Useful Info

 ROMANIA –  2012 FACTS AND FIGURES
A SELECTION OF 2012 OPPORTUNITIES

Bilateral trade figures 2012 (Q1)

The total bilateral trade amounted, in Q1 2012, to 697.76 million Euros (UK occupying the 11th place among the top commercial partners of Romania, with a share of 2.94% in the total trade of our country and the 9th place among the EU member states), being with 8.92% higher than the volume registered in the same period of the previous year.

Romanian exports to the UK market grew by 12.07% in Q1 2012 compared to Q1 2011, reaching 386.42 million Euros
7th place in the top countries of destination of goods shipped from our country, accounting 3.50% in total exports of Romania, 6th place between UE member states
Romanian exports to UK: machinery and electrical equipment (29.7% of the total Romania’s exports in UK), textile and clothing (26.6%), chemical products (8.4%), vehicles, aircraft, vessels and other equipment (7.7%), metals and article thereof (7.5%), diverse goods and products, including furniture (7.1%) and plastics (6.2%).

Imports of Romania from UK have increased by 5.25% to 311.34 million Euros
13th place among the top supplying countries, owning a share of 2.44% in the total imports of Romania and the 9th place among the EU member states
Romania’s imports from UK: machinery and electrical parts thereof (27% of the total imports of Romania from UK), textiles and clothing (21.4%), chemical products (16%), vehicles, aircraft and transport equipment (13.4%), base metals and articles thereof (6.4%) and plastics (5.5%).

Other economic indicators and rankings
Inflation: the rate declined in 2012, compared to the previous years
World Bank “Ease of Doing Business" ranking: Romania ranks 72th out of 183 economies. For 2012, it is down from the 65th place (in 2011) – the easiness of getting credit remained constant, while resolving insolvency improved

Reforms and legislation relevant to the Business Environment
New Labour Code
Against illegal employment (employers can go to prison for one or two years or pay a fine if they have over five employees with no contract)

New Civil Code
Changes regarding limitation periods (the period of time within which action court must be commenced)- modernising and updated, matching the dynamics of the business world, provide greater flexibility and control to parties
Regulates fiducia, a mechanism similar to some extent to the English common law concept of Trust = settlors (any individual or legal entity) transfer present or future rights to one or more trustees, with a maximum transfer period of 33 years
The support mechanism for energy from renewable sources (amended Law no. 220/2008)
-the energy produced by high-efficiency systems using renewable sources get additional green certificates
-rules on trading the green certificates and compulsory quotas

Opportunities for Foreign Companies
Oil and Gas – public offer for the state’s 9.8% shares in Petrom
Infrastructure - the government is serious in investing in infrastructure (the National Arena, the Basarab bridge etc.)
Currently, there are many tender launches, that range from the rehabilitation of wastewater networks to regional roads rehabilitation.
Additionally, 2012 will see increased external funding through the EU accession funds. In order to show commitment to a better application to European funds, a Ministry for EU Affairs/ Funding was constituted in 2011.

Source:
Romanian National Statistics Institute
UKTI
Romanian Embassy
World Bank “Ease of Doing Business”
Law Now- CMS Cameron McKenna
Romania Business Insider
 
  

BUSINESS GATEWAY - TO EUROPE - TO UK

Analysis of the Romanian economy, as a complete universe of companies and some details about who does what type of business in this country.

Q: How many companies are in Romania?
A: There were 1,498,391 companies (excluded legal persons) in Romania, in July 2012. The total Romanian business market is therefore somewhat smaller than this, considering that not all those companies are actually doing business and some of them have actually stopped their activity in the end of 2010. As a matter of fact in 2010 only 612,429 companies submitted some form of fiscal declaration to the national authorities. The vast majority of these companies are microenterprises (91.42%).

Q: What is the main type of company present in Romania?
A: The most frequent form of business is the Limited Liability Company. In terms of legal form of incorporation, 97.67% of all companies registered in Romania are Limited Liability companies, 1.38% are Shares Based companies, 0.95% is referring to other types of legal persons.

Q: How many companies are facing problems regarding their activity status?
A: In July 2012 there were approximately 530,000 radiated companies, 25,802 companies fell under the law 85/2006 and 14,805 companies went in insolvency and bankruptcy.

Q: What is the situation of companies regarding the values of debts to the state budget?
A: In Q1 of 2012, 43% of the companies registered debts to the state. 12.42% of all indebted companies owe more than 10,000 euro each, while 19.06% of them owe less than 250 euro each.

Q: What are the sectors that account for the largest numbers of companies?
A: The largest numbers of companies are trading in the Wholesale and Retail Sector (30.58%) and out of them there are 69,079 companies in Retail sale in non-specialized stores with food, beverages or tobacco predominating. Construction of residential and non-residential buildings has 27,302 companies (4.45%) and Professional, scientific and technical activities (10%).

Q: Where is business located in Romania?
A: Looking at where the active companies are registered, the country may be split in two main categories: Bucharest (the capital) and the rest of the country. Bucharest is highly disproportionate in terms of both number of companies and value of businesses. Approximately 160,870 companies are legally registered in all 6 districts of Bucharest (not counting Ilfov adjacent area) while in all other counties, the number of registered companies ranges from 31,773 in Cluj to 4,684 in Covasna.

Sources: ICAP Romania

 

Government Positions

UK GOVERNMENT CABINET	ROMANIAN GOVERNMENT CABINET
Prime Minister - David Cameron MP (Conservative)	Prime-minister - Victor-Viorel Ponta
Deputy Prime Minister - Nick Clegg MP (Liberal Democrat)	Vice Prime Minister, Minister of Regional Development and Public Administration - Liviu Nicolae Dragnea
Foreign Secretary - William Hague MP (Conservative)	Vice Prime Minister, Minister of Public Finance - Daniel Chiţoiu
Chancellor of the Exchequer - George Osborne MP (Conservative)	Viceprim-ministru - Gabriel Oprea
Secretary of State for Justice - Kenneth Clarke MP (Conservative)	Minister of Agriculture and Rural Development - Daniel Constantin
Home Secretary and Minister for Women and Equalities - Theresa May MP (Conservative)	Minister of Foreign Affairs - Titus Corlăţean
Secretary of State for Defence - Dr Liam Fox MP (Conservative)	Minister of Internal Affairs - Radu Stroe
Secretary of State for Business, Innovation and Skills - Dr Vincent Cable MP (Liberal Democrat)	Minister of National Defence - Mircea Duşa
Secretary of State for Work and Pensions - Iain Duncan Smith MP (Conservative)	Minister of Justice - Mona Maria Pivniceru
Secretary of State for Energy and Climate Change - Chris Huhne MP (Liberal Democrat)	Minister of Environment and Forests - Rovana Plumb
Secretary of State for Health - Andrew Lansley CBE MP (Conservative)	Minister of Economy - Varujan Vosganian
Secretary of State for Education - Michael Gove MP (Conservative)	Minister of Communications and Information Society - Dan Nica
Secretary of State for Communities and Local Government - Eric Pickles MP (Conservative)	Minister of Health - Eugen Gheorghe Nicolăescu
Secretary of State for Transport - Philip Hammond MP (Conservative)	Minister of National Education - Remus Pricopie
Secretary of State for Environment, Food and Rural Affairs - Caroline Spelman MP (Conservative)	Minister of Labour, Family and Social Protection - Mariana Câmpeanu
Secretary of State for International Development - Andrew Mitchell MP (Conservative)	Minister of EU funds - Eugen Orlando Teodorovici
Secretary of State for Northern Ireland - Owen Paterson MP (Conservative)	Minister of Transport - Relu Fenechiu
Secretary of State for Scotland - Michael Moore MP (Liberal Democrat)	Minister of Culture - Daniel Constantin Barbu
Secretary of State for Wales - Cheryl Gillan (Conservative)	Minister of Youth and Sports - Nicolae Bănicioiu
Secretary of State for Culture, Olympics, Media and Sport - Jeremy Hunt MP (Conservative)	Minister Delegate for the Budget - Liviu Voinea
Chief Secretary to the Treasury – Danny Alexander MP (Liberal Democrat)	Minister Delegate for water, forests and fisheries - Lucia Ana Varga
Leader of the House of Lords - Lord Strathclyde MP (Conservative)	Minister Delegate for infrastructure projects of national and foreign investments - Dan-Coman Șova
Minister without Portfolio (Minister of State) - Baroness Warsi MP (Conservative)	Minister  Delegate for SMEs, business and tourism - Maria Grapini
Minister Delegate for energy - Constantin Niță
Minister Delegate for higher education, scientific research and technological development - Mihnea Cosmin Costoiu
Minister Delegate for Relations with the Parliament - Mihai Alexandru Voicu
Minister Delegate for diaspora - Cristian David
Minister Delegate for Social Dialogue - Doina Adriana Wedge
OTHER KEY POSITIONS IN UK GOVERNMENT
Minister for the Cabinet Office and Paymastre General - Francis Maude MP (Conservative)
Minister of State Cabinet Office - Oliver Letwin MP (Conservative)
Minister of State (Universities and Science) Department for Business, Innovation and Skills - David Willetts MP (Conservative)
Leader of the House of Commons - Sir George Young MP (Conservative)
Parliamentary Secretary to the Treasury and Chief Whip - Patrick McLoughlin MP (Conservative)
Attorney General - Dominic Grieve QC (Conservative)