ABOUT ROMANIA

Amongst all the countries in the European continent, Romania is a mid-sized country by area and the 6th biggest country in the European Union in terms of population. The capital of Romania is Bucharest which is the highest populated city in the country. According to the report of the World Bank, Romania has been classified as a High-Income Economy. The currency of Romania is Romanian Leu (RON) and the value of Indian currency is approximately five times that of Romanian Leu at the time of writing this article. The population of Romania is 1.91 crores as of 2023. The neighbouring countries of Romania are Hungary, Serbia, Bulgaria, Ukraine, and Moldova. The most commonly spoken language in the country is Romanian. The majority of the Romanian population practices Orthodox Christianity, but other religions such as Catholicism, Protestantism, and Islam are also followed. Currently, there are 16 International Airports in Romania and regular flights are available from these airports to several parts of the world. The air connectivity of Romania is very convenient. As the Black Sea is on the border of Romania, several commercial seaports in Romania fulfill the trade requirements of the country. A lot of goods and resources are imported and exported through the seaports of the country.

The corporate income tax rate for most companies in Romania is 16%. For micro-enterprises, a preferential tax rate of 1% or 3% applies depending on the number of employees and annual turnover. Opesh Group of companies will be helping you in completing the Due Diligence process which includes financial planning, registration process, business options, and if required, even helping you find a Rental property for your office.

Establishing a business in Romania has to be done with utmost care keeping in mind the laws of the country. The Romanian Company Law (Law no. 31/1990) and subsequent regulations have clearly stated how a foreign investor can register a company in Romania. A foreign investor who is planning to start his business in Romania can form many different companies and types in the country such as SRL (Limited Liability Company), SA (Joint Stock Company), General Partnership, and Limited Partnership. A Limited Liability Company (SRL) formed and registered in Romania allows the foreign investors to own 100% of the company.

In case an investor is planning to establish an SRL in Romania or a Joint Stock Company business setup, Opesh Group will be helping you in taking the right decision for setting up your business in Romania and we will also guide you about how to follow the procedure while formulating your company in Romania.

Types of Business which can be started in Romania-

Information Technology (IT) – Romania has a highly skilled and educated workforce in the IT sector, especially in software development and outsourcing. The government also supports the growth of this sector through various incentives. This makes it a very attractive market for investors looking for good returns.

 Automotive Industry – Romania has a well-established automotive industry, with major international car manufacturers having production facilities here. This sector offers significant opportunities for component manufacturing, R&D, and related services

.Agriculture – Romania possesses vast fertile agricultural lands, and agriculture contributes significantly to the country’s economy. There are opportunities for investment in modern farming techniques, organic farming, food processing, and export of agricultural products.

 Tourism – Romania boasts diverse landscapes, from the Carpathian Mountains to the Black Sea coast, historical cities, and unique cultural heritage. This attracts a growing number of tourists every year. There are opportunities for developing accommodation facilities, ecotourism, adventure tourism, and cultural tourism. 

Renewable Energy – Romania has significant potential for renewable energy sources, particularly wind and solar. The government is actively promoting investments in this sector to meet EU targets and reduce reliance on fossil fuels.

 Healthcare – The healthcare sector in Romania is undergoing modernization and development. There are opportunities for investment in private clinics, hospitals, medical tourism, and pharmaceutical distribution.

 Infrastructure – Romania is continuously developing its infrastructure, including roads, railways, and utilities, supported by EU funds. This offers substantial opportunities for construction companies and investors in large-scale infrastructure projects. Manufacturing – With a competitive labor force and strategic location, Romania is an attractive destination for manufacturing various goods, including machinery, textiles, electronics, and consumer products. 

Advantages of Starting Business in Romania-

Romania is a member of the European Union, which provides access to the vast EU single market, free movement of goods, services, capital, and labor. This opens up immense trade and business opportunities for investors. Romania has a strategic geographical location at the crossroads of Central, Eastern, and Southeastern Europe, acting as a gateway to various markets. Compared to many Western European countries, Romania offers a competitive cost of doing business, including lower labor costs and operational expenses. The workforce in Romania is well-educated, skilled, and multilingual, especially in technical fields, making it easier to find qualified manpower. The government of Romania has implemented various incentives and support programs for foreign investors, including state aid schemes, tax breaks, and EU funding opportunities. Romania has a stable political and economic environment, providing a secure ground for long-term investments. 

Business Opportunities for Indians in Romania-

There are excellent business opportunities in Romania for new investors who are planning to start their business abroad and are looking to start their business in a foreign country. Romania has opened its doors for foreign businesses and foreign investors. In Romania, there are vast business opportunities for investors who are planning to start their business abroad. They can invest in IT, manufacturing, automotive, and infrastructure sectors. In all these sectors, there has been a huge boom and existing investors who have already invested in this sector have earned a lot. While the automotive and IT sectors are well-established, there are also less touched sectors with immense potential that can not only open new doors for investors but also yield good ROI.

Imports & Exports-

Many goods are imported and exported from Romania. Imports and exports business is an ever-growing business in any country; however, you need to do proper R&D before investing in that product which you can import or export. You need to check whether that product is suitable for your target market and how much revenue you will be able to generate from that market.

Major items which are exported from Romania to India-

Machinery and mechanical appliances Electrical equipment Iron and steel products Automotive parts Plastics and rubber Major items which are imported in Romania from India-

Pharmaceutical products Textiles and apparel Organic chemicals Mineral fuels and oils Machinery and mechanical appliances Manufacturing-

Many products are imported to Romania from different countries which is why many investors have started setting up their manufacturing plants in Romania. Investors have started setting up their companies in sectors such as automotive components, electronics, machinery, and textiles.

IT and Software Development-

Romania is a hub for IT outsourcing and software development. Indian IT companies can find a highly skilled workforce and competitive costs to set up development centers or collaborate with local firms.

Healthcare and Pharmaceuticals-

With a developing healthcare sector, there are opportunities for Indian pharmaceutical companies to enter the Romanian market through manufacturing, distribution, or partnerships.

Major Indian companies which are currently working in Romania-

Wipro (IT Services) Infosys (IT Services) Ramco Systems (IT Services) Apollo Tyres (Manufacturing) Dr. Reddy’s Laboratories (Pharmaceuticals)

GDP = $348.7 billion (as of 2023, estimated) GDP Growth = 2.4% (as of 2023, estimated) Ease of doing business rank = 55 (as of 2020, latest available) GDP per Capita = $17,980 (as of 2023, estimated)

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