0130

Authorization procedure and Trade Register aspects for NACE 0130

The establishment of a company that will carry out the activity of "Cultivation of plants for propagation" (NACE 0130) involves going through the standard registration stages at the Trade Register (ONRC), with specific mentions regarding the object of activity. When submitting the registration application, the associates or administrators must declare the main object of activity according to the NACE Rev. 2 classification, namely 0130. It is mandatory to submit a declaration on one's own responsibility (according to Law 359/2004) certifying compliance with the legal conditions for exercising the activity, including those regarding the possession of an agricultural surface or a lease contract.

For the registered office, if it is located at the personal domicile of an associate or administrator, the notarial consent of the owner (if not the owner) and, sometimes, the approval of the mayor's office for carrying out agricultural activities are required. A prior visit by a representative of the Trade Register (ONRC) or the Tax Authority (ANAF) is not mandatory, but at the time of registration, the fiscal vector will be completed through declaration 010, indicating the relevant NACE codes. For NACE 0130, there is no special authorization regime at the Trade Register, only standard registration. However, the company must register in the Agricultural Register at the mayor's office in whose jurisdiction the cultivated lands are located.

Additionally, it is recommended to request a fiscal registration certificate (CUI) and obtain the constatatory certificate attesting the object of activity. For companies that trade seeds or planting material, registration with the National Phytosanitary Authority (ANF) is required to obtain phytosanitary authorizations.

Regulatory framework, specific approvals, and control institutions

The activities of cultivating plants for propagation (including the production of seeds, cuttings, seedlings) are subject to phytosanitary control exercised by the National Phytosanitary Authority (ANF), subordinated to the Ministry of Agriculture and Rural Development (MADR). The main normative act is Law 186/2017 on plant health, which transposes EU Regulation 2016/2031. Cultivators must register with the ANF and comply with the technical norms regarding the production, control, and marketing of seeds and planting material. Thus, for activities involving plant propagation, it is mandatory to obtain an authorization as a producer of planting material or seeds, issued by the MADR.

Furthermore, if agricultural land is used, the provisions of Law 18/1991 (Land Fund Law) and Law 17/2014 on land leasing apply. For irrigation systems, approvals from the National Agency for Land Improvements (ANIF) may be required. In the case of using chemical substances (pesticides, fertilizers), the regulations on the management of plant protection products apply, and users must hold a professional user certificate. Control institutions include the ANF, the National Environmental Guard (for agricultural waste management), and the Territorial Labor Inspectorate.

Tax management, ANAF audit risk, and specific accounting

From a VAT perspective, cultivators of plants for propagation may benefit from VAT exemption for supplies of seeds and planting material to farmers (according to Article 291(2)(p) of the Fiscal Code), but only if they are agricultural producers registered as taxable persons. For sales to legal entities, issuing invoices through the RO e-Factura system is recommended. When determining the tax base, all subsidies received from APIA are included, which are taxable as income from agricultural activities.

The audit risk from ANAF is moderate, with an emphasis on verifying the reality of operations (existence of crops, use of inputs) and the correctness of VAT deduction for purchases of seeds, pesticides, agricultural diesel. It is recommended to keep separate records for each plot, recording costs and production, as well as supporting documents for received subsidies. Specific accounting involves the valuation of perennial plant stocks (in the case of fruit or vine plantations) in the category of tangible assets (biological cultures), with depreciation according to their useful life. Additionally, the taxation regime for micro-enterprises or corporate income tax applies, depending on the legal thresholds. For income from the sale of certifiable seeds, an income tax exemption may be requested under the facilities for the plant sector, subject to the fulfillment of legal conditions.