Wednesday, March 5, 2014

How to start a textile mill in Romania

The Romanian textile industry was intensively challenged during the post-communist era but still promises to deliver solutions for entrepreneurs interested to explore a highly provocative field.

Certainly one of the most controversial branches of the Romanian industry, the textile manufacturing area went through various stages during the post-communist era. In spite of its period of decay, this field always provided a range of solutions which, if properly approached, managed to deliver profits in a rather unexpected way. A long-term tradition in the Romanian textile milieu was represented by the research area, consistently developed before the fall of the communist regime. Providing a substantial background for a lucrative evolution, scientific studies maintained a highly competitive mood. This detail explains the surprising aptitude of this domain to adapt to inconvenient conditions, so common for a transition period which progressively altered industries. During the harsh times of the European recession, the labor force in this industry was reduced but the production rate increased from 3.12 billion EUR in 2009 to 4.37 billion EUR in 2012. This actually covers three percents of the GDP placing the Romanian textile industry in a favorable position.

Various famous brands such as Armani or Prada decided to produce their products (clothes, shoes or accessories) in Romania. For 2012, the ten most important local textile producers managed to obtain revenues of more than a half billion EUR. Factories are located in different areas and if willing to understand how to start a textile mill in Romania entrepreneurs shall turn to advantage several production characteristics related to proximity to western markets, qualified personnel or low cost labor force. Another important fact concerns the opportunities provided by the alternative of capitalizing the seasonal crops like flax or hemp or raw wool.

Technical legal details related to the incorporating process itself are not of intricate significance but rather concern a bureaucratic apparatus adapted to this specific industry field. First of all, as anticipated, the business approach must indicate the NACE codes which define the object of activity. A difference should be made between various processes such as the preparation of the fiber, production and finishing of textiles, manufacture of knitted items, rugs, carpets, distinct non-woven items. The manufacturing of wearing apparel covers the leather clothes, workwear and items made of fur. As it generally happens for most of the sectors, in the textile industry certain permits must be obtained, according to specific activities. Procedures imposed in this particular case are not as elaborate as in other areas but benefitting from constant professional help delivers solutions and alternatives. It is also a way of securing your investment. A strict evaluation of the business project, the importance of going through all the stages of the incorporating phases, understanding the overall procedures after the company was established – these are all essential features which guarantee success. Our team is available for providing any additional details regarding the topic above and the necessary assistance if interested to incorporate in this domain.

Tuesday, March 4, 2014

Open a recruitment agency in Romania

Romania delivers a wide range of employment resources for various industries, either with temporary attributes or with long-term contracts. If recruiting from our country for a different location, the greatest advantage concerns the highly-skilled capacities of professionals in Romania as opposed to their modest salary expectations. If recruiting for other companies in Romania, the offer proves even more comprehensive since education in our country comes with a large number of graduates with strong specific knowledge particular for each field. Apart from the recruiting tasks, an agency of this kind may also enlarge its portfolio according to market interests. Counseling services, for both employers and employees, are to be considered an important extra feature to be proposed to possible clients. If intending to start an employment agency in Romania, it becomes highly important to understand the necessities of the market. Probably, one of the most stringent demands regards the career guidance programs. On the other hand, employers constantly adjust their requirements since industries rapidly evolve towards new prerequisites. Perfecting systems in order to identify best candidates for each position proves essential in this area of industry. Additional services related to obtaining working permits for future employees may be taken into consideration because delivering a complete set of services, able to provide solid solutions for a large range of requests, plays a fundamental role in convincing possible customers.

Start an employment agency in Romania – specific legal features

As expected, when deciding to establish an employment agency for mediation and work placement abroad, legal requirements include some supplementary conditions. If recruiting for temporary work distinct standards are to be met. As a common trait for all employment agencies, the first step regards the registration procedures with the Trade Register. For temporary work the NACE code to be chosen is 7820, and for the rest of activities the 7810 NACE code is to be used. The extensive legal framework which regulates standards related to starting an employment company in Romania is represented by HG No. 277/2002 (amended by the H.G.790/2004). Not to forget that other different aspects might occur as legal obligations, depending on each particular profile. A set of various conditions concerning activities conducted has to be met in connection with the real capacity of the establishment to perform verification tests, evaluating skills sessions, building training strategies and programs able to support future employees. The staff working for the agency itself must be related, in terms of professional skills, to certain areas such as law, teaching or psychology, following a strict percentage scale. A proof must be delivered, sustaining the existence of a solid database able to provide the individuals interested in working abroad with consistent alternatives, reliable and official. Benefitting from professional help is essential when incorporating this type of agency. Additional requirements may interfere and understanding the specific functions of all incorporating phases proves absolutely necessary. Our team provides all legal support in this respect accurately explaining alternatives and pointing out contingent options. 

Monday, March 3, 2014

European Company Statute

The European Company solution exposes a set of rules and regulations able to sustain the applicability of an indeed-challenging concept but guaranteeing solid alternatives for large companies willing to extend their operations at European level.

This particular type of entity delivers a series of alternatives for large-scale companies willing to become more effective through their operations at European level. It suits particularly those companies which are established in different EU countries willing to merge or to create a joint venture or a subsidiary. It functions as a solid legal framework enabling business entities to rapidly handle their operations simultaneously increasing mobility. There are several ways of establishing such a company and the registration procedures and functions are regulated through The Council Regulation on the Statute for a European Company. This set of policies describes four means of incorporating this kind of business apparatus. For a first case we are dealing with a merger situation involving a group of companies from various EU states; a second option indicates the formation of a joint venture as well connecting more companies established in distinct member states. For a third alternative, the European Company offers the chance of registering a subsidiary related to a national company and the fourth circumstance allows the formation of a Societas Europaea (SE) by transforming a national company. Regulations impose a minimum subscribed capital of at least 120.000 EUR which clearly reduces the number of companies eligible for this type of business conversion only to extensive structures. The registered office shall be nominated according to the assignment of the majority of operations conducted by the business entity. A transfer is possible to another member state but it must be accurately justified, accompanied by a formal proposal and strictly following the appointed regulations. The name of the company has to keep the abbreviation SE at the end or at the beginning of the particular phrase indicating the distinguishing designation.

European Company Registration

In order to register a European Company in Romania the portfolio of documents must contain several supplementary papers. There must be added a set of official documents proving the existence of all companies involved through information provided by authorities in the countries of origin, evidence of payment for all expenses required by this process and the official announcement published in the Official Journal of the European Union. The project sustaining the entire approach must be provided as well together with documents able to prove that business entities involved are not insolvent companies. Only after concluding a settlement which states the involvement of employees in the conducted activities, the European Company can be formally recorded with the Trade Register. The worker involvement in such a structure is punctually established through the Council Directive supplementing the Statute for a European Company with regard to the involvement of employees and it has a particular interpretation which generally confers a distinguishing status to SEs. This structure is still improving since it concerns quite a challenging task that is the harmonization of such impressive business operations. The undisputed advantage of initiating the legal procedures for establishing the formal basis for this type of company actually concerns the unity at European level and it provides consistency within community’s borders. Our team is available for any additional details regarding this particular topic.