Almost 600 Romanian firms with foreign shareholders were created in January, and the value of the subscribed capital for these firms was of EUR 165 million, according to recent statistics. In the first quarter of 2014, 1,550 firms with foreign shareholders were created in Romania.

This brings the number of Romanian companies with foreign shareholders slightly above 193,000 in March 2014, according to data from the Trade Registry, and the subscribed capital by these firms to some EUR 38.2 billion.

Most of the companies that were registered in January are in Bucharest – 153, followed by Timis – 30, Bihor – 28, and Ilfov, 28. Most of the new foreign investors came from Italy – 136, Germany – 29, Turley – 29, France – 26 and Hungary – 25.

In March, 700 firms with foreign capital upped their social capital, our of which 40 German firms brought about the biggest investments: EUR 46.3 million of the total EUR 131 million in social capital of the new firms on this niche.

Largest foreign investors, as of March

Star Assembly, a company with Germany shareholders, had the biggest social capital subscribed in March – EUR 25.1 million, followed by Chevron Romania Exploration and Production, which is an American company, but registered via the Netherlands. Chevron subscribed a social capital of EUR 21 million. Energy, oil and gas products and services supplier Flenco Eastern Europe, an Italian investor, held third place, with EUR 17.2 million investments in Brasov.

The source of foreign investments

Judging by the stock of investments, the Netherlands is the largest foreign investment source to Romania, with EUR 7.5 billion in subscribed social capital at end of March 2014, and 4,883 firms with Dutch shareholders. Then comes Austria, with a stock of EUR 4.9 billion in social capital, and 6,700 firms with Austrian shareholders.

But Italy has the largest number of firms in Romania – 37,700 companies with Italian shareholders, with a social capital of EUR 1.7 billion in total. Germany is next, with 20,000 firms, and a stock of EUR 4.4 billion.

A group of 5,449 Romanian firms have Cypriot shareholders, and only 15 have shareholders from the Dutch Antilles, and 379, shareholders from the British Virgin Islands, all perceived as tax havens.

Turkish investors control 13,575 Romanian firms, and a stock of EUR 500,000 in social capital, and and Hungarian investors, 12,356 Romanian firms, with an investment volume of EUR 661,000.

There are 11,056 firms with Chinese investors in Romania, 4,800 with British investors, and 6,700 firms with American shareholders.

How many foreign companies registered in Romania every year?

Last year, Romania saw 6,600 new companies with foreign shareholders, a number which stayed almost flat in the previous four years. This is however around half of the umber of foreign companies registered yearly between 2004 and 2008, during the economic boom, an evolution which is also reflected in the drop of yearly foreign investments to Romania.

Foreign direct investments in Romania amounted to EUR 282 million in the first two months of the year, up 35.6 percent compared to January-February 2013, according to data from the country's National Bank BNR.

Last year, foreign direct investments – FDI – were up by a quarter on the previous year, reaching a peak of EUR 2.7 billion, the highest in four years.

The peak year for foreign direct investments (FDI) was 2008, with EUR 9.4 billion, but the year after, they went down to EUR 3.4 billion, and to EUR 2.2 billion in 2010. The year 2012 brought the first rise after the financial crisis hit, EUR 2.1 billion.

editor@romania-insider.com