Thursday, January 30, 2014

Incentives for employers in Romania

State incentives for employers supporting underprivileged individuals may be considered a successful technique aiming to balance certain labour areas which were previously considered with risk. Being familiar with basic legal regulations specific for this domain becomes compulsory since we are all socially committed to integrate these persons.

According to latest changes in this area there are several categories of Romanian employees which can be considered as highly vulnerable groups in terms of employment-to-population ratio. Various programs manage this situation by imposing a set of regulations which are generally understood as consistent benefits offered to employers in order to take into consideration these underprivileged groups. We shall provide a comprehensive list of all classes of employees which are to be regarded as preferential as connected to the general need of labour market equilibrium. As expected, the most disputed category is represented by graduates who are visibly exposed because of the lack of experience. Incentives increase according to educational background and employers must not use a limited duration employment contract, they have to hire these individuals for at least 18 months. If these prerequisites are not fulfilled, the employer must repay subsidies for each individual plus the NBR’s Reference Interest Rate. Another group that is considered as highly disadvantaged refers to unemployed people who are over 45 years old.  Incentives for employers in Romania indicate that those companies hiring this specific category of individuals will receive monthly funds (equal to 1 X social reference indicator) for one year.

Unemployed single parents are as well considered as a vulnerable category and employers hiring these individuals are to receive financial stimuli. A rather particular category is represented by unemployed individuals who are able to retire in five years after being recruited. For this specific situation, employers will receive a monthly fund equal to 1 X social reference indicator till the retirement of the individual in question (with implicit specific requirements emphasizing the condition to keep hired the nominated person). Recruitment of people with disabilities is also taken into account. Employment protection in Romania builds policies in order to encourage this practice and those companies hiring individuals in this category shall receive a monthly sum equal to 1 X social reference indicator, for one year.

Latest stipulations introduce one distinctive group which concerns young people at risk of lifetime disadvantage. These are individuals, aged 16-26, already registered with the employment office in their area, part of the child welfare system or deriving from it, are persons with disabilities, have no family or their current family cannot help them, have dependent children, executed one or more custodial sentences, are victims of human trafficking. Employers hiring them are called “angajatori de insertie” and they benefit from a special treatment. These young people will have to conclude a particular contract with the National Agency for Employment and this contract is known as “contract de solidaritate”. The provided incentives for the employer are equal to the basic salary, valid when the individual is hired. This sum will be provided monthly untill the “contract de solidaritate” expires. As you can see, regulations regarding incentives for employers in Romania may prove difficult to approach and understating the legal background becomes necessary if willing to optimally function according to specified requirements. Hiring these particular categories of individuals is a benefit for both employer and society and we strongly support both sides. Our team is always available to provide any supplementary detail related to this topic.  

Wednesday, January 29, 2014

Establishing business activities for a Romanian company

Company formation procedures evidently include the identification of a primary and secondary object of activity which, in Romania, is regulated through the CAEN code system. Understanding the subtle intricacies revealed by this classification frequently determines the lucrative characteristics of a profitable business.

Any business approach which depends on establishing a company is always conditioned by the very first phase intended to decide its immediate purpose. In legal terminology this stands for confirming the principal object of activity or the primary business activity and, of course, all other secondary practices. There are several issues which need to be known by any entrepreneur who focuses on reaching the full potential of the business itself. In Romania, the system which statistically classifies economic activities is generally known as the CAEN codes. CAEN is an acronym which can be translated as “clasificarea activititatilor din economia nationala” representing an entire apparatus designed to build the foundation for preparing a large range of statistical data. The average entrepreneur is not obviously preoccupied with specific technicalities but running a business in the best possible way involves also being aware of multiple features related to NACE codes in Romania. Founding a lucrative company is always conditioned by a preparatory session supposed to establish if the primary activity to be conducted may guarantee core revenues, if this activity can be used only as primary or there is also the chance to shift it as secondary, if this feature must be used as sole and exclusive activity since the law imposes this regulation.

The primary activity of a company can play a highly important role in establishing taxes. Companies which derive their incomes from providing services related to business management consulting are to pay the standard profit tax of 16% and not the 3% income tax which applies to micro-companies. And thereby a strategic choice may help in saving some money. Certain activities may be performed only if they are indicated as principal business activities and here we can mention the temporary employment agencies. Some other companies must choose only one object of activity since they are not allowed by the law to perform any other different works and here we might add the detective agencies. These types of companies must also obtain some specific authorizations and licenses from the Trade Register.

The NACE codes in Romania provide a unique choice for the main business activity which means that each company has the opportunity to pick one single principal object which must be appointed when founding the enterprise. The secondary business activities come to deliver alternatives for certain establishments which intend to vary their performances. Establishing business activities for a Romanian company supposes the CAEN code registration which is not a demanding task but it might reveal certain ambiguities. It becomes essential to benefit from quality assistance while incorporating. Legal help widens perspectives and explains all possible options. Our team is always available for any disambiguation and we are committed to simplifying procedures implied by the company creation process. Understanding the economic climate and being closely familiar with each and every aspect concerning the legal system in Romania provides us with a comprehensive view on all features related to corporate and commercial issues. 

Friday, January 24, 2014

Registering as a sole trader in Romania

The Romanian individual enterprise functions at a specific routine that must be explicitly illustrated. Understanding the legal apparatus behind this structure becomes an essential condition for the financial success of each business project.

Among options that the Romanian law provides for small business alternatives we would like to mention as well the sole proprietorship. Being included in a particular category and frequently raising various types of questions, this specific form of enterprise has an almost similar profile to what is known as the Romanian authorized physical person. Starting a sole proprietorship in Romania clearly implies the fact that you have chosen a small-scale economic activity which allows a more individualistic approach. Setting up a business in Romania according to this particular framework comes with certain duties that must be fulfilled. Probably one of the most important features relates to providing a document which proves the fact that you are professionally trained for the activity that you will conduct.

Setting up a Business in Romania – documents needed for establishing a sole proprietorship

Documents which must be provided in order to establish the sole proprietorship (in Romania called Intreprindere Individuala) include a copy of the identity card, papers offering information related to your professional training, a bailment contract, a document proving the fact that you are certified to use the future registered office, a specimen signature, evidences that taxes were paid. The main steps to be followed, for starting a sole proprietorship in Romania, indicate as an initial phase the reservation of the name. In order to check the name availability you will have to submit a request to the National Trade Register (ORCT). In the same day you will be provided with the result that must be added to the file which is to be submitted in order to open the sole proprietorship. The name of the company has the same structure as that imposed for PFA meaning the name and surname of the owner adding as well the collocation “intreprindere individuala”.

The sole proprietorship structure allows hiring employees and cooperation with other entrepreneurs avoiding to change the legal status of the entity itself. Starting a sole proprietorship in Romania involves a particular tax regime which applies to this unique framework. The owner must pay the state income tax and the social security contributions required by the public pension system and the health bureaucratic apparatus. If employees with individual employment contract are to be hired than all taxes connected with an optimal function of the agreements must be paid. The income tax is determined by taking in account the 16% rate. The basis for calculating the income tax is to be established according to the system chosen by the payer: the real system or at income norm. Tax returns are to be explained by a professional and that is why our experts support the approach that always involves the certified legal help. Asking an expert’s opinion completely changes the perspectives, accurately emphasizing significant details and also introducing the possibility of identifying another alternative for your business plan. Setting up a business in Romania may become an effortless approach when benefitting from the appropriate legal assistance which is able to simultaneously secure the overall investment. 

Monday, January 20, 2014

Romanian State Aid Schemes for Foreign Investors

State aid can actually represent a solid alternative for foreign investors and understating procedures related to this area becomes mandatory. Applying for these financial supports means following strict regulations and benefiting from professional help is a plus for any approach of this kind.

Foreign investments in Romania clearly focuses on several main areas such as IT, agriculture and the highly competitive domain of externalized services, still delivering plenty of alternatives in various other areas which might not be as popular as those mentioned above but deserving attention and a solid professional business approach. In order to provide a coherent support for such cases the Romanian state aid schemes for foreign investors were adjusted through the Government Decision no. 955/2013 which was included in the Official Gazette no. 764 on December 9, 2013. These stipulations come to extend the terms of the Government Decision no. 797/2012 until June 30, 2014 providing new alternatives for investing authorities willing to apply for state aid in Romania. Recent changes also operate as a budget increasing measure adding an extra financial boost of 35 million Euros. The main goal of this provision is to secure regional development for the time interval between 2013 – 2020. Beneficiaries of these funds will have to create at least 200 new jobs with a minimum rate of 20% for the IT&C component guaranteed by the investment plan.

Financial Support for Foreign Investment in Romania - conditions

As we previously mentioned in our articles, financial support for foreign investment in Romania implies the responsibility to introduce a number of new jobs and also to maintain these positions. Features such as profit tax and social security contributions are duties that must be respected since, for the next five years after implementing the project, activities shall be closely supervised. Procedures to be followed specifically sustain the importance of the letter of bank guarantee which plays a distinctive role for a repayment instance. After submitting this letter the fund will be paid out. Even if understood as an implicit detail, the incipient phase of the business approach involves a consistent financial basis to cover expenses occurring till requesting the state aid. There are particular stipulations for those projects having a bank financing backing implying a set of specific documents which must be submitted.

Legal counseling during the implementation of such a project is definitely a condition for financially securing the investment. Romanian state aid schemes for foreign investors are controlled through a highly intricate bureaucratic apparatus that requires a professional approach able to point out immediate moves and possible vulnerabilities. Romania is also a country where sudden fiscal changes might confuse and an expert up-to-date with latest legal interventions offers a substantial assistance on this point. Understanding operational costs and benefiting from the cooperation of highly skilled professionals, effectively informed in matters concerning the typical administration tools, enlarge the perspectives for these approaches.  Programs offering financial support for foreign investment in Romania may also provide alternatives for areas less explored by international investors, the presence of an expert familiar with local opportunities becoming even more predictable. Our team is strictly acquainted with the most efficient strategies to be taken into account when applying for such an aid. We are deeply concerned with any feature that might impact the normal development of the project itself and our lawyers identify best alternatives suiting the needs of any business.

Monday, January 13, 2014

Legal Support for Real Estate Investing in Romania

The real estate market in Romania may be considered as one of the most challenging investment environments and approaching this area involves profound understanding of legal terms regulating dynamics for this particular field

Our clients involved in complex commercial real estate projects are permanently dealing with juridical technicalities that play essential roles for various phases of the business development plans. In order to be as accurate as possible and as well being concerned with creating a complete image of all legal aspects involved in such approaches, our team focused on bringing together the basic law proceedings that closely regulate the juridical coherence implied by real estate investing in Romania. Conducting preliminary due diligence audits, managing the transaction itself, identifying possibilities for financial support, writing contracts, subcontracts – all these stages in a real estate development process require precise attention to law stipulations that handle procedures for such cases.

Real Estate Development in Romania – basic regulatory framework

The general legal format that manages most features regarding the real estate development in Romania involves terms described by the Law no. 50/1991 which provides the legal background for authorizing the construction works and some other juridical matters regarding implementation of provisions. This is actually our primary concern when introducing a new client to various features regarding real estate development projects: explaining basic functions of this specific law. Even if these are standard procedures that involve issuance of urban planning certificate and building permits and as well conducting evaluation programs able to illustrate the impact on the environment, we are still strictly approaching it due to its vastness and also to its regulatory fundamental character. The urban planning certificate has to be provided before the building permit since it contains a wide range of details regarding mandatory permits, landowners’ rights, surroundings and some other aspects related to the technical part of the building project. We are also drawing attention to particular features that might be interfering as a result of some specific traits characteristic for each project.

More specific legal terms related to real estate development

Apart from the Law no. 50/1991, real estate investing in Romania involves some legal features provided by the Law 190/1999 which offers the needed stipulations related to mortgage loans intended as an exceptional rule for encouraging business approaches in this filed. This particular legal tool comes as a second alternative for real estate development in Romania since it provides a juridical template for obtaining a mortgage loan, it explains the role of authorities able to finance such projects, the conditions imposing to list the mortgage in the Land Book. This law also comes with essential details regarding the chance of negotiation of the value of the interest rate and also the dynamics of mortgage receivables. Some other legal stipulations offer supplementary features regarding the energy performance certificate which must be used when buyers request such a paper and also the functionality of the insurance agreements. We are simply pointing out some regular legal elements that should offer a more informative perception on what real estate investing in Romania really means in terms of legal approach. Our lawyers are perpetually improving strategies and manage to identify optimal ways of dealing with such aspects but our main interest is to always maintain a transparent connection with our clients and that is why we want to deliver all needed support when it comes to very specific characteristics in the Romanian legal system. For any further legal technicalities our team is available to come with more elaborate statements.

Friday, January 10, 2014

Best investing ideas for 2014 – organic farming in Romania

The ecological agriculture concepts strongly evolved in the past 20 years providing countless business opportunities and ensuring strong financial confidence in areas such as Romania, which is still discovering the economic potential

Being constantly engaged in identifying most effective solutions for our clients interested in lucrative investment opportunities, we managed to establish several distinct areas that are able to come with a solid guarantee in matters of financial security. Our purpose was as well to focus on domains that deliver trustworthy answers regarding new technology and current status of environmental policies. Since Romania is a territory which progressively brings to light its unexplored potential, everything came naturally offering multiple segments where new economic trends had the chance to stand out. Ecology occupied a large sector during the last several decades introducing challenging issues and drawing attention to options that were apparently ignored from various reasons.

Strong grounds to invest in Romanian ecological farming

In Romania, the ecological conscience developed under the influence of international tendencies or driven by uncountable opportunities that surprisingly distinguished themselves when establishing a fluent approach for ecological entrepreneurship. One of the most dynamic fields and easy to be rehabilitated can be considered the agriculture area because, under the communist regime, this represented a highly developed industry and due to the fact that different soils in here can be used for a large variety of crops. Organic farming in Romania significantly developed as a result of the introduction of financial supports provided to farmers who were encouraged to adopt the ecological agriculture principles starting with 2010. The local market modified preferences as well understanding the significance of the bio products. Still, the most important feedback comes from the international markets which were gradually introduced to Romanian organic products brands.

Our strategy to help you in developing your business

The decision to invest in Romanian ecological farming is also supported by the EU objective to pump up 200-million EUR funds for the next seven years. Government intends to adjust a set of fiscal maneuvers to sustain the overall approach.  There are 400,000 hectares which were authorized for organic farming in Romania and more than 80% of all products are merchandised abroad. Initiating procedures to start a business in this area might seem a little bit too elaborate and that is why our team designed an optimal approach able to substantially reduce ambiguities at legal and financial level. Our lawyers strictly evaluated opportunities and vulnerabilities when deciding to invest in Romanian ecological farming; furthermore, we established clear guidelines regarding the purchase of land process, documents needed for all phases of the business development, future legal duties that a foreign investor has in Romania and all other financial procedures that must be taken into consideration in order to profitably improve the potential of the project. Our team closely examines each business plan to come with valid suggestions, to emphasize any possible alternative and to steadily secure the investment. We are enthusiastically accepting any challenge and explain risks for guaranteeing best possible services.

Wednesday, January 8, 2014

Open an IT company in Romania

A continuously developing area in Romanian industry is undoubtedly represented by the IT sector. A set of fluently argued details prove that this investment option comes with numerous benefits and it constantly provides opportunities for revolutionary approaches. Even if being economically unbalanced Romania managed to keep efficient standards for higher education achieving to surpass expectations in this area. As the present IT&C market reveals, specialists in this field are trained in Romania in accordance with the latest technological novelties partly because of their natural enthusiasm regarding scientific evolvement and also due to their capacity of coping with most recent adjustments performed in this field. In order to open an IT company in Romania, there are two important specific aspects to be brought to foreign investors’ attention. One regards the importance of seeking the legal opinion of an authorized person and the other concerns the high-utility of an accountant able to handle all financial intricacies and as well to explain particularities in the Romanian system. The presence of a lawyer will clearly help in establishing the type of company that an investor should choose in order to cover all fundamental business goals. Deliberating between the SA type and the SRL type involves a rather specific approach, which may point out exact characteristics for every kind of company. Given the fact that the IT&C sector offers such a generous perspective for foreign investors, it becomes mandatory to secure all other features describing the business functionalities. Standard procedures followed to open a company in Romania regard several basic phases: reservation and verification of the company name accessibility, opening of a bank account in order to prove financial sustainability, company registration with the Trade Register, registration for VAT and registration of employees’ contracts with the labor authority (Territorial Labor Inspectorate).

Technology investments in Romania - main areas of development

As mentioned from the beginning of this article, the highly skilled IT&C specialists in our country can sustain even the least conventional technological approaches but there are several domains which proved, till the present moment, as highly lucrative perspectives. So if interested to open an IT company in Romania investors should be informed about most popular areas that already possess continuity in this perimeter. According to latest data the highly preferred areas in the IT sector generally regard computer technical support, technical help desk, network technical support, computer electronics, telecommunications, LAN/WLAN communications, network design, ASP.NET, HTML, PHP and web development. Apart from these already typical choices we would like to call attention to some other important qualities of specialists in this area. Most Romanian IT&C specialists are fluent in English and, at least, in another international language. Important to be mentioned it is as well their genuine ability to conduct each project with creativity and self-awareness. Being internationally recognized as highly competitive and capable of adapting to most challenging tasks, experts in this area surely represent the main reason for investing in this field but this is not the singular purpose for taking in account the option of investing in the IT&C domain. That is why our team of lawyers accurately provides a full perspective on technology investments in Romania, explaining circumstantial benefits and possibilities of receiving incentives, always guaranteeing legal assistance during the entire process of company formation.  

Monday, January 6, 2014

Start a Construction Company in Romania

This process follows, commonly considered, standard procedures and business approaches involving such an operation shall be appropriately taken into account, from the legal point of view. Under certain circumstances, there are some particular features that may occur or could be understood as adjacent options that must be seen as mandatory details which are to be performed as key bureaucratic actions. As most enterprises in our country, the building companies in Romania may be of two different types: either limited liability companies (SRL) or joint stock (SA) ones. According to specific conditions you may decide together with a lawyer on what type of company suits your investment better. Regular procedures also include establishing the name of the company, number of partners, the registered office address or the main and secondary object of activity. In order to start a construction company in Romania a highly important part is represented by the decision indicating the main and the secondary object of activity. Given the fact that it concerns such a large variety of activities, the building domain is legally approached from a wide range of professional perspectives all naturally related to constructions. The NACE codes (cod CAEN in Romanian) provides different options regulating the technicalities in this area.

Building Companies in Romania – legal technicalities

The F section in the NACE codes lists all possibilities connected to object of activities in the construction field. There are general and more specific alternatives corresponding to civil engineering, construction of buildings or specialized construction activities. The object of activity may regard development of building projects, construction of residential and non-residential buildings, construction of roads, railways, utility projects, other civil engineering projects, demolition and site preparation, building completion, finishing and other more explicit activities common for the building field. Another particular chapter concerning this topic deals with obtaining the necessary permits and licenses. Fiscal matters are also to be regulated in connection with main features describing the type of company and also the legal stipulations of the Romanian law. We are strongly encouraging our clients to previously seek professional advice. An authorized legal opinion is able to point out important steps in the creation process of building companies in Romania. Establishing the statuary documentation such as by-laws or article of association plays a highly important part for an optimal functionality of the company itself. It is necessary to understand the real significance of the intervention of a legal authority. The presence of a lawyer familiar with technicalities related to company formation procedures certainly guarantees a lucrative approach which entirely secures the overall investment. The construction field introduces as well some future legal tasks which deal mostly with due diligence audits which must be conducted in order to evaluate various projects. Apart from the due diligence processes a coherent development of a building company in Romania comes with circumstantial judicial matters relating to the specific object of activity and also to the projects chosen by the company, explaining in this manner the need of an authorized legal opinion. The lawyers at Darie, Manea & Associates may provide the help in order to start a construction company in Romania offering all details and additional information required by the client.