Leasing Operations in Romania

I would like to undertake leasing and the presentation of some information about it would be useful. What, more exactly, is a leasing operation in Romania?

Parts of leasing operations are called locator / financier and lessee / user. Through the leases, the lessor / lender sends the lessee / user, for a specified period and at the request of the latter, the right to use a property whose property is the first in return for a periodic payment called a leasing installment.

 At the end of the specified period, the lessor / lender has the obligation to observe the option of the lessee / user to purchase the asset, to extend the lease without changing the nature of the lease or terminating the contractual relationship.

The lessee / user has the possibility to buy the asset before the end of the leasing period, but not earlier than 12 months, if the parties so agree and if all the obligations that have been assumed by the contract are fulfilled.

On what types of goods can the right of use be obtained under a leasing operation in Romania?

According to the legal framework of the leasing operations, respectively the Government Ordinance no. 51/1997 on leasing and leasing companies, are immovable property by their nature or which become immovable through their destination, but also movable goods which are in the civil circuit.

Non-leased assets are theater plays, patents, audio or video tapes, manuscripts, intangible assets and copyrights.

However, computer usage rights may also be leased as proprietary rights in computer programs, but copyright is required to have authorized the operation.

As a legal person, can I take part in such leasing operations in Romania?

Of course. The leasing operations may include, as lessee / user, any natural or legal person, whether Romanian or foreign.

The locator / financier in such operations is owned by a leasing company, Romanian or foreign legal person.

How are leasing operations carried out?

The first step in conducting a leasing operation in Romania is the submission of a request by any natural or legal person to state which is the good that will be the object of the lease. The application so submitted shall be communicated to the leasing company together with the documents proving the financial situation of the requesting person in order to obtain a financial offer from the company.

It is the user who will have to choose the good and contact the supplier for this purpose.

The leasing company will then make the financial verification of the natural or legal person on the basis of the documents submitted on request and, if it agrees, the company will conclude the lease and purchase the asset by paying the full value to the supplier. The supplier has the obligation to deliver the good.

There are two types of leasing contracts, namely the finance lease and the operating lease.

Under the Fiscal Code, a lease is a finance lease if it meets at least one of the following conditions:

a) expressly provide for the transfer of ownership of the good to the user when the contract expires;

b) transfer the risks and benefits of ownership of the property to the user at the time the lease contract becomes effective;

c) the user has the option to purchase the asset at the time the contract expires - the percentage of residual value must be less than or equal to the difference between the normal maximum duration of the lease and the duration of the leasing contract in relation to the maximum normal lifetime in percentages;
Residual value is the amount at which the transfer of the right to ownership of the good to the user is made after all the lease rates and other amounts due under the contract have been paid by him.
This value shall be determined by the Contracting Parties.

d) the lease term exceeds 80% of the normal maximum operating life of the asset;

e) the total amount of the lease rates (excluding ancillary costs) is greater than or equal to the input value of the good.
The entry value of the good is its purchase cost.

What are the leasing companies in Romania and how are they organized?

Companies other than banks that carry out financial leasing as a lending activity on a professional basis must be registered with the National Bank of Romania as non-bank financial institutions before starting this activity, and must have a share capital of at least the lei equivalent of EUR 200,000.

With regard to the categories of leases which leasing companies may conclude, these may be contracts having as their object:

a) Existing constructions that are owned by the lessor / lender or which will be purchased by them and which are built on the land of the lessor / financier to be purchased by the lessor / financier or over which he has a superficial right ;

b) acquiring the right to build a building on a land owned by the lessor / financier;

c) Existing constructions that are owned by the lessor / financier and are built on its land or on a land owned by a third party, land on which the lessor / lender has a right of use.
Leases are complex operations whose deployment requires thorough information in this area. Darie, Manea & Associates are at your disposal in this regard. Do not hesitate to contact one of our lawyers for more information on leasing and leasing contracts as well as for specialized legal advice regarding the establishment of a leasing company.