides for several types of instruments through which State or local authorities entrust undertaking of works, supplying of goods or services to private investors, namely by means of public procurement, public works concessions and services concessions contracts.
Currently one regulated market is operated in Romania, namely the Bucharest Stock Exchange. In addition, there are also other markets which are operated in Romania, namely RASDAQ and the Monetary and Commodities Exchange Market of Sibiu (“BMFMS”).
The Romanian Banking sector is organized into a two tier system, with the National Bank acting as the independent central bank. Commercial banks are entities which conduct business transactions mainly in the area of financing, investment and payment operations. Currently, the minimum share capital for setting up a bank is RON 37 million (approximately EUR 10 million).