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Starting a Business in Romania

Romania

Starting a Business in Romania

Romania Business Experts

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Why Start a Business in Romania?

Land area: 88,934 sq mi (230,339 sq km); total area: 91,699 sq mi (237,500 sq km)

Population: 22,215,421 (growth rate: 0.1%); birth rate: 10.5/1000; infant mortality rate: 22.9/1000; life expectancy: 72.4; density per sq mi: 250

Capital and largest city: Bucharest, 2,210,800 (metro. area), 1,906,800 (city proper)

Other large cities: Iasi, 320,000; Cluj-Napoca, 316,400; Timisoara, 316,100; Constanta, 309,000; Craiova, 301,100, Galati, 297,100; Brasov, 282,500

National day:

December 1 was adopted as National Day in 1990, being the day of celebration of the Great Assembly of Alba Iulia which voted for the union of Transylvania with Romania and which symbolise the union of all Romanians within a single state and the achievement of the unity of Romanian national state.

Legal holidays:

1 and 2 January (The New Year), Easter Monday, May Day, Holy Mary Day (15 August), First and Second Day of Whitsunday, 1 December, 25 and 26 December (Christmas).

Official language:

The Romanian language, which is the mother tongue of around 90% of the country's population. The easternmost representative of the family of Romance languages, Romanian descends directly from the Latin. The citizens belonging to ethnic minorities may freely use their mother tongue in schools, administration, justice, the media, culture.

Foreign languages:

The main foreign language used in Romania are: English, French, Italian. From the mid-19th century to the 1960s, the main foreign language used in Romania was French, to a certain extend, German.

Standard time:

East European zone lime (GMT + 2 hours). As of 1979, from the last Sunday in March to the last Sunday in September, Daylight Saving Time (GMT + 3 hours). Romania lies in the same time zone with the Republic of Moldova, Finland, Greece, Israel, Egypt and the Republic of South Africa.

Currency:

1 leu (plural - lei) = 100 bani (singular ban). The domestic convertibility of the leu was introduced in November 1991.

Economy - overview:

Romania, which joined the European Union, began the transition from Communism in 1989 with a largely obsolete industrial base and a pattern of output unsuited to the country's needs. The country emerged from a punishing three-year recession thanks to strong demand in EU export markets. Domestic consumption and investment have fueled strong GDP growth in recent years, but have led to large current account imbalances. Romania's macroeconomic gains have only recently started to spur creation of a middle class and address Romania's widespread poverty. Corruption and red tape continue to handicap its business environment. Romania hopes to adopt the euro by 2014.

GDP - real growth rate:
7.6%

GDP - per capita (PPP):
$12,200

GDP - composition by sector:
agriculture: 8.1%
industry: 36%
services: 55.9%

Labour force:
9.32 million

Labor force - by occupation:
agriculture: 29.7%
industry: 23.2%
services: 47.1%

Unemployment rate:
7,1%

FDI in Romania has increased dramatically. Net foreign direct investment was inbound US$12 billion (EUR 9.1 billion). Cheap and skilled labor force, low taxes, a 16% flat tax for corporations and individuals, no dividend taxes, liberal labor code and a favorable geographical location are Romanias main advantages for foreign investors. New investment stimuli introduced more favorable conditions to IT and research centers, especially to be located in the east part of the country (where is more unemployment), to bring more added value and not to be logistically demanding.

Agriculture - products:
wheat, corn, barley, sugar beets, sunflower seed, potatoes, grapes; eggs, sheep

Industries:
electric machinery and equipment, textiles and footwear, light machinery and auto assembly, mining, timber, construction materials, metallurgy, chemicals, food processing, petroleum refining

Industrial production growth rate:
8%
country comparison to the world: 27

Electricity - production:
58.28 billion kWh
country comparison to the world: 44

Current account balance:
-$28.03 billion
country comparison to the world: 178
-$23.02 billion

Exports:
$59.75 billion
country comparison to the world: 56
$40.32 billion

Exports - commodities:
machinery and equipment, textiles and footwear, metals and metal products, machinery and equipment, minerals and fuels, chemicals, agricultural products

Exports - partners:
Germany 16.5%, Italy 15.6%, France 7.4%, Turkey 6.6%, Hungary 5.1%, Bulgaria 4.2%

Imports:
$92.09 billion
country comparison to the world: 42
$64.54 billion

Imports - commodities:
machinery and equipment, fuels and minerals, chemicals, textile and products, metals, agricultural products

Imports - partners:
Germany 16.3%, Italy 11.4%, Hungary 7.4%, Russia 6%, France 5.7%, Turkey 4.9%, Austria 4.9%, Kazakhstan 4.6%, China 4.2%

Reserves of foreign exchange and gold:
$ 44.47 billion
country comparison to the world: 33
$ 39.96 billion

Debt - external:
$ 92.76 billion
country comparison to the world: 36

Click here to Ask an Expert about Starting a Business in Romania

Organisations that can assist with Starting a Business

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    GTP cross cultural trainings and intercultural workshops help global companies in improving their communication, efficiency and profitability when doing business across cultures.

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