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Invest in Romania

There are a number of reasons that would determine a businessman to invest in Romania. Some of the basic reasons for investing capital in this country will be presented in this article, but extensive information on this subject can be provided by our team of Romanian lawyers, who can also offer consultancy services on how to invest here. 

With an attractive geographical location, that opens the possibility of establishing business contacts with the Middle East and with other important business markets, Romania offers a highly skilled labor market and a moderate level of taxation. Depending on the size of the business, one can benefit from a very low corporate taxation and from numerous industrial parks designed to accommodate the needs of industries such as IT&C and aerospace. 

What are the basic advantages for investing in Romania?

Although it is difficult to pinpoint all the relevant advantages for investing here, as they may differ based on the needs of a foreign investor, there are a number of benefits one can obtain in Romania, regardless of the economic sector in which the businessman will activate. It must be noted that Romania is a member state of the European Union (EU) and has a stable social and political environment. Some of the highlights that can determine a businessman to invest in Romania are the following:

  • Romania has signed 184 bilateral agreements with the member states of the United Nations (UN);
  • the country is also a member state of the World Trade Organization since 1995, a member of the EU since 2007 and a NATO member;
  • the corporate tax level is moderate, companies being taxed at the standard rate of 16%, while micro-companies are charged with either 1% or 3% on their turnover, as long as this has a value of maximum EUR 1 million;
  • foreign entities (which can be represented by foreign companies or foreign natural persons) are allowed to acquire property in Romania starting with 1st of January 2014;
  • Romania also has 88 industrial parks and a large part of them (24) is located in the Southern part of the country. 

What should an investor know when starting a business in Romania?

Romania has a competitive market and there are several economic sectors that made the country known across the world, such as is the case of the IT sector, which is one of the most developed in its region. The Romanian government provides several types of incentives for those who want to invest in Romania in the IT sector and it must be noted that the country also provides some of the most talented specialists in the field. You can address to our law firm in Romania for more details on the legislation related to the IT sector. 

The video below offers a short presentation on the main reasons for investing in Romania

When starting a business, in Romania or elsewhere, investors will be interested not only on the aspects that were presented above, but also on the procedures for opening a company. Although the commercial legislation in Romania prescribes the same types of legal entities that can be registered elsewhere in Europe, the procedures involved in the registration differ from a country to another. 

Overall, Romania is positioned at a global level as a very competitive jurisdiction with regards to the registration of a company, as presented by the Doing Business 2020 Report. For the score of starting a business, which is measured from 0 to 100 (where 0 records the lowest results and 100, the best results), Romania obtained an overall score of 87.7. 

The steps involved starting a local business are made of six basic procedures, but the registration of a company can last up to 20 days. In this latest report, which analyses most of the world’s economy, Romania stands out as an attractive country for trading matters (it is on the 1st rank at a global level for the trading across borders index), which shows that the Romanian procedures involved in import-export are highly competitive. 

This aspect is of high importance for business directly involved in trading activities or for those that rely on constant import-export operations. Another aspect worth mentioning for those who want to invest in Romania is that the local legislation prescribes straightforward procedures when we refer to enforcing contracts, as the country ranks as the 19th economy at a global level. 

Other highlights can refer to the quality of the procedures involved in paying taxes, where Romania ranks as the 32nd economy, or the procedures for obtaining a credit (the 25th rank). There are other attractive reasons that can determine a businessman to invest in Romania and for extensive information on this subject you can always rely on the expertise of our Romanian lawyers. Please contact our law firm in Romania for consultancy services!