U.S. Commercial Service www.buyusa.gov

Doing Business in ROMANIA: 2009 Country Commercial Guide for U.S. Companies

“Romania’s rate of economic growth in 2008 stood at an impressive 7.1%, but has decelerated and is now expected to remain at or below 1% in the year ahead. Against this backdrop, CS Romania advises U.S. businesses to investigate and pursue opportunities – both public and private sector — in which the funding sources and prospects for payment are reliable.

“A local business presence is essential to success in the Romanian market, and this can take the form of a distributor agreement, subsidiary, joint venture or acquisition. Regardless of the form of investment or entry strategy, American businesses considering the Romanian market should research their specific prospects thoroughly, perform due diligence, and be prepared to adapt their business models as necessary. Retaining legal counsel with solid knowledge of Romanian law is extremely important, and relationships with other service providers such as banks and accountants can provide excellent value as well. Selling through a local Romanian partner is a standard element of most entry strategies. Therefore, a U.S. company’s success can hinge on identifying, qualifying and selecting a partner with the resources and expertise to help accomplish its objectives.”

Romanian Agency for Foreing Investment http://arisinvest.ro

“When considering Romania as a possible location for developing their businesses, foreign investors take a close look to the advantages provided by our country:

Market & Location Advantage

-         One of the largest markets in Central and Eastern Europe (ranking 7th , with over 21 million inhabitants);

-         EU unique market gateway (access to approximately 500 million consumers);

-         Attractive location: situated at the turning point between EU, the Balkans and CIS countries, Romania is crossed by three important pan-European transportation corridors: corridor no. IV linking Western and Eastern Europe, corridor no. IX connecting Northern and Southern Europe and no. VII – Danube River, facilitating inland water transportation, at the same time connecting the Romanian Port of Constanta (the biggest Port to the Black Sea) to Northern Europe, through the Rhine.

Resource Advantage

-         Highly skilled labor force at competitive prices (solid knowledge in foreign languages, technology, IT, engineering, etc);

-         Rich natural resources, including surface and underground waters, fertile agricultural land, oil and gas;

-         High potential for tourism.

Political Advantage

-         Stability factor in the Area – NATO membership;

-         Stability Guarantee in South Eastern Europe;

-         EU membership.

IR Advantage

-         Bilateral agreements between Romania and other countries on investments  promotion and protection;

-         Bilateral diplomatic relations with 177 out of the 191 UN member states, plus the Holy See, the Sovereign Military Order of Malta and the Palestinian National Authority;

-         Member of the UN and other international organizations, like: OSCE, Council of Europe and International Organization of La Francophonie;

-         Free trade agreements with EU, EFTA countries, CEFTA countries;

-         WTO member since January 1995.

Economical Advantage

-         Sustainable economic growth;

-         Decreasing inflation;

-         Increasing interest on behalf of Foreign Investors – leader destination for FDI in the region (source: Ernst&Young, SEE Attractiveness Survey – SouthEast Europe: An Emergent FDI Destination in Europe, April 2008);

-         Sound fiscal policy (16% flat tax).

Social Advantage

-         Agreement between Government and major unions;

-         No major union movements;

-         Labor relations regulated by the Romanian Labor Code.

Legislative Advantage

-         Similar legal provisions as in UE  (Acquis Communautaire implementation);

-         Fiscal policy regulated by the Fiscal Code.

Other Advantages

-         Continuously improving infrastructure (commitment to improve the highway infrastructure to EU standards);

-         Well-developed networks of mobile telecommunications in GSM systems;

-         Highly developed industrial infrastructure, including oil and petrochemicals;

-         Presence of branch offices and representatives of various well-known international banks;

-         Extensive maritime and river navigation facilities.“

Doing Business www.doingbusiness.org

Romania’s ranking in the world according to the Doing Business report of the world bank (out of 183 economies analyzed):

-         Ease of doing business – 55

-         Starting a business – 42

-         Dealing with construction permits – 91

-         Employing workers – 113

-         Registering property – 92

-         Getting credit – 15

-         Protecting investors – 41

-         Paying taxes – 149

-         Trading across borders – 46

-         Enforcing contracts – 55

-         Closing a business – 91

If you will come to work or do business in this country, we will be honored to provide you with our consultancy and assistance services