0115

Authorization procedure and Trade Register aspects for CAEN 0115

CAEN code 0115 – Tobacco growing – is registered with the Trade Register (ONRC) via the single declaration, specifying the main or secondary object of activity. It does not require a special operating permit from ONRC, but the registration formalities under Law no. 359/2004 on simplifying registration in the Trade Register must be followed – a sworn declaration on fulfilling the operating conditions is filed. The registered office may be at home or in a leased space, but must correspond to the agricultural destination (requires supporting documents for the land: lease agreement, producer certificate, land register extract). If the activity is carried out on land over 2 ha, registration as a legal person (LLC, SA) or as PFA/II is recommended – but PFAs are limited to agricultural production on small areas, under Government Emergency Ordinance 44/2008. Check with ONRC that the company name does not misleadingly include the term 'tobacco'.

Regulatory framework, specific permits and control institutions

Tobacco cultivation is subject to strict regulations due to state control over raw tobacco production. Institutions that may carry out targeted checks include: Sanitary Veterinary and Food Safety Directorate (DSV) – only if tobacco is dried/fermented in spaces that may be assimilated to food warehouses; Public Health Directorate (DSP) – checks working conditions and nicotine exposure; Territorial Labour Inspectorate (ITM) – for occupational safety during drying and handling of leaves; Inspectorate for Emergency Situations (ISU) – fire safety permit if there are driers with heat sources; Payments and Intervention Agency for Agriculture (APIA) – for subsidies and area control; Ministry of Agriculture – registration as an agricultural producer and compliance with production quota rules is required. No operating license is issued by the Tax Authority (ANAF), but authorisation as a tax warehouse is required if raw tobacco is stored for marketing (Law 227/2015, art. 369). Also, environmental rules on managing vegetable waste and pesticides must be complied with – a Notification from the Environmental Guard is required for temporary storage of hazardous waste.

Tax management, ANAF audit risk and specific accounting

From a tax perspective, tobacco growers are subject to high ANAF audit risks due to high margins and known evasion in the tobacco chain. Accounting must correctly reflect production costs: purchase of seeds, fertilisers, pesticides, seasonal labour, drying and fermentation. Labour costs are deductible only if correctly declared to ITM and withheld at source. The tax base is adjusted through stocks – valuation of work in progress and raw tobacco stocks is at production cost or net realisable value, under Order of the Minister of Public Finance 1802/2014. ANAF may verify the physical existence of stocks and correlation with transport documents (waybills). Under the RO e-Factura system, all invoices issued to traders (tobacco buyers) must be declared. Registration in the Virtual Private Space (SPV) for submitting VAT returns and recapitulative statements is recommended. The anti-fraud control risk is high on the tobacco chain – any discrepancy between declared production and actual stocks leads to seizure and VAT adjustments. Separate accounting by crop is mandatory – an analytical chart of accounts per land lot is recommended. Do not forget the obligation to submit the single declaration to ANAF for income from independent activities (if carried out as PFA/II).