Business Licensing Reforms in Romania

Efficient business licensing procedures influence the ease of doing business and play a critical role in attracting investment and fostering economic growth. When well designed and effectively managed, licensing systems ensure that economic activities comply with safety, environmental, labour, and market standards, without imposing unnecessary burdens on business. Romania has made notable progress in improving its business environment, including the adoption of a reform to streamline licensing procedures in the industrial sector. However, as highlighted in the OECD Product Market Regulation, Romania's licensing system remains more restrictive than the averages for the OECD and the European Union. Entrepreneurs must comply with multiple requirements and lack a single source of information to understand their licensing requirements. This can weaken market development, harm competition and productivity growth. This report outlines the key features of the business licensing system in Romania, its main barriers and ways to simplify it, with a special focus on the commerce and service sectors. It includes practical recommendations to make licensing processes more efficient, predictable and investor friendly.