The Romanian businessThe Romanian business
environmentenvironment
Rizea Silviu – FlorinRizea Silviu – Florin
82208220
I.M....
 Approximately 98% of the businesses in Romania areApproximately 98% of the businesses in Romania are
conducted via limit...
Limited liability companiesLimited liability companies
 A limited liability company may beA limited liability company may...
Joint stock companiesJoint stock companies
 Decisions are made by majority vote in theDecisions are made by majority vote...
PartnershipsPartnerships
General partnershipGeneral partnership
 The major feature of aThe major feature of a
general par...
BranchesBranches
 An alternative solution for doing business in Romania,An alternative solution for doing business in Rom...
Represantive OfficesRepresantive Offices
 Foreign corporations are also entitledForeign corporations are also entitled
to...
Employment of foreignersEmployment of foreigners
 Foreigners entering Romania for workingForeigners entering Romania for ...
Investments Law And InvestmentInvestments Law And Investment
IncentivesIncentives
 For investments accomplished by 31For ...
Industrial parksIndustrial parks
 An industrial park is an individualized territory, fulfillingAn industrial park is an i...
Accounting, audit and fillingAccounting, audit and filling
requirementsrequirements
 The Romanian accounting law setsThe ...
Fiscal enviroment in RomaniaFiscal enviroment in Romania
 This section covers recent taxThis section covers recent tax
de...
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Prezentare engleza (rizea silviu)

Prezentare engleza
Published on: Mar 4, 2016
Published in: Business      
Source: www.slideshare.net


Transcripts - Prezentare engleza (rizea silviu)

  • 1. The Romanian businessThe Romanian business environmentenvironment Rizea Silviu – FlorinRizea Silviu – Florin 82208220 I.M.A.P.A.I.M.A.P.A.
  • 2.  Approximately 98% of the businesses in Romania areApproximately 98% of the businesses in Romania are conducted via limited liability companies (the most commonconducted via limited liability companies (the most common legal form of company), or joint stock companies.legal form of company), or joint stock companies. Investors, either domestic or foreign, usually prefer aInvestors, either domestic or foreign, usually prefer a limited liability company when they decide to set up a smalllimited liability company when they decide to set up a small or a middle sized business in Romania, especially if theor a middle sized business in Romania, especially if the company will be managed by its shareholders, while thecompany will be managed by its shareholders, while the joint stock companies are usually, but not always, largejoint stock companies are usually, but not always, large companies with more widely dispersed ownership.companies with more widely dispersed ownership.  Irrespective of its legal form, a company becomes a legalIrrespective of its legal form, a company becomes a legal entity upon its registration with the Romanian Tradeentity upon its registration with the Romanian Trade Register Office, where certain legal formalities have to beRegister Office, where certain legal formalities have to be followed, including a delegated judge’s decision and thefollowed, including a delegated judge’s decision and the granting of the fiscal code of the new company.granting of the fiscal code of the new company.
  • 3. Limited liability companiesLimited liability companies  A limited liability company may beA limited liability company may be established by one or more entities, eitherestablished by one or more entities, either individual or legal. Restrictions exist withindividual or legal. Restrictions exist with respect to the number of shareholders of arespect to the number of shareholders of a limited liability company (no more thanlimited liability company (no more than 50), as well as the number of limited50), as well as the number of limited liability companies one can establish byliability companies one can establish by himself (an entity may be the solehimself (an entity may be the sole shareholder of only one limited liabilityshareholder of only one limited liability company; also, the shares of a limitedcompany; also, the shares of a limited liability company cannot be owned entirelyliability company cannot be owned entirely by another limited liability company whoby another limited liability company who has, in its own turn, a sole shareholder).has, in its own turn, a sole shareholder).
  • 4. Joint stock companiesJoint stock companies  Decisions are made by majority vote in theDecisions are made by majority vote in the General Meeting of Shareholders, in accordanceGeneral Meeting of Shareholders, in accordance with the general principle that 1 share equals 1with the general principle that 1 share equals 1 vote. Shareholders may, however, imposevote. Shareholders may, however, impose restrictions on the number of votes that arestrictions on the number of votes that a shareholder owning more than 1 share is entitledshareholder owning more than 1 share is entitled to.to.  The company is managed by one or moreThe company is managed by one or more administrators (again there are no restrictions onadministrators (again there are no restrictions on their nationality) and it should also have at leasttheir nationality) and it should also have at least three internal censors (among which one shouldthree internal censors (among which one should be a chartered or certified accountant), or anbe a chartered or certified accountant), or an independent auditor.independent auditor.
  • 5. PartnershipsPartnerships General partnershipGeneral partnership  The major feature of aThe major feature of a general partnership is thatgeneral partnership is that all partners are jointly andall partners are jointly and severally liable with theseverally liable with the other partners without anyother partners without any limit. The liability existslimit. The liability exists only for the period theonly for the period the partner is a member. Twopartner is a member. Two limited liability companieslimited liability companies are allowed to form aare allowed to form a general partnership.general partnership. Limited partnershipLimited partnership  In the case of a limitedIn the case of a limited partnership, at least onepartnership, at least one partner faces unlimitedpartner faces unlimited liability (see above onliability (see above on general partnerships) whilegeneral partnerships) while at least one other partnerat least one other partner must exist who is liablemust exist who is liable only for the amountonly for the amount  of its contribution toof its contribution to capital.capital.
  • 6. BranchesBranches  An alternative solution for doing business in Romania,An alternative solution for doing business in Romania, commonly used for short term investments, is thecommonly used for short term investments, is the establishment of a branch structure.establishment of a branch structure.  Under the Romanian laws, branches are deemed to beUnder the Romanian laws, branches are deemed to be working units with no legal personality, and are subject toworking units with no legal personality, and are subject to registration with the Trade Register prior to theregistration with the Trade Register prior to the commencement of their activity.commencement of their activity.  Branches should have at least one representative in chargeBranches should have at least one representative in charge of the management of the entity and they should keep theirof the management of the entity and they should keep their own accounting records, separated from those of theown accounting records, separated from those of the parent company. An overseas company may also operate inparent company. An overseas company may also operate in Romania via a permanent establishment, subject toRomania via a permanent establishment, subject to registration with the tax authorities, for tax purposes.registration with the tax authorities, for tax purposes.
  • 7. Represantive OfficesRepresantive Offices  Foreign corporations are also entitledForeign corporations are also entitled to set up representative offices into set up representative offices in Romania. However, a representativeRomania. However, a representative office is not a valid option foroffice is not a valid option for conducting business, since theyconducting business, since they cannot carry out commercialcannot carry out commercial activities and are restricted toactivities and are restricted to advertising and promoting theadvertising and promoting the business of their parent company.business of their parent company.
  • 8. Employment of foreignersEmployment of foreigners  Foreigners entering Romania for workingForeigners entering Romania for working purposes are bound to obtain theirpurposes are bound to obtain their working permit by the local labourworking permit by the local labour authorities. For the transition period untilauthorities. For the transition period until Romania becomes a member of the EU,Romania becomes a member of the EU, simplified procedures for obtaining thissimplified procedures for obtaining this document are provided for citizens of thedocument are provided for citizens of the EU countries, who however will not beEU countries, who however will not be required a working permit once Romaniarequired a working permit once Romania joins the European Union.joins the European Union.
  • 9. Investments Law And InvestmentInvestments Law And Investment IncentivesIncentives  For investments accomplished by 31For investments accomplished by 31 December 2006, the law permits aDecember 2006, the law permits a one-time allowance of 20% of theone-time allowance of 20% of the value of the investment (only forvalue of the investment (only for fiscal purposes), granted as afiscal purposes), granted as a reduction of the taxable base in thereduction of the taxable base in the month the investment wasmonth the investment was accomplished.accomplished.
  • 10. Industrial parksIndustrial parks  An industrial park is an individualized territory, fulfillingAn industrial park is an individualized territory, fulfilling certain criteria, where industrial activities may be carriedcertain criteria, where industrial activities may be carried out by any company that whishes to set up its business inout by any company that whishes to set up its business in the respective premises. Up to date, there are 32 industrialthe respective premises. Up to date, there are 32 industrial parks operating in Romania.parks operating in Romania.  Investors contemplating setting up their business within anInvestors contemplating setting up their business within an industrial park should know that by 31 December 2006industrial park should know that by 31 December 2006 they will benefit from a 20% reduction of thethey will benefit from a 20% reduction of the investment’s value in the month the investment was putinvestment’s value in the month the investment was put into function. The 20% reduction applies only for buildingsinto function. The 20% reduction applies only for buildings and other related expenses.and other related expenses.  Buildings and land within an industrial park are alsoBuildings and land within an industrial park are also exempted from local taxes. Industrial park regime cannotexempted from local taxes. Industrial park regime cannot be cumulated with the investments with significant impactbe cumulated with the investments with significant impact regime.regime.
  • 11. Accounting, audit and fillingAccounting, audit and filling requirementsrequirements  The Romanian accounting law setsThe Romanian accounting law sets out the general accounting andout the general accounting and financial reporting principles andfinancial reporting principles and regulations. Thus, the records shouldregulations. Thus, the records should be kept in Romanian languagebe kept in Romanian language and denominated in Romanian leu,and denominated in Romanian leu, while reports should be submittedwhile reports should be submitted under standard formats provided byunder standard formats provided by the legislation.the legislation.
  • 12. Fiscal enviroment in RomaniaFiscal enviroment in Romania  This section covers recent taxThis section covers recent tax developments in the region, as Romaniadevelopments in the region, as Romania has made significant changes in its fiscalhas made significant changes in its fiscal legislation over the last few years. As alegislation over the last few years. As a part of Romania’s efforts to adopt the EUpart of Romania’s efforts to adopt the EU taxation standards, the entire fiscaltaxation standards, the entire fiscal legislation of Romania was recently putlegislation of Romania was recently put together in one common law – The Fiscaltogether in one common law – The Fiscal Code of Romania, in force asfrom 1Code of Romania, in force asfrom 1 January 2004.January 2004.

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