Wednesday, March 26, 2014

Chinese Investments in Romania

As a Romanian Law Firm with over 90% of our clients being foreign business people expanding their business operation in Romania, we are very interested in the recent developments related to the expected Chinese investments in Romania. It remains to be seen how much of these investments will actually materialize, however the plans are certainly interesting enough. 
Chinese investors are looking to build a high speed rail link via Bucharest to Constanta as well as modernize rail way tracks around Bucharest. The Romanian side wants rapid rail line to be built from scratch and not rebuild the existing tracks. 
The Romanian Prime Minister Dragnea, located in China, said that he met with the leadership of Industrial and Commercial Bank of China, which he has proposed to open a subsidiary in Romania.  Chinese bank representatives have reported that, in principle, agree with this idea.
"We had a meeting with the Industrial and Commercial Bank of China, the largest bank in the world, with a capital of three trillion dollars. I asked the Chinese bank to open a branch in Romania and they told me that in principle they agree, which for us is very important, "said Dragnea. The bank's representatives have shown interest to financially support investment in Romania.
For any information related to investing in Romania please see our related articles:

Brief Information on why one would invest in Romania

The following article published on our main website offers 7 reasons why an investor would start doing business in Romania, respectively:
1. Advantageous geographical location for transportation of goods
2. A large number of natural resources
3. Low Corporate Taxes and a large number of Double Taxation Treaties
4. Low Costs for Business Operations
5. Foreign languages spoken on a large scale
6. Large number of different types of specialists
7. General openness to foreign investors
You can see the entire article here.

Tuesday, March 18, 2014

Investing in Romanian Agriculture

Investing in Romania's enormous agricultural potential is definitely a good idea, and the latest figures seem to agree with us: the export of Romanian agricultural products has double in the recent years. According to Mediafax, last year exports of agricultural products were 5,1 billion, exceeding imports with 300 million. Exceptional was the evolution of exports of the last six years. From about one billion euros in 2007 to 5,1 billion euros in 2013. At this time there is no other industry that increased five times in six years!

In the same period , Romania's exports have doubled from 25 billion to 50 billion euros , which means that the share of exports of agricultural products doubled in this period a total of 4 % to 10 % .

The € 5.1 billion exports last year were obtained on the basis of doubling exports of wheat ( 1 billion euros , 4.7 million tons ) and a significant increase in exports of maize ( 700 million) , Sunflower sun (600 million euros), barley and rapeseed (400 million euros) .

In total, gross grain exports means 2.7 billion euros. 's Next top exports of sheep and goats ( 150 million) , cattle ( 130 million euros) and poultry ( 140 million euros).

In total, exports of grain and livestock means 3.2 billion euros, or two thirds of the 5.1 billion euros in 2013.

It should be noted , however, that we have a substantial increase in processed food , even if the values ​​are low now  at this time (these were even lower in the past).

Our law firm has important experience in matters related to purchasing Romanian agricultural land, performing a due diligence procedure before the purchase, reviewing or drafting sale/purchase agreements, notary procedures etc. Please contact us right now for further information related to these aspects.

How to reserve a company name in Romania

We recommend the following article on to find out how to reserve a company name in Romania quickly and avoiding any potential problems.

For any other issues related to the formation of a Romanian company please contact us!

Wednesday, March 12, 2014

Partner Lawyers in Turkey

Romanian Law is has many collaborations with overseas partners, including Turkey. These have provided the following information on how a foreign investor in Turkey can avoid double taxation.

Foreign investors who run a business abroad have to pay taxes in their country of residence and in the state where they have registered the company if there is no double tax treaty signed between the two countries. In order to avoid the double taxation of their profits, the foreign citizens should choose for opening a company a country which already signed a double tax treaty with their state of residence.
Turkey has signed this kind of treaties with a lot of countries: Albania, Algeria, Azerbaijan, Austria, Bahrain, Bangladesh, Belarus, Belgium, Bosnia and Herzegovina, Bulgaria, Canada, China, Croatia, Czech Republic, Denmark, Egypt, Estonia, Ethiopia, Finland, France, Georgia, Germany, Greece, Hungary, India, Indonesia, Iran, Israel, Italy, Japan, Jordan, Kazakhstan, Korea, Kuwait, Kyrgyz Republic, Latvia, Lebanon, Lithuania, Luxembourg, Macedonia, Malaysia, Moldova, Mongolia, Montenegro, Morocco, New Zealand, Norway, Oman, Netherlands, Northern Cyprus, Norway, Pakistan, Poland, Portugal, Qatar, Romania, Russia, Saudi Arabia, Serbia and Montenegro, South Africa, South Korea, Singapore, Slovakia, Slovenia, Spain, Sudan, Syria, Sweden, Tajikistan, Thailand, Tunisia, Turkmenistan, Ukraine, United Arab Emirates, United Kingdom, Yemen, United States of America and Uzbekistan.
In the future, there will be other double tax treaties to be signed. Due to these treaties, the foreign investors are exempt from paying the taxes for the income and the capital for companies that are already paying the taxes in the parent country of the investor. The foreign entrepreneur should present a proof of the fact that he pays the taxes in one country in order to be exempt from the fiscal obligation in Turkey. He must present a certificate of taxation from his country of residence and an application.

The foreign investor can ask for a refund after he paid the taxes in the two countries, if he has a proof of the fact that he paid double taxes.

If you need more information about the taxation, you can ask our lawyers  ( in Turkey who provide a wide range of legal services to international clients interested in setting up a company in this country.

Wednesday, March 5, 2014

A Short Guide on Company Acquisition in Romania for 2014

For those foreign investors looking to purchase shares in already existing Romanian companies (such as shelf companies for instance) please see our law firm's guide in this matter:

The article contains information on procedure, timeframes, costs, taxation and even basic wording of the Share Transfer Contract.

Monday, March 3, 2014

No changes in Romanian Taxation for 2014

Our Law Firm can only salute the Romanian Government's confirmation that the flat 16% corporate and individual tax will not change in 2014. This at least means some fiscal stability (at least in this area) and less unwanted surprises for foreign investors in Romania.

The Romanian Government claims not to introduce this year the so-called "solidarity" tax on high incomes and no differential tax rates for individuals (natural persons), says PM Victor Ponta.
Ït is important to note that this year we do not want to change any tax system and not make any increase in the 16% tax (flat tax for both companies and individuals) . Unfortunately, we cannot, at least in 2014 , perform the changes related to rates of 8% and 12 % for those with low income, for the budget is already done. We will do certainly do this in 2015".

In Fiscal Strategy 2014-2016 , approved last year by the government and parliament , says , in the chapter on " Trends of major taxes on the horizon 2014-2017 " , it is intended to " introduce differentiated tax on wage income tax deductibility odds 8%, 12 % and 16 % which will be determined on a certain grid and Social Insurance significant reduction of 5 percentage points since July 2014."

For further information on Romanian taxation please see our article: Paying Taxes in Romania: