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Economy
Romania, a country of 22.3 million
population, is one of the fastest
growing economies in Europe. During
the last 17 years, the Romanian economy
has itself radically transformed,
from a centralized system to a free
market one, competitive in most of
its fields. The large program of privatization,
together with the investments made
in the production field, transform
the Romanian economy in modern and
efficient one. Romania became a full-fledged
member of the European Union on 1
January, 2007.
Manufacturing and engineering are
Romania's backbone industries. The
country also possesses substantial
energy resources and agricultural
land. Most sectors of the economy
remain under-exploited and offer great
potential, particularly manufacturing,
agriculture and tourism. The technology
sector continues to play an increasingly
important role in the economy due
to the high level of skill among its
workers and rather low wage costs.
The real estate sector also offers
significant growth opportunities.
Sectors that attracted foreign investment
in recent years include oil and natural
gas, automotives, metallurgy, banking
and finance, food processing, heavy
engineering, telecommunications, construction
and consumer goods manufacturing.
Investors have expressed interest
in newly privatized industries as
well as in green-field projects. Romania's
government has reaffirmed its commitment
to privatize the remaining state-owned
companies, particularly those in energy,
heavy industry, pharmaceuticals and
utilities.
Setting up Business in Romania
There are no specific investment approvals
required for setting up a business
in Romania. There is an equal treatment
for Romanian and foreign investors.
The procedure requires fulfilling
certain legal formalities such as
getting a judge's approval and registering
with the Romanian Trade Register and
the Fiscal Administration. At present,
in Romania there are more than 200
companies with Indian capital.
Different forms of Business
establishment in Romania are:
• Limited liability company
(SRL)
• Joint stock company (SA)
• Representative Office
• Branch of foreign company
• Partnership
• Consortium
• Trust
• Economic Interest Group (EIG)
• European Economic Interest
Group (EEIG)
• Societas Europae (SE)
• Entities commonly used by
foreign investors
Investments
Foreign and domestic investors are
offered equal opportunities and equal
treatment to invest in Romania. The
complex process of privatization and
economic reforms of the Romanian economy
made it attractive to many renowned
companies from all over the world,
including India, which found there
many investment opportunities, reliable
business partners and skillful workforce.
The total foreign investments between
1990 and 2006 amounted at Euro 17.2
billion (Euro 9.1 billion only in
2006). It is also good to mention
that 78 percent of the investments
were made in industry, 11 percent
in trade and 9.0 percent in services
field. Several Indian origin investments
had recently come to Romania in such
diverse sectors such as steel, petrochemicals,
textiles, pharmaceutical, packaging,
IT, property development and tourism.
The total investment of Indian origin
is estimated to $2.1 billion.
Taxation
A foreign company is considered to
have a permanent establishment in
Romania, without a legal presence
here, if it has any of the following
types of presence in Romania: an office,
a branch, an agency, a factory, a
mine, land for oil and gas extraction,
a building site that exists for a
period exceeding six months. The standard
profits tax rate is 16 percent.
Free Trade Zones
There are seven free trade zones in
Romania, located in Constanta Sud-Agigea
(on the Black Sea (including the harbour
area), Sulina, Galati, Braila, Giurgiu
(along the Danube), Basarabi and Curtici-Arad
(on the Romania- Hungary border).
The activities carried out within
a specific free trade zone should
comply with the list of activities
provided by legislation and should
be licensed by the administrative
authority of the zone. Free trade
zones are characterized by a specific
customs regime: the customs supervision
is limited to the boundary of such
areas. Means of transport, products
and other goods are admitted into
the free trade zones regardless of
their country of origin or destination.
However, import of goods subject to
prohibition under domestic law or
under international agreements to
which Romania is a party, is forbidden.
Romanian - Indian Economic
Relations
India represents one of the most important
economic partners for Romania in Asia,
a solid market for Romanian goods
and an important supplier of many
products needed by the Romanian economy.
At the same time, Romania and India
have already achieved a number of
economic projects in various fields
such as: oil, petrochemicals, energy,
metallurgical industry and others.
Romanian - Indian Trade
Main Romanian Export Products
Metallurgical products (sheets, pipes,
profiles, tubing and casing, drilling
pipes, etc), rolling stock materials
(monobloc wheels and wheel sets for
wagons, etc.), CKD for automotive
industry, chemical products (organic
and un-organic), metallurgical equipment,
components and spare parts for oil
and gas industry, machine tools, bearings,
pharmaceutical products, synthetic
fibers, electric and electronic components,
aluminum and aluminum products, paper,
etc.
Main Import Products from India
Iron ore and manganese ore, organic
chemical products, pharmaceutical
products, tabaco, PVC, rubber and
rubber products, textiles, optical
aparata, mesuring aparata, etc.
Advantage of Location
Romania is situated on the west part
of the Black Sea, in Southeast Europe
and has an area of 238,000 sq km.
Republic of Moldavia and Ukraine border
Romania on its east and north, while
Hungary and Serbia on its west and
Bulgaria on its south.
The country is broadly divided into
three regions: the central and northwestern
region comprising Transylvania, Crisana,
and Banat and encompassing the Carpathian
mountains; the southern region comprising
the Wallachian Plain with the river
Danube forming the country's southern
border; and the eastern region comprising
the Moldovan Plain. Bucharest is the
capital city with a population of
more than two million. Other big cities
are Constanta, Iasi, Cluj-Napoca,
Timisoara, Galati, Brasov and Craiova.
Romania has a continental European
climate with warm summers and cold
winters.
Population & Languages
Romania has an average density of
91 inhabitants per sq. km. and a population
of 22.3 million, 91 percent of whom
are ethnic Romanians. Minorities include
Hungarian (6.7 percent), Roma (1.1
percent), German (0.2 percent), and
Ukrainian (0.3 percent). Romanian
is the common language used throughout
the country. In the northwest and
central regions, Hungarian and German
are also spoken. Under recent Constitution
amendment, ethnic minorities are allowed
to use their mother tongue in certain
circumstances (e.g. in court).
Useful Addresses:
Chamber of Commerce &
Industry of Romania
2, Octavian Goga Blvd.
Bucharest-3, Romania
Tel : + 40-21-3190102
Fax: + 40-21-3190101
E-mail : ccir@ccir.ro
Website: www.ccir.ro
Romanian Trade Promotion Center
17, Apolodor Street,
Bucharest, Romania
Tel: + 40-21-3185079
Fax: + 40-21-3111491
E-mail: office@traderom.ro
Website: www.traderom.ro
Romexpo S.A. (organizer of the local
and international exhibitions)
65-67, Marasesti Blvd.,
Bucharest, Romania
Tel: +40-21-2025703
Fax: +40-21-2240400
E-mail: marketing@romexpo.org
Website: www.romexpo.org
Romanian Agency for Foreign
Investment
22, Primaverii Blvd.,
Bucharest, Romania
Tel: +40-21-2339103
Fax: +40-21-2339104
E-mail: aris@arisinvest.ro
Website: www.arisinvest.ro
Authority for State Assets
Recovery
50, Av. Alexandru Serbanescu Street,
Bucharest, Romania
Tel: +40-21-3036510
Fax: +40-21-3036521
E-mail: privatizare@avas.gov.ro
Website: www.avas.gov.ro
Consulate General of Romania -
Trade Commission - Mumbai
Maker Chambers V, 11th Floor,
1114-1115, Nariman Point,
Mumbai 400021
Tel: 022-22826108
Fax: 022-22885698
Mail:romtrade.mumbai@gmail.com
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