Since joining the European Union, the country has gone through many reforms to ease business operations and attract foreign investment. Investors who are setting up in Romania need to be ready, however, for the complex and rapidly changing legislation that makes it very difficult to keep your business compliant with local regulations. TMF Group research shows that understanding and complying with local rules, regulations and processes is one of the top challenges of doing business in Romania.
Key challenges to doing business in Romania:
Evolving compliance: Legislation in Romania is often changing; companies must put in extra effort to keep their operations compliant. Repeated amendments to national legislation - including the commercial, civil and fiscal codes - have a clear impact on both legal entities and their representatives.
Bureaucracy: The bureaucratic system in Romania is a challenge for both new and old companies; prescribed reporting requirements and fixed deadlines add to the pressure of relatively high penalties for non-compliance.
Key opportunities to doing business in Romania:
Starting a business: The incorporation process of a new company in Romania is relatively easy: it takes an average of 8 days to open a new business, placing Romania at 48 in the World Bank’s Ease of Doing Business rankings.
Access to talent: Romania has a well-educated workforce with good knowledge of foreign languages. There is a wealth of highly-skilled professionals and motivated graduates. The country has a growing number of shared services, research and development centres and highly-talented IT professionals.
Setting up a business in Romania
TMF Group is your trusted partner to help you to set up a new business in Romania. We manage the legal set-up of new operations and then help you stay compliant, manage your risk and stay on the right side of Romanian regulators and filing requirements.
Once registered, we can offer you a flexible and tailored solution to assist you with local back office operations, ongoing accounting, tax, payroll and statutory compliance and filing obligations, as well as your management reporting requirements.
Foreign investors can choose from the following types of business representations in Romania:
- Joint Stock Company
- Limited Liability Company
- General Partnership
- Limited Partnership
- Limited Partnership by Share
- Representative Office
Several legal documents are required in order to form a company, such as a trading licence, a registered office, a bank account, and several documents related to the shareholders and the company executives or representatives.
Subsequently, the newly incorporated company needs to register with the tax office and, in the case that it has employees, with the social and health insurance bodies.
Are you planning to expand into Romania? Make an enquiry!