Romania’s economy is slowly recovering and some of the most recent reports indicate that the number of insolvent companies was reduced with more than 13% in the first seven months of 2014. Foreign investors are encouraged by these goods news and it looks like Romania’s investment environment is becoming increasingly attractive for foreign companies.
A report from the Romanian National Trade Register Office shows that the number of companies that became insolvent in the first seven months of 2014 fell to 15,124 companies, compared to the 17,458 insolvent companies registered in 2013, during the same period.
In July this year, a number of 2,093 Romanian companies were declared insolvent. The number seems to decrease, even though some of the analysed months seem to have recorded slight increases. A close look at the number of insolvent Romanian companies in previous months generates the following figures: 2,000 insolvent Romanian companies in June; 2,149 – in May; 2,114 – in March; 2,631 – in February and 2,054 – in January.
According to the same report issued by the Romanian National Trade Register Office, the largest numbers of insolvent companies were recorded in the capital city, Bucharest (2,421 companies), followed by Bihor County (1,029 companies) and Prahova County (630 companies). The County that managed to record the lowest rate of insolvency was Calarasi, with only 60 companies declaring their insolvency.
Productive business sectors in Romania
Certain Romanian business sectors still struggle. Most companies that experience financial difficulties can be found in the trade, construction and the manufacturing sectors.
However, companies were incorporated in other business fields in Romania: the scientific and the technical sector have recorded an important increase of the number of incorporated companies, compared to the previous year. Despite the difficulties, the construction and the trade sectors have also recorded a growth in the number of newly incorporated businesses, compared to 2013.
Our Romanian accountants can offer you complete and up to date information about doing business in Romania. Please contact our Bucharest accounting firm for personalized consultancy services.