0119

Procedure for authorization and Trade Register aspects for CAEN 0119

Upon incorporation of a company or modification of the business object, CAEN code 0119 is declared to the Trade Register (ONRC). Standard procedure: filing the registration application, the constitutive act, and the affidavit in accordance with Law 359/2004. The articles of association must include the main and secondary objects (e.g., related animal farming). The company is registered in the Trade Register and receives the single registration certificate, the extract, and proof of fiscal registration.

For CAEN 0119 no operating permits from ONRC are mandatory, but endorsements are required for growing plants on agricultural land: a certificate from the local municipality where the land is located, proof of land use rights (lease contract, sale-purchase, etc.). If labor is used, it must be declared to the Labor Inspectorate (ITM) and individual employment contracts must be signed. For employees, mandatory communication is made.

CAEN code 0119 is "Growing of other non-perennial crops" and includes: cereals (wheat, corn), textile plants (flax, hemp), oilseeds (sunflower, rapeseed), forage plants (alfalfa, clover), root crops (sugar beet), etc. Excluded is permanent cultivation (fruit trees).

Regulatory framework, specific endorsements and control institutions

Main normative act: Law No. 17/2014 on agricultural development, and Government Ordinance 11/2005 on the marketing of seeds. For the use of certified seeds, it is mandatory to comply with the norms of the National Research and Development Institute for Biotechnology (INCD). Also, for the use of plant protection products, Government Emergency Ordinance 24/2000 is respected and a producer certificate (issued by the municipality) is obtained.

Inspections carried out by: Tax Authority (ANAF) (for VAT, income tax, contributions), Sanitary Veterinary and Food Safety Directorate (DSVSA) (if forage plants or by-products are produced and marketed), Environmental Guard (for management of pesticide packaging waste), Labor Inspectorate (ITM) (working conditions). An environmental clearance from the Agency for Payments and Intervention in Agriculture (APIA) is recommended for area payments and subsidies.

Institutions with authorization role: Municipality (producer certificate), APIA (for single area payment scheme, compensatory payments), Paying Agency (for subsidies). For accessing EU funds (National Strategic Plan 2023-2027), a file is submitted to the Agency for Financing Rural Investments (AFIR).

Tax management, ANAF audit risk and specific accounting

Taxpayers conducting CAEN 0119 are payers of corporate income tax (16% rate) or micro-enterprise income tax (1% or 3% of revenue, if turnover is below EUR 500,000 and they have at least one employee). Agricultural activity may be exempt from VAT for agricultural producers (special scheme for farmers, according to Article 315 of the Fiscal Code), but with the option to apply VAT at the standard rate (19%) or reduced rate (9%) for deliveries of cereals. If the VAT exemption threshold (RON 300,000) is exceeded, they register as a VAT payer through declaration 010 (amendment).

Accounting must record revenue from crop sales, expenses for seeds, fertilizers, pesticides, fuel, salaries, depreciation of machinery. Obligation to transmit invoices in the e-Invoice system for cereals deliveries: from January 1, 2024, for all operations with agricultural products, RO e-Factura is used with a deadline of 5 working days (or 5 days from delivery). Declaration 300 (VAT return) and declaration 394 for deliveries with VAT to legal entities are completed. For APIA subsidies, income is recorded based on the payment decision.

ANAF audit risk focuses on: underestimation of actual revenue (sales without invoice, incorrect use of reduced VAT rate, lack of supporting documents for subsidies). It is recommended to keep the single control register, technological records (route sheet, phytosanitary treatment register). In case of unannounced inspection, the physical existence of crops is checked. For the relationship with APIA, the single area application is completed by May 15, and if irregularities are found (declared area different from measured area), administrative sanctions are applied.

For hiring seasonal staff (daily workers), a part-time employment contract or a volunteer contract may be used. Fiscal obligations: income tax (10%), social security contribution (25% of gross salary), health insurance contribution (10% of gross salary), and for daily workers a 3% income tax on gross income is paid (Law 52/2011). Registration in the REVISAL database at ITM is recommended.