0143

Authorisation procedure and Trade Register aspects for CAEN 0143

To establish a company that will carry out the activity of raising horses and other equines (CAEN 0143), the standard procedure at the Trade Register (ONRC) includes submitting the registration application, the constitutive act and the affidavit according to Law 359/2004. It is mandatory to specify the main object of activity (CAEN code 0143) and, if applicable, secondary objects (e.g., 0111 - growing of cereals, 0162 - animal farming activities, 4789 - retail sale of other products). In the case of PFA or Individual Enterprises, the sole declaration is submitted to the Tax Authority (ANAF). For LLCs (SRL), the minimum legal share capital is 1 RON, but to obtain European funds (if applicable), a higher capital is recommended. The resolution period at ONRC is 1-5 working days, and after registration, the registration certificate is obtained and the unique registration code (CUI) is assigned. Subsequently, the registration declaration with ANAF (form 010) is submitted for registration in the fiscal vector. No special authorisations from ONRC are required for this CAEN code, but sanitary veterinary approvals are required (see next section).

Regulatory framework, specific approvals and control institutions

The raising of equines falls under the sanitary veterinary legislation. The main control authority is the National Sanitary Veterinary and Food Safety Authority (ANSVSA) and its county directorates. Before starting the activity, it is mandatory to register the holding with the county DSVSA, obtaining a holding code. Also, for the identification of equidae, the electronic identification system (microchipping) is applied according to national and European legislation (EU Regulation 2015/262). Specific approvals include: the sanitary veterinary authorisation for operation (issued after inspection of the location), the approval regarding the management of animal waste (through a contract with an authorised operator), and if products (milk, meat) are marketed, a sanitary veterinary authorisation for processing is required. Additionally, ANIF (National Agency for Land Improvement) may be involved if pastures are exploited, and APIA (Agency for Payments and Intervention in Agriculture) for agricultural subsidies. For constructions (stables, paddocks), a building permit is requested from the local mayor's office. Control institutions include: ANAF (tax inspections), ITM (labour relations, occupational safety), Environmental Guard (waste management) and DSVSA (sanitary veterinary controls).

Fiscal management, ANAF audit risk and specific accounting

From a fiscal point of view, the activity under CAEN 0143 is subject to the general rules of the Fiscal Code. For micro-enterprises (turnover below 500,000 euros), the income tax is 1% (or 3% for inactive companies). VAT applies if the turnover exceeds the threshold of 300,000 RON (approximately 60,000 euros) – threshold reduced as of January 1, 2024; below this threshold, one may opt for VAT exemption. The VAT taxable base is the value of sales of equines, feed, stud services, etc. Social contributions (CAS, CASS) apply to employees or to the sole associate (if PFA). Major ANAF audit risk: non-declaration of income from the sale of equines, incorrect classification as 'agricultural activity' without respecting the conditions (e.g., there must be a minimum of agricultural land to benefit from fiscal facilities). ANAF analyses the fiscal vector: checks whether the company has submitted declarations 100 (VAT), 112 (contributions), 300 (VAT return), etc. Specific accounting requires separate records of feed, veterinary medicine expenses, depreciation of stables and equipment (categories: fixed assets, if exceeding 2,500 RON). For subsidies (from APIA), income is recognised as conditions are met. The RO e-Factura system is mandatory for B2B relationships or for transactions with authorities. The removal from activity of animals (scrapping) is recorded by a report, affecting the taxable base. Recommendation: consult a certified accountant for the correct preparation of the sole declaration and annual financial statements.