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Authorisation procedure and Trade Register aspects for NACE code 0125

Registration with the Trade Register (ONRC) for the activity of cultivating fruit trees, berry shrubs, strawberries and nuts (NACE code 0125) is carried out by submitting the registration application accompanied by the constitutive documents. Sole traders (PFA) or individual enterprises (II) complete a sworn declaration under Law 359/2004 on the fulfilment of operating conditions. Companies (SRL, SA) submit the constitutive deed to the Trade Register. Local authorities may require a zoning certificate or building permit if the activity involves agricultural constructions (greenhouses, warehouses), but for simple cultivation on agricultural land this is not necessary.

The main object of activity must be NACE code 0125. It is recommended to complete relevant secondary codes: 0161 (support activities for crop production), 1031 (processing and preserving of fruit and vegetables) or 4631 (wholesale of fruit and vegetables). Registration of the tax vector with the Tax Authority (ANAF) involves submitting form 010 (for legal entities) or 070 (for sole traders). The start date of the activity is set as a working day after registration. For land over 2 hectares, registration in the Agricultural Register at the town hall and obtaining the holding code in the Unique Identification Register (RUI) from APIA are required.

Regulatory framework, specific permits and control institutions

The activities of cultivating fruit trees and nuts are regulated by Law 17/2014 on certain measures to regulate agri-food production and by Government Ordinance 30/2000 on the wine register and the production of table grapes (applicable only if vines are cultivated, which is not the case here). For nut and other tree crops, Law 383/2013 on the organisation and functioning of organic production systems applies (if opting for organic farming).

Control institutions include: the Tax Authority (ANAF) (for tax obligations), APIA (for subsidies and direct payments – registration with APIA is required to access CAP funds), the County Agriculture Directorate (phytosanitary inspections and quality control of planting material), the National Sanitary Veterinary and Food Safety Authority (ANSVSA, if fresh fruit is sold in authorised premises). Environmental permits are not required if no greenhouses or irrigation systems necessitating a water management permit are built. For the use of plant protection products, the rules of Government Emergency Ordinance 47/2018 must be observed and the employee or manager must hold a certificate as a user of phytosanitary products (if using substances from toxicity classes 1-3). Individual agricultural producers are exempt from this certificate if they use only class 4 (low toxicity) products.

If fruit is sold to processors or through own shops, sanitary veterinary and food safety registration (register of retail units) under HACCP is required, but for direct sales from the farm to the consumer, the regime for agricultural producers (Law 145/2014) applies – a sales booklet can be issued by the town hall, without VAT up to EUR 100,000/year (if exceeded, VAT is payable).

Tax management, ANAF audit risk and specific accounting

For NACE code 0125, the tax regime is that of agricultural income. Individuals (PFA, II, IF) may opt for taxation based on income norms (if they have not opted for real system accounting). The income norms are set annually by order of the Minister of Finance and are applied according to the cultivated area. For example, for 2023, the income norm for fruit tree orchards (excluding nuts) was around RON 400-600/ha, adjusted by correction coefficients depending on the area. Social contributions (CAS, CASS) are calculated on the net income (norm or real) and declared through the single declaration (form 212) by 25 May of the following year.

For SRLs, obligations include corporate income tax at 16% (or 1-3% on revenue for micro-enterprises, if revenues under EUR 500,000) and VAT on collection (if the threshold of RON 300,000 is exceeded). For growers selling to processors (preserve factories, juice factories), VAT is mandatory only if the threshold is exceeded. ANAF may initiate a tax audit if inconsistencies are found between the area declared to APIA and the declared income. High risk arises from undeclared income from direct sales (roadside, markets). Specific accounting involves recording the production obtained (kg of fruit/nuts per species), valuing inventories at production cost or market value (if IAS 41 for agriculture applies – mandatory only for large entities). Depreciation of plantations is made over the useful life of the trees (usually 15-25 years), according to accounting rules. Expenditure on fertilisers, pesticides, labour and land rent are fully deductible. VAT does not apply to purchases of agricultural land (exempt), but deductible VAT applies to purchases of machinery, seeds, planting material, consultancy services.

Employing staff requires registration in the REVISAL system, employment contracts with an agricultural specific (seasonal work – fixed-term contracts). For day labourers (up to 90 days/year), a day labourer contract under Law 52/2011 is drawn up and 10% withholding tax plus health contribution (10%) are paid at source. It is recommended to keep a day labourer register. In the case of APIA subsidies (direct payments – Single Area Payment Scheme), these are non-taxable income if they do not exceed EUR 10,000/year and are declared in the single declaration under 'non-taxable agricultural income'. Exceeding this threshold triggers taxation as income from independent activities. For establishing nut orchards, there are state aid schemes (PNDR 2021-2027) which require eligible expenditure of at least EUR 15,000 and are not cumulative with de minimis. The company must comply with cross-compliance conditions (rational water use, bird protection, etc.), otherwise it risks penalties and recovery of sums received.

In conclusion, NACE code 0125 requires a coordinated legal and tax approach from registration with the Trade Register to the management of accounting and environmental obligations. Consulting a senior tax consultant and a lawyer specialised in commercial law is recommended to optimise the business structure and minimise the risk of ANAF audits and penalties.