Romania Frequently Asked Questions

What sectors are most attractive for investment in Romania?

  • IT and Technology: Romania has over 212,000 IT specialists and ranks in the top 10 globally for programming skills. (Source: InvestRomania, Romanian Software Industry Reports)
  • Automotive and Aerospace: The automotive industry contributes 14% to Romania’s GDP, with major companies like Dacia (Renault) and Ford leading the sector. (Source: ACAROM – Romanian Automobile Manufacturers Association)
  • Renewable Energy: Romania aims to reach 30.7% of energy from renewable sources by 2030 under EU directives. (Source: Ministry of Energy, European Commission Energy Reports)
  • Agriculture and Food Production: Romania is one of the largest grain producers in Europe and exported EUR 4.6 billion in agricultural products in 2023. (Source: Romanian Ministry of Agriculture)
  • Real Estate and Construction: Urban development in Bucharest, Cluj, and Timișoara continues to attract FDI, with annual growth of 8-10% in commercial and residential projects. (Source: Colliers Romania)

How can I start the process of investing in Romania?

Starting the process of investing in Romania involves research, planning, and completing legal formalities. Here’s a comprehensive guide:

Step 1: Research Investment Opportunities

  • Explore Sectors: Identify industries that align with your goals. Key sectors include IT, automotive, renewable energy, real estate, and agriculture.
  • Government Resources: Visit InvestRomania for sector analyses, investment incentives, and guidance.
  • Networking: Participate in trade shows, conferences, and events like GoTech World or Foreign Investors Summit.

Step 2: Choose a Business Structure

The most common options are:

  • SRL (Limited Liability Company): Suitable for small and medium-sized businesses.
  • SA (Joint Stock Company): Designed for larger enterprises or publicly traded companies.

Step 3: Reserve a Business Name

Use the ONRC Name Reservation Tool to check and reserve a unique name for your business.

Step 4: Prepare Incorporation Documents

You’ll need:

  • Articles of Association: Defines the company’s objectives, shareholders, and governance.
  • Proof of Registered Office: Confirm your official business address.
  • Shareholder Identification: Valid identification or registration for individuals and entities.
  • Bank Account Proof: Deposit the minimum share capital (RON 200 for SRLs).

Step 5: Register Your Business

Submit your registration file to the National Trade Register Office (ONRC) in person or via the ONRC online portal.

Required documents include:

  • Articles of Association.
  • Proof of name reservation.
  • Bank confirmation of share capital deposit.
  • Proof of registered office ownership or lease.

Registration fees vary but are typically RON 122 for an SRL.

Step 6: Obtain a Tax Identification Code

After registration, you must apply for a fiscal code with the National Agency for Fiscal Administration (ANAF).

Step 7: Register for VAT (if applicable)

If your turnover is expected to exceed RON 300,000 (EUR 60,000), register for VAT with ANAF.

Step 8: Open a Bank Account

Open a business bank account to manage transactions and financial operations.

Step 9: Operational Setup

Set up utilities, hire staff, and ensure compliance with sector-specific regulations.

Key Resources for Starting Your Investment

  • ONRC (National Trade Register Office): Official guidance on business registration.
  • ONRC Registration Guidelines: Step-by-step instructions.
  • InvestRomania: Insight into government incentives and investment opportunities.
  • Enterprise Europe Network: Cross-border collaboration and partnership opportunities.

Are there any government incentives for foreign investors when investing in Romania?

  • State Aid Scheme: Covers up to 50% of eligible expenses for projects exceeding EUR 1 million.
  • EU Structural Funds: Romania is allocated EUR 31 billion under the 2021-2027 EU budget for development and innovation.
  • Free Trade Zones: Tax benefits in industrial hubs like Constanța and Galați.

What is the process for establishing a business in Romania?

  • Choose a Structure: Most foreign investors opt for a Limited Liability Company (SRL).
  • Steps to Register:
    • Reserve your business name on the Trade Registry website.
    • Prepare incorporation documents such as Articles of Association.
    • Deposit minimum share capital (RON 200/EUR 40 for SRL).
    • Register with the National Trade Register Office (ONRC) and obtain a unique fiscal code.
    • Register for VAT if revenues exceed RON 300,000/EUR 60,000.
  • Processing Time: Typically 3-5 days after document submission.

For a more detailed answer, please check Q2.

How do I find suitable investment opportunities in Romania?

Investment Portals:

  • InvestRomania: Government-run platform showcasing opportunities across key sectors.
  • Start-up.ro: A dedicated platform for startups, featuring news, success stories, and investment opportunities in Romania’s entrepreneurial ecosystem.
  • StartUpCafe: Focused on helping startups access funding and grow their businesses.

Accelerators and Hubs:

  • Techcelerator: Supports tech startups.
  • Impact Hub Bucharest: Offers coworking and networking.

Reports and Databases:

  • EY Romania Reports: Industry-specific market insights.
  • Statista: Data on Romanian industries.
  • Activize.tech Report & Data

What is the investment climate in Romania?

  • Economic Growth: Romania’s GDP grew by 2.4% in 2023, and inflation fell to 9.5% in the same year. (Source: Romanian National Institute of Statistics)
  • FDI Inflows: FDI reached EUR 11.3 billion in 2023, driven by sectors like IT, automotive, and real estate. (Source: BNR – National Bank of Romania)
  • World Bank Ranking: Romania ranks 55th in the World Bank’s Ease of Doing Business Index 2023, showing steady progress.

How can I access data and research on Romanian investment opportunities?

Official Sources:

  • National Bank of Romania (BNR): Financial and economic data.
  • INS (Institutul Național de Statistică): Statistical reports.

Private Reports:

  • Deloitte Romania: Sectoral investment guides.
  • PwC Romania: Tax and legal insights.

Research Platforms:

  • Romania-Insider: News and investment articles.

What legal considerations should I be aware of when investing in Romania?

  • Corporate Law: Compliance with the Romanian Company Law (Law No. 31/1990) is essential.
  • Taxation:
    • Corporate tax rate: 16%.
    • VAT: 19% standard, with reduced rates of 5% and 9% for specific goods/services.
  • Labor Law: Fixed-term and part-time contracts must comply with the Romanian Labor Code.
  • Foreign Land Ownership: Restrictions apply to agricultural land but can be bypassed through local entities.
  • Consult Legal500 Romania for trusted legal advisors.

What are the risks of investing in Romania?

  • Regulatory Changes: Romania faces frequent updates in tax and labor laws, especially before and after elections.
  • Corruption Risks: Transparency International ranks Romania 63rd globally on the Corruption Perception Index.
  • Bureaucracy: Administrative processes can be slow, particularly for permits and licenses.
  • Macroeconomic Factors: Romania is vulnerable to EU market fluctuations and high public debt levels (estimated at 47% of GDP in 2023).