0114

Authorisation procedure and Trade Register aspects for CAEN 0114

The establishment of a company declaring as its main activity the CAEN code 0114 – Growing of sugar cane – requires going through the standard registration stages at the Trade Register (ONRC). When submitting the registration application, a sworn declaration under Law 359/2004 is completed, whereby the sole associate or administrator confirms compliance with the specific operating conditions for agricultural activity. In the case of sugar cane cultivation, no prior approvals from specialised institutions (such as the Ministry of Agriculture or the Sanitary Veterinary Directorate) are required, as the crop does not involve hazardous substances or industrial processes with major risk. However, to obtain APIA subsidies or state aid schemes, registration in the Farm Register and submission of the single area payment application are mandatory – these are carried out after the company is authorised by ONRC. Upon registration, it is recommended to explicitly mention CAEN code 0114 as the main activity and to include related codes (e.g., 0161 – Support activities for crop production) for completeness.

Regulatory framework, specific approvals and control institutions

The activity of sugar cane cultivation is regulated by EU and national agricultural legislation, including Emergency Ordinance No. 34/2000 on the organisation and functioning of agriculture. In the absence of special environmental or health approvals, operational control lies with the Tax Authority (ANAF) (by verifying declared income and subsidies received) and the Agency for Payments and Intervention in Agriculture (APIA), which checks the eligibility of cultivated areas. Additionally, County Agricultural Directorates may carry out thematic checks regarding the use of certified seeds and compliance with good agricultural and environmental conditions. To access EU funds (PNDR 2021-2027), the farmer must hold an approved Business Plan and register as a VAT payer if exceeding the exemption threshold (RON 300,000). Although there is no mandatory prior approval, it is recommended to notify the local mayor's office in whose area the cultivation takes place, especially if high-tonnage agricultural machinery is used on local roads.

Tax management, ANAF audit risk and specific accounting

From a fiscal perspective, income from the sale of sugar cane to processing plants falls under income from agricultural activities – taxation is based on the real income system (double-entry bookkeeping) or, for authorised individuals, based on income norms. Taxpayers applying the real system must separately record expenses for planting material, fertilisers, pesticides, labour costs, irrigation costs and land rent. Subsidies received from APIA (direct payments, coupled support schemes) are recorded as subsidy income and are taxed upon receipt – ANAF frequently checks the correlation between areas declared to APIA and income recorded in accounting. The audit risk is medium: ANAF inspectors may request supporting documents regarding actual production (sales invoices, delivery notes, harvesting minutes). For VAT, if the exemption threshold is exceeded, the standard rate (19%) or reduced rate (9% for the supply of seeds/plants – generally not applicable to raw sugar cane) applies. It is recommended to use the RO e-Factura system for all invoices issued to factories, to avoid VAT settlement delay (e-Factura reduces the settlement period from 45 to 15 days). Furthermore, seasonal employees must be correctly declared in REVISAL and the corresponding contributions (CAS, CASS, unemployment) paid – ITM inspections may be triggered by complaints or thematic checks in agriculture. Specific accounting involves separately recording stocks of finished products (harvested cane) and work in progress for land cultivated under a multi-year system (successive harvests). The annual closing involves revaluing production at standard or actual cost, in accordance with Order of the Minister of Public Finance No. 1802/2014.