Romania: The number of suspended and dissolved companies with foreign capital had risen significantly during the first two months of 2018

The number of suspended companies running on foreign capital in Romania rose by 66.52% during the first two months of the year, compared to the same period of 2017, while the number of dissolved companies increased by 74.21%, according to the data National Council of Small and Medium-Sized Enterprises of Romania (CNIPMMR) Chairman Florin Jianu provided in a conference on Monday.

CNIPMMR statistics show that during the first 3 months the legislative framework was greatly modified, being adopted 120 legislative modifications to the Tax Code, which affected the activities of small and medium-sized enterprises.

At a general level, the official data show that during the first 3 months of the year, 835 normative acts were adopted, and over 45% of the laws and ordinances have affected enterprises directly and significantly, including small and medium businesses (fiscal legislation, statements and mandatory contributions, etc.).

According to the CNIPMMR chairman, the changes to the fiscal legislation have generated multiple negative effects upon SMEs, of which: growth of taxation, growth of bureaucracy for all taxpayers and employers, the growth of staff costs, administrative expenses concerning updating IT software, the necessity of a restructure (individual or mass layoffs) and also problems of ensuring competitiveness and the progress of contracts upon export.

The audit of employers shows that during the period of January – February 2018, direct investments of non-resident citizens of Romania went down by 3.17%, summing up 794 million euro (compared to 820 million euro during the same period of 2017), of which participations for capital (including the estimated reinvested net profit) accounted for 592 million euro, and intra-group credits recorded a net worth of 202 million euro.

Furthermore, the number of new companies running on foreign capital amounts to 848 and have a subscribed share capital of over 3.59 million dollars, which is lower by 57.9%, according the information included in the CNIPMMR report, that quotes the ONRC statistic.

On the other hand, during January 1 – February 28, 2018, the number of suspended companies went up by 66.52% (4,108, compared to 2,467 during the same interval of 2017), and the number of dissolved companies amounted to 6,397, compared to 3,672, with a growth of 74.21%. Also, the number of deregistrations went up by 19.25%, to 15,254, and insolvencies grew by 28.07%, reaching 1,492, as opposed to 1,165 during the similar period of last year.

 

 

Source: CNIPMMR report and Nine O’Clock.

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