Red Tape In Romania Keeps Foreign Investors Away – Law Firm
Many foreign investors choose to discard their business plans in Romania over excessive deadlines for registration with the National Trade Registry Office ONRC, which can take up to one year, according to representatives of Bucharest-based law firm Enescu&Cuc.
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Red Tape In Romania Keeps Foreign Investors Away – Law Firm
"Thousands of foreign companies or natural persons willing to set up businesses and invest in Romania find it very hard to set their business plans in motion over the blockage at the Trade Registry Office in recent months. Many investors end up discarding business plans, as the setting up of a company takes at least one month and any alteration or operation in the structure of a company takes almost one year," a press release of law firm Enescu&Cuc read.
They said the blockage at the Trade Registry caused by the strike in the legal system a few months ago led to a situation in which any operation in the structure of a company, including the expansion of the company's shareholding structure, share capital hikes or relocation into new headquarters, cannot be done earlier than late 2010.
The losses triggered by this situation could exceed tens of millions of euro, considering that nearly 400 applications, which involve various operations, are registered at the Trade Registry on a daily basis, the press release also read.
It also said that, currently, no company in Romania can attract money from foreign investors, because they find themselves trapped in the Trade Registry bureaucracy.
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