Legal regime

According to this draft law, the direct investment with a significant impact on the economy mean those new investment of Romanian natural persons or legal entities of private law, consisting exclusively by in-cash capital in ROL or free convertible currency, which exceed the equivalent of 1000000 US-$, carried out in different ways and terms, which contribute to the development and modernisation of the Romanian economic infrastructure, which will have a positive effect over the economy and also create new jobs.

Such an investment has to comply with the following conditions:

1. it has to be a new investment, meaning to be carried out after the approving and the entering into force of the law (it is debatable here if the law concerns only investment into newly-set up companies or includes investment undertaken also into already existing companies - having in mind the past legislation on such subject matter, it appears both such types of investment should benefit from this law);
2. shall be set up by Romanian natural persons and/or legal entities of private law;
3. to consist exclusively by a participation with in-cash capital in ROL or in a free convertible foreign currency;
4. to have a value which exceed the equivalent of 1000000 US-$ (to be paid in within a maximum of 30 months);
5. to be carried out in any field of activity, excepting financial sector, banking, insurance-reinsurance, and any other specific fields regulated by special laws, by observing the following conditions:
   • not to infringe the environmental protection legislation ;
   • not to jeopardize the national security and defense interests of Romania;
   • not to violate the public order, health and decency.
6. to contribute to the development and modernisation of the economical infrastructure of Romania (this condition intends to envisage the regulator's intentions, especially the Romanian Government's aim to encourage the promotion of the long-term investment on the Romanian market);
7. to have positive effects on the economy;
8. to create new jobs.

The fulfillment of the above-mentioned conditions entitles the respective investor to benefit of a special treatment, consisting in specific fiscal incentives and legal guarantees.

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