Romania down to 72nd in World Bank Report‚ Doing Business report

Newsroom 21/10/2011 | 16:11

Romania has fallen seven places for the ease of conducting business, ranking 72nd out of 183 countries in the 2012 Doing Business report, compiled by the World Bank Group and made public last week. The document acknowledges the country’s efforts to improve the insolvency regime, despite the backdrop of the global economic and financial crisis. Romania serves as a good example for easy access to credit, as it allows a general definition of collateral and maintains a unified registry.

The report states that Romania has made starting a business more difficult by requiring a tax clearance certificate for a new company’s headquarters before company registration. However, an electronic payment system for taxes was introduced, as was a one-payment system for social security contributions, two measures that have helped the local business environment. In addition, the country amended its insolvency law, bringing about shorter insolvency proceedings.

According to the 2012 report, investors must spend 14 days and go through 6 procedures to start a business in Romania. In this area Romania ranks 63rd. The study adds that 287 days are necessary to obtain construction permits, along with 16 procedures, putting Romania 123rd in this area. The country comes 165th for getting electricity, access to which needs 223 days and 7 procedures. Paying taxes is also a challenge in Romania, as 222 hours are lost every year in completing this activity. Around 113 payments have to be made yearly, putting Romania 154th in this category. The total tax rate accounts for 44.4 percent of profit.

Romania fares better in protecting investors, ranking 46th, enforcing contracts, where it came 56th, and registering property, where it reached 70th position, with 26 days and 8 procedures required. The country’s 72nd place was for trading across the border. However, Romania ranks 8th in the accessibility of credit.