ACG Business & Management

General
Romania's geographical location facilitates access from practically all parts of Europe. The Romanians' traditional friendliness and hospitality also help make contacts easy and fruitful.
The adoption of a new constitution took place on 21 November 1991 and free parliamentary and presidential elections in May 1990 and September 1992 marked stages on a one-way route out of Romania’s totalitarian past.

Business Card

Tax advantages for non-residents
Banking confidentiality
Holdings
75% of the country’s economy is supported by the private sector
90% of companies consider that sales and profits will increase over the next three years
Growth factors - Increased consumption, increased consumer credit, company investments and exports
Official language - Romanian
Population 2005 - 22,329,977 inhabitants
Area - 238,391 km²
Currency - Leu
Main city - Bucharest (capital)

Banking
There is a wide choice of banks. Most banks offer an Internet banking service, an advantage when managing an offshore company.

Taxes
Romania offers attractive conditions for companies in all sectors of the economy. The country differs in a very positive way from neighbouring countries in the various fiscal advantages it affords. The formalities involved in creating a company are not particularly complex. In addition, its large number of double taxation treaties makes Romania a strategic location for fiscal optimisation.

In January 2005, the new government introduced major and fundamental tax reforms replacing the system of progressive taxation in Romania with a 16% tax rate on personal income and company profits or a 3% tax on company revenue. Romania now has one of the most liberal tax systems in Europe and it is expected that this, along with increased foreign investment, will boost economic growth in the years ahead.

Companies
Two types of company are most commonly used :

the private limited (Ltd)
the public limited company (plc), allowing investors to choose the option best suited to their interests.

The private limited company model is that most often used in Romania, used equally in the context of offshore activities.

Based on limited capital and a minimum of one shareholder who can also be a director,
the model does not require inclusion of a person resident in the country in company articles. Moreover, shares in the company can be transferred without any particular restrictions being imposed.
This type of company is taxed in exactly the same way as a company based in Romania.

Another important advantage is that anyone may incorporate a company in Romania without an in-country presence being required.