DOING BUSINESS IN ROMANIA; FOREIGN DIRECT INVESTMENTS (FDI); TRADING ENTITIES-INVESTMENT MECHANISMS; PROTECTION SYSTEM; GUARANTEES

Corina Cristina Buzdugan, Elena Mihaela Fodor and Rodica Diana Apan
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Rodica Diana Apan: Christian University ”Dimitrie Cantemir” Bucharest, Facultaty of Law, Cluj Napoca,Romania

Interdisciplinary Management Research, 2015, vol. 11, 694-705

Abstract: The present study focuses on a number of essential features of foreign direct investments (FDI). The first part of the study indicates illo tempore the judicial landmarks of the state’s policy on FDI, in the context of economic policy and in connection to the landmark regulations in the field, from 1990 up to the present. This part also explains the investment mechanisms now traditional in the field of FDI, namely companies, subsidiaries or their branches. One of the most relevant principles in setting up companies, expanding their activity at the European Union level and developing FDIs is that of the freedom establishment on the territory of another Member State, other than the state of the national. In determining the law applicable to the organic statute of the company as well as to subsidiaries and branches set up in Romania by the national from another Member State, their nationality must be established, which relates to their registered office. If the determination of their registered office is rigorously established through existing regulations at the national level, the determination of the real office, whose landmarks for regulation are not clearly determined, may attract uncertainty concerning the law applicable to the organic statute of the company and its dismemberment. The second part of the study elaborates the protection and guarantees, those shared by foreign and Romanian investors as well as those of the foreign investors alone. This part casts a targeted look at the interdiction instituted ex lege by the nationalisation, expropriation or other measures having an equivalent effect on the FDI, excepting the cases where the requirements of the law are met, as well as on the foreign investor’s right of choice regarding the entities and procedures that may be applied for the resolution of potential disputes between him and the Romanian state, concerning rights and obligations of parties involved in an FDI relationship.

Keywords: foreign direct investments; investment mechanism; protection system; guarantees (search for similar items in EconPapers)
JEL-codes: E32 L21 M2 (search for similar items in EconPapers)
Date: 2015
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