British Romanian Chamber of Commerce DOING BUSINESS IN ROMANIA ANNE-MARIE MARTIN, CHIEF EXECUTIVE OFFICER, BRITISH ROMANIAN CHAMBER OF COMMERCE DOING BUSINESS WITH THE NEW EUROPEANS BULGARIA & ROMANIA EMITA SEMINAR WEDNESDAY 31 ST MAY 2006 GRANTHAM MARRIOTT HOTEL

BUSINESS CLIMATE PREPARATION FOR EU ACCESSION  POLITICAL & ECONOMIC STABILITY  PREDICTABILITY  STIMULATION  STANDARDISATION  QUALITY ASSURANCE  TRANSPARENCY  FINANCIAL ASSISTANCE  IMAGE

MARKET OPPORTUNITIES  SIGNIFICANT INTERNAL MARKET  SIGNIFICANT NEIGHBOURING MARKETS  CENTRAL EXPORT BASE ALL SECTORS : FINANCIAL & LEGAL SERVICESCONSTRUCTION AGRICULTUREHEALTHCARE POWERGEN, OIL & GASFOOD & DRINK ENVIRONMENTCREATIVE INDUSTRIES FILM & CULTURAL HERITAGEAIRPORTS ENGINEERINGEDUCATION & TRAINING SECURITY (INTERNAL & BORDER)

FACTS & FIGURES Bilateral Trade 2005  EXCEEDED 2.6 BN USD  2000 UK CO’S REGISTERED IN ROMANIA  APPROX 5000 BRITISH NATIONALS RESIDENT IN ROMANIA

 UK EXPORT TO ROMANIA – SOLID GROWTH £644M – UP 6% FROM 2004 – TEXTILES, PHARMACEUTICALS, ROAD VEHICLES, TELECOMS  RO EXPORT TO UK – STEADY GROWTH £775M – DOWN 2% FROM 2004 – TEXTILES/ CLOTHING, ELECTRICAL MACHINERY, POWER GENERATION EQT FACTS & FIGURES Export-Import 2005

OVER 3.5BN EUROS, INCREASED INTEREST  ELECTRONICS  IT  AGRICULTURE  INFRASTRUCTURE  AEROSPACE  FINANCIAL SERVICES  TEXTILES  TELECOMS  PROPERTY FACTS & FIGURES UK FDI 2005

FINANCE  Real GDP Growth – 5.7% pa  Unemployment – 5.9%  Inflation 8.6% & forecast 6.5% 2006 to 3% by end 2007  Relatively low taxation Flat corporate & personal tax 16% VAT 19% Dividend tax 10% Social security 49.5% & 39.5% by end % import duties for most EU origin goods (associate at present)

EU FUNDING POST ACCESSION BN EUROS SECTORS:  INFRASTRUCTURE  ECONOMIC COMPETITIVENESS  HUMAN RESOURCE DEVELOPMENT  ADMINISTRATIVE CAPABILITY OF ROMANIAN AUTHORITY  RURAL DEVELOPMENT/ AGRICULTURE

RIGHTS FOR INVESTORS  ALL SECTORS  FREEDOM OF MANAGEMENT WITH FULL OWNERSHIP RIGHTS  FULL REPATRIATION OF CAPITAL & PROFITS  PROTECTION AGAINST EXPROPRIATION & NATIONALISATION  NATIONAL TREATMENT FOR ALL

INCENTIVES FOR FDI  GENERAL REDUCTION LEADING TO ACCESSION & LIMITED THEREAFTER  FREE TRADE ZONES  DISADVANTAGED AREA INCENTIVES  ACCELERATED TAX DEPRECIATION FOR CERTAIN INVESTMENT AREAS  SUPPORT FOR SME’S  EU PRE-ACCESSION FUNDING  RESPONSIBLE & SOCIAL RESPONSIBILITY

SET UP  LIMITED LIABILITY COMPANY IS RECOMMENDED  100% FOREIGN SHAREHOLDING PERMITTED  FORMALITIES – 4-6 WEEKS  AGENTS & DISTRIBUTORS  ALWAYS SEEK PROFESSIONAL ADVICE

ROMANIA’S BIGGEST ASSET HER PEOPLE  HIGH LEVEL OF EDUCATION  TECHNICAL ABILITY  IT SPECIALISM  STRONG LANGUAGE SKILLS  ATTITUDE – POSITIVE & PROUD, ENTREPRENEURIAL SPIRIT, ENTHUSIASTIC & HARD WORKING

HELP & SUPPORT BRCC & OTHER BILATERAL TRADE ORGANISATIONS ARIS FIC RCCI & REGIONAL CHAMBERS EMPLOYERS’ FEDERATION AGENCY FOR SME’S BRITISH EMBASSYROMANIAN EMBASSY PROFESSIONAL SERVICE PROVIDERS & CONSULTANTS

BRCC CONTACT POINTS LONDON HQROMANIA BRANCH P O Box 367, 13 Inca Drive, London SE9 2WQ United Kingdom Tel: +44 (0) Fax: +44 (0) or Str. Copilului Nr. 16 (Medicare Building) Bucharest, Romania Tel/Fax: +40 (0) VISIT OUR WEBSITE -