Cris-Tim has founded a company in Cyprus, Rangeglow Limited, that has taken over more than 99 percent of the shares of Recunoştinţa Prodcom Impex and Cristim 2 Prod Com, two of the group’s main entities, whose equal shareholders are Radu and Cristina Timiş.

“We resorted to this procedure, because legislation regarding holdings is non-existent in Romania, and a group of companies, such as Cris-Tim, stands to suffer, at least from a tax point of view. Thus, if I want to invest in one of the companies in the group, then I do not have to pay thousands of taxes. At present, there is no benefit for persons operating groups in Romania, namely benefits that would lead to the simplification of activities, an ease of cash transfers between enterprises and VAT compensation [value-added tax], etc,” the President of the Cris-Tim group, Radu Timiş, told Business Standard.

Cris-Tim’s founder is not the only businessman who insists on the importance of a holding law in Romania. Robert Redeleanu, the Chief Executive Officer of Scandia, leader on the canned meat market, told Business Standard one month ago how necessary this law is, “considering that certifying a holding is a common practice in the West, but is now unaccepted in Romania.”

The opinion of the two officials is shared by businesspeople involved in the “Private Government” project organized by Business Standard, who said that the lack of legislation in favor of holdings leads them to relocate their businesses to other friendlier countries, such as Luxembourg, the Netherlands, or Cyprus.