Business Reforms in Romania
= Doing Business reform making it easier to do business. = Change making it more difficult to do business.
Registering Property: Romania improved the quality of land administration by digitizing ownership and land records.
Starting a Business: Romania made starting a business more difficult by increasing the time to register for Value Added Tax.
Paying Taxes: Romania made paying taxes less costly for companies by reducing the rate for social security contributions and the rate for accident risk fund contributions paid by employers.
Enforcing Contracts: Romania made enforcing contracts easier by transferring some enforcement responsibilities from the court to the bailiff, by making it easier for the bailiff to obtain information from third parties and by making use of the electronic auction registry mandatory.
Resolving Insolvency: Romania improved its insolvency system by introducing time limits for the observation period (during which a reorganization plan must be confirmed or a declaration of bankruptcy made) and for the implementation of the reorganization plan; by introducing additional minimum voting requirements for the approval of the reorganization plan; and by clarifying rules on voidable transactions and on payment priority for claims of post-commencement creditors.
Paying Taxes: Romania made paying taxes easier for companies, with the majority now using the electronic system for filing and paying taxes.
Starting a Business: Romania made starting a business easier by transferring responsibility for issuing the headquarters clearance certificate from the Fiscal Administration Office to the Trade Registry.
Paying Taxes: Romania made paying taxes easier and less costly for companies by reducing the payment frequency for the firm tax from quarterly to twice a year and by reducing the vehicle tax rate.
Enforcing Contracts: Romania made enforcing contracts easier by adopting a new civil procedure code that streamlines and speeds up all court proceedings.
Starting a Business: Romania made starting a business easier by reducing the time required to obtain a clearance certificate from the fiscal administration agency.
Getting Credit: Romania strengthened its legal framework for secured transactions by allowing the automatic extension of security interests to the products, proceeds and replacement of collateral.
Starting a Business: Romania made starting a business more difficult by requiring a tax clearance certificate for a new company’s headquarters before company registration.
Paying Taxes: Romania made paying taxes easier for companies by introducing an electronic payment system and a unified return for social security contributions. It also abolished the annual minimum tax.
Resolving Insolvency: Romania amended its insolvency law to shorten the duration of insolvency proceedings.
Labor Market Regulation: Romania increased the maximum duration of fixed-term contracts and also decreased the severance pay applicable in case of redundancy dismissal of employees.
Dealing with Construction Permits: Romania amended regulations related to construction permitting to reduce fees and expedite the process.
Paying Taxes: Romania introduced tax changes, including a new minimum tax on profit, that made paying taxes more costly for companies.
Resolving Insolvency: Substantial amendments to Romania’s bankruptcy laws—introducing, among other things, a procedure for out-of-court workouts—made dealing with insolvency easier.
Dealing with Construction Permits: Romania made dealing with construction permits more costly by introducing a new fee.
Registering Property: Romania speeded up property registration by introducing expedited procedures at the land registry and the cadastre.
Paying Taxes: Romania made paying taxes more costly for companies by increasing labor taxes.
Resolving Insolvency: Romania made resolving insolvency more difficult by requiring that a percentage of recovered amounts be transferred to a fund for reimbursing the expenses of insolvency administrators in cases where the debtor has no assets.
Paying Taxes: Romania made tax compliance more time consuming for companies by introducing mandatory accounting books—though at the same time it made paying taxes less costly by reducing the corporate income tax rate.
Enforcing Contracts: Romania made the enforcement of judgments simpler and faster by eliminating the need for an enforcement order and allowing the attachment of credit balances and accounts receivable.
Starting a Business: Romania made starting a business more difficult by implementing several laws that added to the procedures and time required.
Getting Credit: Romania strengthened its secured transactions system by introducing provisions allowing parties to a security agreement to agree to out-of-court enforcement of the security right when signing the agreement.
Paying Taxes: Romania made paying taxes less costly for companies by reducing employers’ social security contribution rate.
Labor Market Regulation: Romania increased the severance payments applicable in redundancy dismissals.