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What You Need to Know When Doing Business in Romania

Are you a foreign investor intersted in starting a business in Romania? Read below an article presented by our Romanian lawyers that answers some of the most important questions about starting a company.

Question: I am interested in starting a business in Romania. What should I know before opening my company?

Answer: No matter how many technicalities might be brought into discussion, there are several obvious benefits for all entities interested in starting a business in Romania. Despite being so eagerly criticized for displaying a financially fragile profile, this region gradually improved at different levels and consciously experimented with various new methods of reviving the economic imbalances left behind by an inexpedient political regime.

Romania’s evident position refers to a constant-change condition and this might be perceived as inauspicious, but reality builds itself from a different perspective.

From a geographical point of view, this territory provides two distinct advantages, one referring to the economic availability proven by its geostrategic position in Europe, and the other one relating to natural resources which consistently influenced a rapid development of the renewable energy market.

The highly skilled labour force delivers another strong reason for doing business in Romania. Specialists from various fields come to provide a set of services which definitely impress through promptitude and eloquence. Moreover, the employment taxes are lower compared to other EU countries, and you can ask our Romanian lawyers for more details.

At a more specific analysis, there are multiple economic benefits granted through Romania’s accession to EU. Coherent programs are regulating and financing various types of investments guaranteeing financial security. Romania itself reveals a series of consistent incentives provided in order to encourage investments in different domains.

Question: From experience, I know that every country has more benefits for different investment sectors or depending on the type of company a businessman chooses to open. What are your suggestions, as experienced lawyers in Romania, for starting a business?

Answer: Apart from bringing out some really profitable options, when starting a business in Romania, this country comes with certain exceptions which deserve to be emphasized right from the beginning as they might materialize as obstructive impediments or, they could also represent an important privilege which, disregarded, could alter the overall business development plan.

The most common types of business entities generally preferred by foreign investors are the joint stock company and also the limited liability one. The registration procedures stipulate that all papers required for the file must be presented to the local Trade Registry Office and the registration itself should take about five days from submission. There is a minimum share capital quota specified, but the maximum limit is not mentioned. There are specific conditions referring to managing structures, director’s liability and parent company liability. Financial statements, features referring to directors or censors and changes in the articles of incorporations must be reported to the Trade Registry.

Understanding the differences between the existing business forms is important and our lawyers in Romania can provide more information on your chosen business type.

Question: I plan to open a business in Romania that will involve hiring employees. What do I need to know forehand?

Answer: Starting a business in Romania also supposes a set of commitments which must be fulfilled either from an employee’s point of view or from an employer’s perspective. Agreements involving an international element are subject to interpretations, either involving Romanian law stipulations or a governing law chosen by parties.

Foreigners working in Romania are to follow the local employment regulations, only if there is no other different regime required. The overall employer’s status can be strictly controlled through the employment contract but there are also some other general requirements to be taken into account.

When not being familiar with the general legal apparatus, a foreign employer is rather advised to ask for a specialist’s help as there are certain intricate details that might be unwillingly ignored. Our Romanian lawyers can assist in drafting employment agreements.

Question: I am interested in starting a business in Romania, which will imply trademarks. Can you provide me with some details regarding the matter, please?

Answer: Business information in Romania reveal intellectual property stipulations, clearly establishing boundaries for granting a patent, for unauthorized production or for patent’s protection through registration.

An adapted regime applies to registered designs. Exclusive rights to exploit and sell the design are granted to the holder.

Trademarks are also under strict protection of the law and any type of infringements of the right is subject to civil or criminal liability. Copyrighted works are also strictly shielded. When registering a trademark, individuals usually prefer the assistance of a lawyer since this alternative delivers all necessary guarantees for future secure usage. Legal experts can also explain a wide range of entanglements which might occur in certain circumstances, and the intellectual property law experts at our Romanian law firm can assist you.

Each type of business comes with particular traits and, when doing business in Romania, it is important to be aware of all risks and benefits. Every domain reveals a series of pros and cons that must be carefully evaluated. There are certain fields which proved highly successful for the past 10 years, such as the renewable energy field, IT or telecommunications but, there are also unexploited areas which deserve all attention. All investment plans can prove financially advantageous only if an expert strictly estimates all threats and gains.

Our law firm proposes effective strategies in assessing these business plans and is also strongly engaged in providing solutions for a large variety of situations. We have experienced lawyers committed to offering you best alternatives which can secure any investment and, unquestionably, open any road to success. Call our law firm in Romania for a free consultation and let us help you grow.

by Cristian Darie