Romania is a Constitutional Republic.
The present Constitution was adopted by the Parliament on 21 November 1991 and was subsequently amended and ratified by Law 429/2003, such amendment being effective as of 29 October 2003.
Overview over the different legal forms of Romanian companies according to the present laws.
The Romanian Constitution confirms among its aims a multi-party system, a free-market economy and the respect of human rights. Legislative power is vested in a bicameral Parliament that is made up of a lower house of 345 seats (Chamber of Deputies) and an upper house of 140 seats (Senate). Parliamentary elections are held every 4 years while presidential elections are held every 5 years.
The President is elected by direct universal vote and has powers that are limited by the Constitution. The President is required to:
* act in compliance with the provisions of the Constitution
* nominate the Prime Minister following consultation with the majority party
* promulgate laws passed by the Parliament
* co-operate with the National Security Council on relevant issues
Under the Constitution, private property is equally guaranteed and protected by the Romanian State.
Foreign nationals and stateless persons may obtain the right of ownership over land under the conditions resulting from Romania’s accession into the European Union or by virtue of domestic laws and other international treaties to which Romania has become a party. All statutory provisions pertaining to civil, commercial, criminal, and administrative and tax matters are enacted by the Parliament.
International treaties are binding only if ratified by the Parliament. Since the revolution in 1989, the reformation and harmonization of laws with EU standards has become a key driver in Romania’s efforts of joining the EU.
In 1994, Romania ratified the European Convention for the Protection of Human Rights and Fundamental Freedoms. In accordance with the relevant ratification law, Romania has agreed to enforce the rights guaranteed by this convention, including among other things the right of individual petition, and to recognize the competence of the European Court of Human Rights.
To this end, any Romanian citizen may bring a case against the Romanian State before the European Court, the rulings of which are binding upon the Romanian State.
Through the legislative initiatives of the recent years, many of the laws that are typical for a market economy have been enacted and have led to the relative stabilization of Romania’s legal system. The laws concerning dispute resolution and related procedures are well established in Romania. The concept of arbitration is also widely spread.
The court system is organized at the national, county and local levels and is divided into civil and criminal. The High Court is the highest judicial forum of Romania. Unlike the US Supreme Court, the Romanian High Court cannot exercise judicial review, adjudicating on the conformity of laws with the Constitution and other regulations of the Parliament to the same effect. This competence is attributed to the Constitutional Court of Romania. Moreover, judicial precedent does not constitute a recognized source of law.
NATO Accession
Romania officially joined the Alliance at the end of March 2004, some 55 years after NATO had been established.
Setting up a Business in Romania
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