by Vlad Cuc
The following article enumerates the types of Romanian companies which require prior permits in order to be incorporated. Besides the business fields we will present in this article, it is necessary to know that the Romanian legislation provides other types of business licenses that are necessary for other economic activities.
Our team of Romanian lawyers can offer an extensive presentation on the types of licenses and business permits that can be requested under the commercial legislation available here and can also present the types of documents that have to be submitted with the local institutions, depending on the economic sector that is of interest for a foreign businessman. We can also advise on the documents required when registering for VAT in Romania and on the process of company formation in Romania. If you need legal services for company formation in Romania, you can contact us.
Table of Contents
One of the business activities that requires a business license is the banking sector. Thus, in the case of credit institutions or other legal entities operating in this field, it is necessary to apply for an authorization that is issued by the Romanian National Bank; please note that it is forbidden to carry out banking operations without a prior approval from this institution.
The Romanian National Bank grants the authorization to a credit institution in Romania only if making sure that the respective credit institution is able to ensure on-going activity in conditions of safety and respecting the requirements of a prudent and business-healthy administration, but also to ensure the protection of the clients and creditors and the well-maintenance of the banking system per the law’s stipulations, which can be detailed by our team of lawyers in Romania.
Note: The Romanian National Bank notifies to the European Commission any granted authorization, with the exception of those granted to the institutions emitting electronic currency, for the name of the credit institution to be included in the list of credit institutions made and updated by the European Commission, which is published in the Official Journal of the European Union. Once the authorization is issued, its validity is unlimited. It is also important to know that the license can’t be transferred to another entity.
The Commission of Insurance Supervising is able to grant authorization for the companies activating in the insurance/re-insurance market, in the case of cumulative fulfillment of a set of conditions. The procedure to cover all risks in one class of activity and in the situation in which the insurance company only wishes to cover certain risks included in the respective class, a feasibility study must be drafted which must contain the following information and documents:
The feasibility study should contain the following: the estimation of the expenses afferent to the executive management and to management positions specific to the insurance area, the estimation of bonuses and damages, the budget of income and expenses and the estimation of the financial resources necessary to the constitution of technical reserves and margin of solvency.
It is also necessary to provide an information technology system adequate for the optimal insurance activity per the information required at point 1, per the norms regarding the authorization of the insurers, emitted for the application of the law; our team of Romanian lawyers can provide more information concerning this subject.
IMPORTANT: For obtaining the authorization to function, as well as at any time during the actual activity, an insurer or a re-insurer must be in working relations with at least one actuary and in the case in which the volume of activity is more developed, it requires the employment of two or more actuaries. An insurer cannot be registered with the Romanian Trade Register without the prior permission for the registration from the Insurance Supervision Commission.
The law regulates the formations and functioning of the financial instruments market, with the specific institutions and operations as well as the collective placement organisms for the purpose of the mobilization of the financial resources through investment in financial instruments; our Romanian law firm can provide further details.
IMPORTANT: The National Commission of Movable Valuables, named C.N.V.M., is the competent authority which applies the provisions of the Law through the prerogatives established in its governing regulations. The financial investments regulated by the law are divided between main services and related services. In the first case, the following apply:
In the case of related services, the following are available: the custody and administration of financial instruments, renting of safety boxes, granting of credits or loans of financial instruments to an investor in certain conditions, the consultancy given to legal entities with regards to any matter related to the capital structure, industrial strategy, as well as consultancy and services related to company mergers and acquisitions.
The related services also refer to any other types of services that are connected to the subscription of financial instruments, to investment consulting regarding financial instruments and the currency exchange related to financial investment. Our team of lawyers in Romania can offer more information on the licensing requirements available in this case.
Services of financial investment related to financial instruments can only be offered by companies of financial investment services authorized by the CNVM, credit institutions authorized by the CNVM, credit institutions authorized by the National Bank of Romania per the provisions of the applicable banking laws as similar entities authorized in EU member or non-member states to provide financial investment services.
As a company providing intermediary services in the field of financial investment services, it is necessary to be registered with the CNVM. The CNVM must provide an authorization for financial investment services and intermediaries from non-member states; the requirement is also applicable to credit institutions, authorized by the Romanian National Bank. It is also necessary for the equivalent of credit institutions and for financial investment services, authorized by the competent authorities from member states.
Businesses that operate in fields such as retail, import-export activities, firearms manufacturing and the manufacture of ammunition have to apply for specific permits. The companies which wish to activate in this field are required to apply for a permit from the central or local structure of the General Inspectorate of the Romanian Police. The issuance of the license is bound by the submission of specific documents, which are presented below:
One of the business fields in which foreign businessmen can invest in Romania is the construction sector. When investing in this industry, it is also necessary to apply for permits and licenses designed for this field of activity. There are a number of procedures investors should expect when obtaining the required authorization from the local institutions.
For example, a company developing a construction project in Romania should make all the necessary arrangements in order to receive clearances, permits, certificates or business licenses, by submitting the appropriate types of documents. Once the company applied for the permits and licenses necessary for its business activity, the company’s representatives should expect a set of inspections on the construction site. When applying for construction permits in Romania, investors must know that the following will be applicable:
Those involved in a construction project, more exactly, in a greenfield construction project, will need to apply for a wide range of permits, as numerous professionals and institutions are involved in various parts of the construction project; our team of Romanian lawyers can present the legislation regulating this field of activity; some of the basic steps are the ones mentioned below, but additional procedures should be completed:
Yes, all businesses that carry operations in the field of transportation need to be licensed for their respective activity, regardless that it refers to the transportation of passengers or of goods. The issuance of the license falls under the responsibility of the Romanian Road Authority Office and investors have to prepare a set of documents, which can be detailed by our law firm in Romania; such companies have to provide in-depth information on the expertise and qualifications of the persons who will carry the transportation activities.
In order to obtain the license to function, the following documents have to be provided to the police: the approval from the Romanian police related to the object of activity, name of the company, approval of the shareholder and management personnel obtained before the registration of the company with the Trade Register.
The verifications for this approval will be extended upon the husband, wife or person cohabitating with the associate(s) and the management, to find our more about their preoccupations, their interactions with the society and their criminal records. More details on this subject can be offered by our team of lawyers in Romania. Please contact our Romanian law firm for more information on the business permits that are available here and on the process of company formation in Romania.