• With a GDP growth rate of 8.3% in 2004, Romania is today one of the most dynamic countries in
  Europe.
• With a population of 22.5 million, Romania is the 2nd largest market in Eastern Europe after Poland.
  The domestic market offers numerous opportunities, particularly in the service sector.
• With approximately 10 million people, the Romanian labour force is abundant. Moreover, labor is
  inexpensive, the average gross wage being around EUR 200 / month.
• Finally, Romania's future entry into the European Union, expected for 2007, should facilitate market
  liberalisation and create numerous prospective opportunities for foreign investors.
  
  

Since December 1997, the Government has created a new regulation which guarantees equal treatment
for all types of investors by offering foreign investors the same advantages as those granted to local ones.
Romanian legislation includes principles of equal treatment for foreign investors, the non-interference
of the Government, free access to all the sectors of the Romanian economy, and the full distribution of
capital and benefits after taxation.

It is important to note, however, that direct investments in land continue to be forbidden to foreign
investors (this interdiction will be progressively withdrawn once Romania joins the European Union).
Nevertheless, this does not prevent foreigners from acquiring land through an "ad hoc" Romanian
company.

Depending on the desired degree of development and involvement, foreigners are able to become active
in the Romanian market under the following forms :

• By creating a new commercial company, which facilitates the development on the Romanian market.
  In practice, the most privileged forms of a company for foreign investors are subsidiaries, created as a
  Limited Liability Company (SRL), due to its functional flexibility, or the Joint Stock Company (SA).
• Representative Office.
  
  

• Since January 1st, 2005, the unique income tax rate is 16% (this rate is equally applied to income tax
  and to corporate income tax).
• The tax rate for dividends obtained by Romanian residents, irrespective of their legal form, is 10%. The
  tax on dividends for non-residents is 15%.
• The tax on micro-enterprises (firm with a maximum of 9 employees and whose turnover is below EUR
  100,000) is 3% of income (turnover). However, these companies can choose to pay 16% of their
  profit.
  
  

• The standard working week is 40 hours and can be extended to 48 hours.
• The minimum (weekly) wage enforced at present is of RON 310, which is the equivalent of approximately
  EUR 85 for 40 hours per week. The average monthly wage in September 2004, according to
  INSEE, was of RON 821.41, approximately EUR 227.
• Foreigners, European Union countries residents and members of the European Economic Space who
  reside for more than 90 days over a 6-months period, must obtain a temporary residence permit in
  Romania. A work permit is required for all foreign citizens looking for employment in a Romanian
  company.
• Income tax and social charges are withheld at source.
  
  

• The National Bank of Romania (BNR), which publishes an official reference exchange rate for Leu
  (RON - Romanian New Leu) on a daily basis.

• The Commercial Banking Companies, which can undertake (within the limit of the authorisation
  granted to them) standard banking activities ( such as deposits, credits, issuing and guaranteeing
  payments and credit instruments, making transactions on their own account or on customers
  accounts…)