Romania: Business Environment

Accounting Rules

Tax Year

The fiscal year begins on January 1 and ends on December 31. A system of quarterly payments in advance taking into consideration the corporation tax calculated for the previous year is applied for companies.

Accounting Standards

Romaninan accounting standards follow the Forth and Seventh EC directives. IFRS also is accepeted as a second set of financial statements, but only for certain companies.

Several laws governing accounting principles and standards in Romania:
- The Ministry of Economy and Finance: Order No. 907/2005; Order No. 1752/2005; Order No. 1121/2006; Order No. 2001/2006
- National Ethics Code for the accounting profession
- Regulation No. 1606/2002 by the European Parliament assembly of 19 June 2002 on the Application of International Accounting Standards

Accounting Regulation Bodies

Institute of Chartered Accountants of Romania

Accounting Reports

Bookkeeping records are divided into credit and debt, the latter being broken up into long-term and short-term debts.
The results give emphasis to the overall production and classifies expenses by type.

Publication Requirements

Romanian businesses are asked as well as foreign companies with corporate names registered in Romania, to organize and conduct their own accounts including the preparation of annual as well as periodic financial reports. The Romanian Ministry of Public Finance's law No. 1752/2005 stipulates that all companies preparing simplified financial statements(simplified balance sheet, income statement and notes which explain the details of the financial report) and that only companies which have exceed the following criteria over two consecutive years or more must prepare a comprehensive annual financial report (balance chart, income statement, account statements, changes in shareholders, explanatory notes to accompany the financial report):
- Total balance: 3,650,000 EUR
- Net annual sales figures: 7,300,000 EUR
- Average number of employees during the accounting year: 50  

The parent company is exempt from consolidating financial reports, if on the date of the financial statement, the entities which must be consolidated do not exceed two of the three following criteria:
- Total balance: 17,250,000 EUR
- Sales figures: 35,040,000 EUR
- Average number of employees during the accounting year: 250

Professional Accountancy Bodies

CECCAR , Institute of Chartered Accountants of Romania

Certification and Auditing

The audits must be conducted by financial auditors, who are legal persons or entities authorized by the Romanian Chamber of Financial Auditors. They must be conducted under the Standards of Auditing adopted by the Romanian Chamber of Financial Auditors, similar to international auditing standards. Few cases of exemption from audit requirements are subject to the audit carried out by financial censors:
- The annual financial reports prepared by businesses under the OMF law 1752/2005
- The annual financial reports prepared by insurance and reinsurance brokers who on the balance sheets do not exceed the limit of two of the criteria mentioned in the OMF law 1752/2005.

You can contact an external auditor: KPMG, Deloitte, Ernst & Young, PricewaterhouseCoopers.

Accounting News

Association of Bucharest Accountants.
European Accounting Journal
IAS Plus

Tax Rates

Intellectual Property

National Organizations

The Oficiul de Stat pentru Inventii si Marci (Office for Inventions and Trademarks) is the government agency that is responsible for the registration and protection of patents, trademarks and industrial designs.

 

Romania signed the Paris Convention concerning the Protection of Industrial Property and the Convention that establishes the World Intellectual Property Organization (WIPO). Regarding patents, it ratified the Munich Convention on the European patent of 1973 (EPC). It signed the Madrid Convention on the Registry of International Trademarks.

International Membership

Signatory to the Paris Convention For the Protection of Intellectual Property
Membership to the TRIPS agreement - Trade-Related Aspects of Intellectual Property Rights (TRIPS)

Legal Framework

Independence of Justice

The judiciary is not completely independent in Romania. It is heavily influenced by the executive branch institutions of power.

Equal Treatment of Nationals and Foreigners

Foreign nationals can not expect an impartial trial by the judicial system.

The Language of Justice

The judicial language used in the country is Romanian.

Recourse to an Interpreter

It is possible to be assisted by an interpreter.

Sources of the Law and Legal Similarities

The main source of the laws of the country is the constitution of 1991 (revised 2003). The judicial system is based on the French Civil Code (Code Napoleon).

Checking National Laws Online

Labor Code
Law on electronic commerce in Romania

Standards

National Standards Organizations

ASRO, Standards Association of Romania

Integration in the International Standards Network

The Romanian Institute for Standardization (Institut Roman de Standarizare -ASRO) is the organization that is responsible for issuing certificates of standardization.
Its goal is to harmonize Romanian standards with the standards of the European Union. ASRO is a full member of European Committee for Standardization (CEN), of European Committee for Electrotechnical Standardization (CENELEC), International Organization for Standardization (ISO) and International Electrotechnical Commission (IEC); and an observer member of European Telecommunications Standards Institute (ETSI).

Classification of Standards

Romania upholds national standards (SR), European standards (CE), and international standards (ISO).

Online Consultation of Standards

There is no on-line catalogue available. For more information consult ASRO website.

Certification Organizations

RENAR Romanian Accreditation Association

Business Practices

General Information

Worldwide-tax, Guide to Doing Business in Romania
Kwintessential , guide on doing business in Romania

Opening Hours and Days

Offices are open on Monday through Friday from 9am to 6pm
Banks are open on Monday through Friday from 9am to 1pm
Stores are open on Monday through Friday from 9am to 6pm

During the summer, some businesses will reduce staff, opening hours, and/or are closed during the month of August.

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