Doing business

Romania

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Setting up a company | FDI in figures | Why you should choose to invest | Procedures relative to foreign investment | Finding assistance for further information

Setting up a company

Types of companies and capital (max/min)	Number of partners/shareholders and liability
Limited Liability Company At least RON 200	Minimum of 1; maximum of 50 Liability is limited to the amount of investment.
Public Company At least RON 90,000	Minimum of 2 shareholders. Liability is limited to the amount of investment.
General Partnership No capital minimum.	Minimum 2 partners: One general partner and one limited partner Unlimited liability
Limited Liability Partnership No capital minimum.	Minimum 2 partners: One general partner and one limited partner Liability limited to capital.

Business setup procedures

Setting up a company	Romania	Eastern Europe & Central Asia
Procedures (number)	6.0	6.3
Time (days)	10.0	16.3

Source: Doing Business.

For further information: Consult Doing Business Website, to know about procedures to start a Business in Romania.
Trade Register
The competent organization: The National Trade Register Office.

FDI in figures

Foreign Direct Investment	2008	2009	2010
FDI inward flow (millions USD)	13,909	4,847	3,573
FDI stock (millions USD)	67,911.1	72,007.0	70,011.7
Performance Index*, ranking on 141 economies	41	47	-
Potential Index**, ranking on 141 economies	65	-	-
Number of Greenfield investments***	356	201	-
FDI inwards (in % of GFCF****)	21.3	15.6	-
FDI stock (in % of GDP)	33.2	45.9	-

Source:

Note: * The UNCTAD Inward FDI Performance index is based on a ratio of the country's share in global FDI inflows and its share in global GDP. ** The UNCTAD Inward FDI Potential index is based on 12 economic and structural variables such as GDP, foreign trade, FDI, infrastructures, energy use, R&D, education, country risk. *** Green field investments are a form of foreign direct investment where a parent company starts a new venture in a foreign country by constructing new operational facilities from the ground up. **** Gross fixed capital formation (GFCF) measures the value of additions to fixed assets purchased by business, government and households less disposals of fixed assets sold off or scrapped.

Why you should choose to invest Romania

Strong points: The main strong points of Romania are:
- A relatively large domestic market;
- A skilled and inexpensive workforce;
- Its membership of the European Union and its future adoption of the Euro as currency.
Weak points: The country's weak points are:
- Its infrastructures (highways, railroads, air ) are of bad quality and in need of improvement;
- A significant corruption and the government is not capable of using the financial aid form the European Union wisely;
- A relatively poor population which has limited purchasing power.
Government measures to motivate or restrict FDI: The Romanian government has reaffirmed its willingness to privatize the public sector, especially in the fields of energy, heavy industry and pharmaceutical industry. The Authority for State Assets Recovery (AVAS) is in charge of the formulation, adoption and implementation of privatization. The government has recently passed laws that include financial aid for investments of more than 30 million Euros (EUR) which can create at least 300 jobs and encourage investments in certain economy sectors, such as energy. Romania has one special industrial zone.

Procedures relative to foreign investment

Acquisition of holdings: Taking the majority shareholdings of a Romanian company is allowed.
Obligation to declare: The agency on promoting foreign investment in the country can inform one about the necessary permissions required for business setup.
Competent organization for the declaration: Agency for the Promotion of Foreign Investment.

Finding assistance for further information

Investment aid agency: Investing in Romania
Agency for the Promotion of Foreign Investment
National Bank of Romania
Other useful resources