Romania

Market Overview
By

1. Overview of the Romanian market

Romania continues to be one of the most attractive destinations for doing business in Central and Eastern Europe (CEE). There are strong arguments supporting this claim, including:

  1. its Strategic Location & EU Market Access - positioned at the crossroads of Europe, Asia, and the Middle East:
    • Member of the EU, NATO;
    • Gateway to a 450+ million consumer market in the EU;
    • Access to major transportation hubs (access to the Black Sea via Constanța port, major highways, and rail links);
    • Recent Schengen membership (as of 2025).
  2. Competitive Labor Force (highly skilled workforce, especially in IT, engineering, and manufacturing, with many professionals speaking English, German, and French);
  3. Strong IT & Tech Sector (notably, all large US companies in the technology sector are also present in Romania)
  4. Competitive Tax System & Business Incentives (a flat 16% corporate tax rate , among the lowest in the EU)
  5. Well-Developed and stable Banking & Financial Sector, with major EU banks operating in Romania (BCR, part of Erste group, ING, Raiffeisen, UniCredit) as well as local banks (e.g., Banca Transilvania has gained traction following multiple M&A deals which have enlarged its market share). As the market remains fragmented, there seems to still be potential for further banking M&A deals.
  6. Strong e-commerce growth – which has been booming in recent years, with increasingly fast digital adoption and strong logistics support and promotion of an increased number of digital financial products (including buy-now-pay-later and other types of digital consumer credit which have been thriving recently).

According to 2023 reports of the World Bank, Romania ranks 12th in the European Union by total nominal GDP1 and 7th largest for GDP adjusted by purchase power (PPP).2

Despite the proximity to the war in Ukraine, Romania remains a top destination for foreign investment, tech startups, and industrial expansion. With Schengen integration effective as of 1st of January 2025, and ongoing infrastructure development, Romania is an increasingly attractive business hub in the CEE region.

As Romania navigates its economic landscape, the stability of the political environment remains an important factor influencing market opportunities. The current Government coalition looks quite solid and the redo of the presidential elections set to occur in May 2025 is unlikely to affect Romania’s overall policies and the economic environment will continue to support a stronger EU and NATO membership.

Anticipated fiscal reforms and ongoing negotiations around government policy will likely impact economic growth and inflation rates.

2. Business environment

Generally, Romania offers a friendly business environment, including a simplified business registration procedure, further enhanced by Law 265/2022 on the Trade Registry. Romania has made efforts to simplify the process of registering a business, reducing the time and paperwork required for starting a company.

As such, the registration formalities may be fulfilled either through the dedicated Trade Registry online portal, by email, or in person, with processing times typically ranging between 2 to 5 business days.

The ease of doing business in Romania has also been heavily impacted by its adherence to harmonized EU legislation since its EU accession in 2007, the Romanian legislation being generally in line with relevant EU norms.

Legislative Changes in 2025 versus 2024 - What has changed in the last year that has impacted the way business is conducted?

While it is widely acknowledged that legislation has been enacted both in Romania and, more generally in the EU, at an unprecedented pace and level of complexity, making businesses face a higher risk of compliance due to increased legislative burden, efforts are being made both at national level (e.g., the National Capital Markets Strategy for 2023-26) 3and at EU level, via the EU Commission Competitiveness Compass4 to address this issue.

In this context and until the objective simplification and codification to increase overall competitiveness is reached, it is likely that business in Romania will continue to face the above-mentioned risk, which is generally mitigated to the extent that proper legal advice is sought at an early stage of structuring the business.

It is to be expected that business will continue to be impacted by EU legislation in 2025 as well, in all relevant business areas (e.g., banking and financial services, energy, IT, data privacy and cybersecurity).

Some of the most important general legislative changes last year that will likely impact business in general more heavily are:

  1. Full Schengen access. Starting January 1, 2025[5], Romania, alongside Bulgaria, became a full member of the Schengen Area. By eliminating land border controls between Schengen countries (previously in 2024 air controls were eliminated), free movement of people and goods were facilitated. The decision is expected to reduce border wait times, lower logistics costs, and make Romania more attractive for foreign investments.
  2. Amendments to Company Law No. 31/1990 brought under Law no. 299/2004 which aim to modernize corporate legislation, by enhancing digital engagement, regulating digital participation in shareholder meetings and simplifying administrative processes for businesses (e.g., removal of UBO details in the articles of incorporation, granting more flexibility to delegation of powers to the board of directors).
  3. Adoption of NACE Rev.3 Classification System: The adoption of the NACE Rev.3 Classification System, which amends and updates the previous system, was formalized under Order No. 2938/C of 20 December 2024 on the measures and procedures for the implementation of the Classification of Activities in the National Economy - NACE Rev. 3. The Order establishes the legislative framework for the implementation of the new classification, which is designed to meet the demands of a market-oriented economy and align it with European standards. Starting from 2025, companies are required to update their scope of activity to comply with this new classification, with the implementation to be carried out through the National Trade Register Office.
  4. Amendment to the Cybersecurity legal framework following transposition of Directive 2022/2555 (“NIS2 DIRECTIVE”) - Government Emergency Ordinance no. 155/2024 on the establishment of a framework for the cybersecurity of networks and information systems in the national civil cyberspace (“NIS2 GEO”) was published and entered into force on December 31, 2024. In line with NIS2 Directive, NIS2 GEO no longer distinguishes between “operators of essential services” and “digital service providers”, defining instead new categories of “essential entities” and “important entities” mainly based on sector and size. In terms of sectors/ industries, the scope has also been broadened compared to the previous regulatory framework.
  5. Important changes to the Foreign Direct Investment Regime (FDI) - In 2024, Romania introduced notable amendments to its FDI regime under Law No. 231/2024, aiming to enhance clarity and consistency in FDI screening procedures, particularly concerning EU-investments, including by expanding sanctionable conduct to cover EU-investments. Additionally, Law No. 231/2024 provides clarifications on nullification of non-compliant investments and of the agreements implementing such investments. Furthermore, recent amendments to FDI legislation introduced at the end of 2024 under Government Emergency Ordinance no. 152/2024 specify that investments made by Romanian citizens will also be subject to FDI security screening.

3. What are the main business structures in Romania?

Generally, the following types of companies may be set up in Romania: Limited Liability Company (SRL) (in Romanian, “Societate cu Răspundere Limitată”), Joint Stock Company (SA) (in Romanian, “Societate pe Acțiuni”), Limited Partnership by Shares (SCA) (in Romanian, “Societate în Comandită pe Acțiuni”), Limited Partnership (SCS) (in Romanian, “Societate în Comandită Simplă”), and General Partnership (SNC) (in Romanian, “Societate în Numele Colectiv”), as per Company Law no. 31/1990.

However, in practice, in Romania, the Limited Liability Company (SRL) is the predominant business structure, significantly outnumbering Joint-Stock Companies (SA). The main reason for the investors’ preference for the SRL structure is related to lower capital requirements, a more flexible and simpler management structure, fewer legal requirements and administrative costs. The SA structure is generally chosen by more sophisticated and larger investors, often operating in regulated sectors (e.g., certain sector specific requirements impose the SA to obtain a business license, for example, in the case of non-banking financial institutions and credit institutions).

All companies must be registered with the Romanian Trade Register Office following the registration procedure set out under Law no. 265/2022 on the Trade Registry and for amending and supplementing other regulatory acts on Trade Registry registration.

A limited liability company (LLC, or SRL in Romanian) may be established with up to 50 shareholders, although the Company Law also allows for the creation of a company with a sole shareholder. On the other hand, a joint stock company (JSC, or SA in Romanian) requires a minimum of two shareholders in order to be set up.

As an alternative to the incorporation of a legal entity in Romania with legal personality, investors have the possibility to incorporate a branch or representative office of the foreign company in Romania. Such legal structures will act in the name and on behalf of the parent company and will be subject to registration formalities (the representative office is subject to an authorization and registration procedure with the Ministry of economy, digitalization, entrepreneurship and tourism instead of the Trade Registry).

Business Structure
Min. Capital
Liability
 
Common Use

SRL (Limited Liability)
No minimum provided by law (cannot be null)
Limited to share capital
Small to medium-sized businesses

SA (Joint-Stock)
90.000 RON (18.000 EUR)
Limited to share capital
Large businesses, public companies

Sole Proprietorship
None
Unlimited (owner's personal liability)
Freelancers, consultants

Branch of Foreign Company
None
Parent company liability
Foreign companies entering the market

Representative Office
None
Parent company liability
Market research, promotion

4. Economy

Currency strength

In 2024, the Romanian leu (RON) demonstrated resilience despite global economic fluctuations. Throughout the year, the EUR/RON exchange rate remained quite stable, with a medium exchange rate of 4.9750 RON per EUR6, reflecting a favourable and trustworthy environment for investments and market confidence. This stability was primarily driven by the National Bank of Romania’s (NBR) prudent monetary policies. These efforts helped to moderate excessive volatility and foster a steady economic scene.

Looking ahead to 2025, the NBR’s decision to lower the monetary policy rate to 6.50% signals a continued focus on maintaining stability in the currency market [7]. While some short-term fluctuations may occur due to external risks, the NBR’s steady approach, alongside Romania’s fiscal discipline and ongoing structural reforms, is expected to support the leu's strength. The outlook remains cautiously positive, with efforts focused on promoting the gradual appreciation of the currency, in line with broader economic objectives, such as anchoring medium-term inflation expectations and contributing to sustainable economic growth.

While geopolitical conflicts and the budget consolidation may negatively affect the economy, a stronger and more efficient absorption of EU funds, especially those under the Next Generation EU programme, are expected to counterbalance such negative effects and strengthen the resilience of the Romanian economy.

Inflation rates

Romania’s inflation rate experienced fluctuations in 2024, but the recent landscape points to a positive trajectory. In January 2025, the annual inflation rate dropped to 4.95%, down from 5.14% in December 2024, according to the official report released by INSSE on 14 February 2025, this decline reflecting the gradual easing of inflationary pressures, particularly from food prices and wage growth.8

While the National Bank of Romania (NBR) had initially revised the inflation forecast for 2024 upwards to 4.9%, driven by adverse weather conditions and higher wages, the outlook remains optimistic.

The NBR currently projects that inflation will gradually decline, reaching 3.5% by the end of 2025 and returning to within the target range by mid-2026. These projections indicate a steady return to price stability, supported by sound monetary policies and favourable economic conditions.[9]

Main trade sectors

In 2024, Romania's economy continued to showcase its industrial diversification, positioning it as a resilient player in the region. Romania benefits from a well-balanced economy with significant contributions from agriculture, services, and the rapidly growing IT sector. This diversification has helped Romania maintain a competitive edge in a challenging European economic landscape.10

Romania is characterized by a highly trained labor force, abundant natural resources in key areas, and geographical conditions that facilitate the transportation of goods. These factors, along with one of the largest markets in Central and Eastern Europe, make the country an increasingly attractive destination for investment. With a solid foundation and growing opportunities in various sectors, Romania continues to offer numerous prospects for investors looking to capitalize into its dynamic market.

5. Current opportunities & future prospects

What opportunities exist for clients looking to invest in your jurisdiction?

The reforms and investments in Romania’ are likely to be supported by Romania’s commitments under the National recovery and resilience plan (PNRR) agreed with the EU Commission11. The PNRR is a comprehensive plan that targets sustainable development, economic modernization, and social resilience.

The main investment areas favored by the PNRR include green energy, digital transformation, health system modernization, education, infrastructure, and social inclusion. These investments aim to align Romania with the EU’s broader goals for post-pandemic recovery, digitalization, and sustainability, creating a more competitive and inclusive economy for the future.

In this context, digitalization will continue to provide interesting investment and growth opportunities across many sectors (e.g., e-commerce, digital banking, digital investment and financial services etc.). As such, Romania's retail and e-commerce sectors are projected to experience significant expansion in the near future. This growth is largely attributed to increased internet access and evolving consumer habits, which have driven an increased demand for online easy to access solutions. Investors that focus on innovative online commerce strategies, such as rapid delivery platforms and personalization tools, are well positioned to capitalize on this trend and growth potential in the marketplace.

As regards capital markets opportunities, despite the volatile and high market uncertainty also triggered by the Presidential elections set to take place in May 2025, investors should consider Romania’s commitments assumed under the National Resilience and Recovery Plan, which refer to the obligation to list three of the State-owned companies (most likely in the energy and transportation sectors). However, this decision is yet to be taken by the Romanian Government.

Another area of interest is the public private partnership projects (PPP) sector, especially relevant in the context of the Romanian high budget deficit (8.6% in 2024). In spite of the absence of successful precedents for PPPs under the current PPP legislation, projects to be developed under PPP are awaited in the following period - the main opportunities being in infrastructure such as hospitals, roads, railways, metro lines, power plants and airports.

In the banking sector, the consolidation trend that we have seen in the past years is expected to continue (we have been actively supporting our clients in major banking M&A deals (including the recent acquisition of Alpha Bank by Unicredit12); additional opportunities may arise in connection with innovative digital finance products (we have assisted in the implementation of some first-on the-market digital products including digital retail loans / buy-now-pay-later products).

The recent Schengen membership should also offer significant additional efficiency and synergies to numerous sectors.

6. Legal system

How does the legal system operate? What should clients be mindful of when doing business in your jurisdiction?

Romania is a civil law system, which means that the primary source of law are written statutes and codes (e.g., Civil Code, Civil procedure Code, Administrative Code etc.) and court decisions generally do not have the same precedential value as in common law systems.

While being part of the EU strongly facilitates doing business in Romania, given that the domestic law is generally aligned with EU law and EU regulations are directly applicable (e.g., GDPR), the areas which are not harmonized at EU level or for which gold plating is permitted, should be carefully factored in by investors in their business plan prior to investing (e.g., real estate13, tax law regime, FDI regime).

7. Foreign investment restrictions

Regulatory environment, Direct investment

In Romania, the FDI regime is mainly regulated by Government Emergency Ordinance no. 46/2022 for the implementation of EU Regulation 2019/452 (GEO 46/2022), which, among other things, defines the relevant concepts, sets out the types of deals reviewed, procedural aspects and potential sanctions[14].

Pursuant to GEO 46/2022, filing is mandatory for a FDI, an EU investment or a new investment, as defined under GEO 46/2022, made by a foreign investor or an EU investor  (which also includes Romanian citizens), that: (i) covers the activities relevant to national security according to Decision no. 73/2012 of the National Council for Country's Defence, in conjunction with the criteria set out in article 4 of Regulation 2019/452; and (ii) whose value exceeds a threshold of €2 million (by exception, FDIs not exceeding €2 million may also be subject to scrutiny if they are likely to have an impact on security or public order or pose a risk to them).

Foreign investors or EU investors can protect themselves by ensuring that any transaction carried out in Romania is internally pre-assessed from an FDI perspective (in other words, verifying whether the transaction falls under the criteria set out in GEO 46/2022), followed by formal filing if they conclude that the transaction meets the relevant criteria, in addition to other regulatory clearances that may be required, such as the merger clearance by the Romanian Competition Council.

Foreign exchange controls

In Romania, foreign exchange controls are primarily regulated by the National Bank of Romania (NBR) under Regulation No. 4/2005 on the foreign exchange regime. This regulation establishes the framework for foreign exchange operations, including the rights and obligations of residents and non-residents, the conduct of foreign currency transactions, and the roles of financial institutions in monitoring compliance.

Both residents and non-residents are permitted to acquire, hold, and use financial assets denominated in both foreign and domestic currencies. They may also open and maintain accounts in these currencies with authorized institutions.

Transactions between residents involving the sale of goods and services must be conducted in the national currency (leu), unless specific exceptions outlined in the NBR Regulation No. 4/2005 apply. Other transactions between residents, such as financial operations, can be conducted in either national or foreign currency, depending on mutual agreement.

Restrictions on foreign capital

In exceptional cases laid down under NBR Regulation No. 4/2005, the National Bank of Romania may impose restrictions to foreign exchange transactions. However, to the best of our knowledge, such restrictions have not been yet imposed in practice in recent times. If such an exceptional event occurred, the National Bank of Romania could impose various FX restrictions on short term FX operations (e.g., notifications /limits on FX transactions between residents and non-residents). Under the applicable norms, FX operations that could theoretically be affected are broadly defined, including payments, transfers, loans and offsets, as well as any other means of payment, depending on the nature of the relevant operation.

8. Top 5 tips to know before Investing

Investing in Romania can prove to be a fruitful endeavor, but from a legal perspective, it is key to consider the following main general aspects:

  • Carefully choose the most appropriate legal structure for your business
  • Be mindful of the applicable FDI regime, as pecuniary and civil sanctions are severe and might affect business prospects
  • Strictly observe AML and anti-corruption laws
  • Understand sector- specific regulations that may apply (banking, financial services, healthcare, energy, environment etc.) and local specificities
  • In case you are a non-EU investor, consider that in many cases Romania has concluded trade agreements (bilateral investment treaties) with other countries outside the EU, offering favourable trade terms.

It is highly recommended to consult the local legal experts to navigate Romania's intricate legal framework, understand expectations of various competent authorities to ensure compliance with local laws and maximize your chances of success in the Romanian market.

Interested in Doing Business in Romania?

Bondoc și Asociații SCA is a leading Romanian law firm (and top 10 in size in the country), involved in many of the most complex projects in the country, offering full-range of business law legal assistance.

In recent years we have worked on many of the largest and most complex transactions in the Romanian market.

For more details about our firm and partners please see: https://bondoc-asociatii.ro/

https://www.legal500.com/firms/17801-bondoc-si-asociatii-sca/c-romania/rankings

Authors:

Lucian Bondoc, Managing Partner

Diana Ispas, Partner

1 https://data.worldbank.org/indicator/NY.GDP.MKTP.CD?locations=RO&most_recent_value_desc=true

2 https://data.worldbank.org/indicator/NY.GDP.MKTP.PP.CD?locations=RO&most_recent_value_desc=true

3 https://asfromania.ro/uploads/articole/attachments/659e5a3d502c9507465771.pdf

4 Around €37.5 billion potential annual savings are expected for EU companies if EU achieves its simplification goals – see https://commission.europa.eu/topics/eu-competitiveness_en.

5https://ec.europa.eu/commission/presscorner/detail/pl/statement_24_6401

6 Romanian leu (RON)

7 Banca Naţională a României - Minutes of the monetary policy meeting of the National Bank of Romania Board on 14 February 2025

8 Template press release

9 National Bank of Romania (Banca Naţională a României) - Inflation Report

10 EBRD, Romanian officials debate industrial policy with entrepreneurs at BVB event in Bucharest | Romania Insider

11 https://commission.europa.eu/business-economy-euro/economic-recovery/recovery-and-resilience-facility/country-pages/romanias-recovery-and-resilience-plan_en.

12 https://bondoc-asociatii.ro/bondoc-si-asociatii-sca-advised-unicredit-spa-in-connection-with-the-acquisition-of-alpha-bank-romania-s-a/ .

13  Please see our relevant Legal 500 Guides - https://www.legal500.com/guides/chapter/romania-real-estate/ and https://www.legal500.com/guides/chapter/romania-data-protection-cybersecurity/.

14 Please see also FDI comments in Chapter 6 above.

Firms in the Spotlight
Interviews
ViewView
Comparative Guides
ViewView
News & Developments
ViewView
Press Releases

Popovici Nițu Stoica & Asociații advised Hexagon on the acquisition of the CUG Platform in Cluj, in one of largest real estate projects of the year

November 2025 Popovici Nițu Stoica & Asociații (PNSA) has assisted Hexagon Group, one of Romania’s leading real estate developers, on the acquisition of approximately 23 hectares of land from the former Combinatul de Utilaj Greu (CUG) industrial platform in Cluj-Napoca. The property was purchased from German group Max Aicher in a record transaction exceeding €20 million. Following this acquisition, Hexagon Group plans to transform the site into a modern mixed-use development, continuing its commitment to large-scale urban regeneration projects. PNSA provided legal assistance throughout the entire acquisition process, including preliminary negotiations, due diligence, transaction structuring, drafting and negotiating transaction documents, and assistance through signing and closing. PNSA team advising Hexagon on this transaction was led by Managing Partner Florian Nițu with Ana Maria Popa (Managing Associate) and included Adrian Nica (Counsel), Cristina Anderco (Associate), Mihaela Ion (Partner), Laura Ambrozie (Managing Associate), Vanessa Nistor (Managing Associate) and Camelia Constantin (Managing Associate). Hexagon Group is a long-standing client of Popovici Nițu Stoica & Asociații, having advised them in numerous transactions in the recent past, including on the acquisition of the former Tehnofrig platform in Cluj-Napoca, in a transaction worth approximately €35 million; the development of the mixed-use project Hexagon District; as well as the development of ERA residential complex, a large-scale urban regeneration project financed with more than €18 million.
Popovici Nitu Stoica & Asociatii - November 24 2025
Corporate law

How to legally liquidate a business in Romania

Voluntary dissolution and liquidation procedure through the Trade Registry Liquidating a company in Romania is a much more complex process than a simple decision made by shareholders. It requires a precise liquidation procedure, in accordance with commercial legislation, as well as assistance from a business lawyer or a company lawyer with relevant experience. Whether it’s about dissolution of an SRL, company dissolution, or company deregistration, the steps must be followed carefully to prevent complications both fiscally and legally. This article helps understand the dissolution process of an SRL, whether it’s a voluntary choice or a situation imposed by insolvency or bankruptcy. The simplest method for company dissolution it is the self-initiated procedure. This process takes place directly through the Trade Registry, without the involvement of the court, if the company has no debts or litigation issues pending. To comply with the liquidation procedure, it is beneficial to collaborate with a business lawyer or a consulting lawyer, who can precisely indicate the necessary documents for this process, including: the shareholders’ decision, the closing balance sheet, and proof of publication in the Official Gazette. A trade registry lawyer or a company lawyer will coordinate the stages of this process, thus helping to avoid significant delays in company deregistration. Corporate lawyer. Dissolution and liquidation with the appointment of a liquidator – Stages and implications If there are disagreements among shareholders and they are unable to collaborate, they can request the appointment of a liquidator through the court. This form of company liquidation involves a complex liquidation procedure, where the presence of a commercial lawyer or a litigation lawyer becomes essential. The liquidator will take over the management of the company until its company deregistration, being responsible for asset liquidation and debt payment. To prevent potential misunderstandings, the support of a business lawyer or a corporate lawyer is recommended to ensure representation in court and effective collaboration with the liquidator. This stage may generate litigation situations, where the involvement of a litigation lawyer or even an insolvency lawyer may be needed, especially if the process leads to insolvency. Commercial lawyer. Company deregistration after the completion of the insolvency procedure If the company can no longer operate due to financial reasons, bankruptcy may occur. In such cases, the insolvency procedure can be initiated by either the creditor or the company, ultimately leading to company deregistration. The Romanian Law Firm Pavel, Mărgărit & Associates provides full legal assistance in the dissolution, liquidation, and deregistration procedures of companies in Romania, whether it involves voluntary closure, bankruptcy, or insolvency procedures. Our team of experienced commercial lawyers, litigation lawyers, and corporate lawyers offers specialized consultancy and effective court representation, ensuring the legal status of the company is clarified and the entrepreneurs’ interests are protected throughout every phase of the business closure process. Don’t navigate these challenges alone. Contact Us today for expert assistance tailored to your needs. Contact Us The expertise of an insolvency lawyer or a bankruptcy lawyer will be necessary to protect interests throughout the process. After the sale of assets and payment of debts, the syndic judge will close the procedure, and the company will undergo the company deregistration process in the trade registry. Insolvency lawyer. Temporary suspension of the company activity – An alternative to closure If permanent closure of the company is not desired, but no economic activities are being conducted, suspending the activity is a viable legal alternative. This operation keeps the legal entity active, but without continuing economic operations, which is extremely useful if there is an intention to resume activities in the future or to avoid certain tax lawyer and administrative obligations. The suspension of activity must be registered with the trade registry, with its duration regulated by the legislation in force, varying depending on the circumstances of each company. “Closing a business in Romania, whether through voluntary dissolution, insolvency, or bankruptcy, should never be approached without a clear and professional legal strategy. Every step, from the shareholders’ decision to company deregistration with the trade registry, carries significant legal and tax risks. The Romanian Law Firm Pavel, Mărgărit & Associates provides expert legal advice and representation through top-tier lawyers specialized in corporate law, commercial litigation, and business law, ensuring a secure and compliant exit from entrepreneurial activity,” said Dr. Radu Pavel, Coordinating Lawyer at Pavel, Mărgărit & Associates. A trade registry lawyer, together with a consulting lawyer, helps draft the necessary applications and declarations. Furthermore, if tax lawyer or compliance lawyer issues arise, the presence of a commercial lawyer or a business attorney is essential. In conclusion, whether it is about SRL dissolution, bankruptcy, the insolvency procedure, or company deregistration, closing a business in Romania must be done with rigor. Each procedure involves specific stages that must be followed, with the correct approach ensuring compliance with the law and protecting the interests of entrepreneurs. Thus, the business closure process must be managed professionally, with collaboration from a business lawyer or an insolvency lawyer making the difference between an efficient closure and one that results in additional problems.
Pavel, Margarit & Associates Romanian Law Firm - November 21 2025
Tax law

What To Do When You’re Facing a Tax Dispute?

Key Steps to Challenge Tax Decisions and Defend Your Rights A conflict with ANAF can be overwhelming, especially for a corporate lawyer representing a company facing tax authority actions or severe tax recovery procedures. In such situations, it is crucial to work with a tax lawyer or fiscal lawyer specialized in tax law, who understands the tax updates and the procedures imposed by the authorities. An experienced tax attorney can provide tailored legal advice and support. To handle such challenges effectively, the assistance of a tax lawyer familiar with tax law and the procedural steps laid out by the tax authority can be essential. The lawyer will analyze the documents issued by ANAF, assess the legality of their actions, and identify potential legal remedies — from filing an administrative complaint to submitting a case before the court. This includes the right strategy for each step, especially when time-sensitive legal frameworks apply. The Romanian Law Firm Pavel, Mărgărit & Associates offers complete legal assistance in tax authority litigation, including drafting complaints, submitting requests for suspension of enforcement, and representing clients in front of the relevant courts. Our tax attorney team ensures that all procedures are aligned with the latest tax updates. Tax Law Attorney. How to File a Complaint Against a Fiscal Administrative Act The first step in challenging a decision issued by ANAF is to file a complaint within the legal deadline as stated in the applicable law. The guidance of a tax lawyer or fiscal lawyer is highly recommended. A tax attorney experienced in dealing with the tax authority can make the difference between a favorable resolution and a definitive ruling with long-term consequences for any corporate lawyer. Corporate Lawyer. Taking Legal Action When the Authority Fails to Issue a Necessary Administrative Act If ANAF refuses without legal justification to issue a necessary administrative document, such as a refund decision or confirmation of the settlement of tax authority obligations, a legal action can be initiated. The help of a corporate lawyer with knowledge in tax law is often indispensable in such matters. Tax Attorney. Contesting Enforcement Actions: What You Should Know When ANAF initiates enforcement procedures to recover outstanding tax updates, you have the right to contest these actions within 15 days. A fiscal lawyer or tax attorney can assess your case and provide the best strategy to halt enforcement. Legal advice from a qualified tax lawyer ensures that your defense aligns with the procedural rules under tax law. Pavel, Mărgărit & Associates offers comprehensive legal services in tax disputes, including tax updates, litigation, and defense before ANAF and courts. If you’re dealing with enforcement or interpreting procedures of the tax authority, don’t hesitate to contact us via our website: https://avocatpavel.ro/contact/. Don’t navigate these challenges alone. Contact Us today for expert assistance tailored to your needs. Contact Us “In a tax dispute, timing and solid legal reasoning are essential. A well-coordinated team of a tax lawyer, tax attorney, and fiscal lawyer can achieve favorable outcomes even against an authority like ANAF,” stated the Coordinating Attorney of the Romanian Law Firm Pavel, Mărgărit & Associates, Dr. Radu Pavel. The expertise of a contract lawyer is vital when the tax updates stem from questionable commercial relations, while a tax attorney provides valuable insight into the financial impact for a corporate lawyer. Tax disputes are highly complex and may have significant implications for a company, both legally and financially. A fiscal lawyer can offer not only legal representation but also a comprehensive and personalized strategy aligned with tax updates.
Pavel, Margarit & Associates Romanian Law Firm - November 21 2025
Civil Law

Arrangement with creditors in Romania

Useful restructuring mechanism for entrepreneurs and their creditors The preventive concordat (preventive composition) in Romania is the judicial procedure for preventing insolvency regulated by Law no. 85/2014 on preventing insolvency and insolvency proceedings, whose opening suspends enforcement proceedings under the law, while the debtor can restructure its business in Romania and pay all or part of the affected claims based on a restructuring plan voted by the creditors whose claims are affected and approved by the insolvency judge.  The Romanian Law Firm Pavel Mărgărit and Associates provides legal assistance in the preventive restructuring proceedings procedure, including representation before the insolvency judge, as well as in relations with creditors to obtain favourable votes. Our team of lawyers specialized in restructuring and insolvency fields supports both companies facing financial difficulties and creditors interested in protecting their interests within this procedure. Insolvency lawyer in Romania. Who can benefit from the concordat in Romania? Any enterprise facing difficulties but not yet insolvent. Difficulty represents a temporary state caused by any circumstance that generates a real and serious threat to the debtor’s future capacity to pay debts at maturity if no adequate measures are taken. The debtor in difficulty is able to fulfil obligations as they become due. An insolvency lawyer in Romania and a litigation lawyer in Romania can provide essential assistance in identifying the appropriate legal solutions to restructure the business, avoid opening of insolvency proceedings in Romania and protect company assets. They analyse the financial situation in detail, propose efficient restructuring measures and reorganization in Romania, and prepare the necessary documentation to initiate the preventive concordat proceeding in Romania. Litigation lawyer in Romania. Advantages of the preventive in Romania over insolvency procedure in Romania The preventive concordat proceeding allows the entrepreneurs to maintain control over the business and propose a restructuring plan adapted to their needs, avoiding the rigid solutions typical of insolvency procedure in Romania. This procedure is viewed more favourably, helping preserve reputation with clients and partners. There is flexibility in negotiating debts and the possibility of obtaining better conditions than in insolvency. Costs are generally lower, and the company can become more attractive to investors. The debtor chooses the concordat administrator, benefits from automatic suspension of enforcement and penalties, and creditors cannot request insolvency or change essential contracts to the debtor’s detriment. Interim financing is possible, and the entrepreneur can negotiate individually or collectively with creditors, choosing which claims are affected by the restructuring. The plan is voted only by creditors whose claims are affected. Insolvency lawyer in Romania. Benefits for creditors of the entrepreneur related to the preventive concordat proceeding. Creditors benefit from multiple guarantees and rights during the preventive concordat, including the ability to initiate the proceeding, vote by correspondence and recover claims more efficiently, especially creditors without preferential rights. Contractual relationships are not definitively affected; interest and penalties are temporarily suspended. The administrator’s fee is covered by the debtor’s funds, not the creditors’. The approved restructuring plan does not affect unaffected creditors, who retain the right to initiate enforcement proceedings if debts remain unpaid. Affected creditors receive quarterly reports from the judicial administrator in Romania. Creditors providing new or interim financing are protected from civil, administrative, or criminal liability solely for their involvement. Creditors exercise their rights collectively by voting at creditor meetings. “The preventive concordat proceeding represents a balanced solution for companies in difficulty, offering a real chance to recover without losing control over the business. It is an effective alternative to insolvency proceedings in Romania for both debtors and creditors,” said Senior Associate Lawyer Dr. Nicoleta Mirela Năstasie from The Romanian Law Firm Pavel, Mărgărit and Associates. “Through the preventive concordat  in Romania, companies can preserve their reputation and negotiate viable restructuring terms directly, while creditors benefit from transparency and predictability in debt recovery,” said Dr. Radu Pavel, Managing Partner of The Romanian Law Firm Pavel, Mărgărit and Associates. The Romanian Law Firm Pavel, Mărgărit and Associates provides complete legal assistance in restructuring and insolvency proceedings in Romania, offering consultancy and representation before competent authorities for pre-insolvency and insolvency proceedings, reorganisation, bankruptcy and liquidation proceedings in Romania,. Do not hesitate to contact us via the form on our website: https://avocatpavel.com/contact/. Don’t navigate these challenges alone. Contact Us today for expert assistance tailored to your needs. Contact Us In conclusion, the preventive concordat proceeding in Romania is a valuable opportunity for enterprises in difficulty, allowing them to avoid insolvency proceedings in Romania and continue operations under regulated and controlled conditions. This legal solution preserves the entrepreneur’s control, protects the business’s reputation, and encourages direct, transparent negotiations with creditors within a secure legal framework. With the support of an insolvency lawyer in Romania and a litigation lawyer in Romania, companies can access this mechanism efficiently, ensuring financial recovery, long-term stability and avoiding insolvency procedures in Romania.
Pavel, Margarit & Associates Romanian Law Firm - November 21 2025