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Authorization procedure and Trade Register aspects for NACE 0145

Setting up a company with the main activity NACE code 0145 (Raising of sheep and goats) requires going through the standard registration steps at the Trade Register (ONRC), with special mentions regarding the justification of the registered office and operating capacity. When submitting the registration application, a sworn statement according to Law 359/2004 is attached, by which the associate/administrator confirms compliance with the operating conditions, without requiring prior environmental or sanitary approval at the time of establishment. However, for the actual performance of the activity, authorizations issued by the Sanitary Veterinary and Food Safety Directorate (DSVSA) and the Environmental Protection Agency (APM) are mandatory. We recommend that, prior to registration, a lease or loan for use contract be concluded for the land and shelters intended for animal raising, as ONRC may request proof of the right to use the production spaces. Also, when establishing secondary activity objects, it must be considered whether they involve the processing of meat, milk or wool, in which case the relevant NACE codes are added (e.g. 1011 for meat processing, 1051 for dairy products manufacturing).

Regulatory framework, specific approvals and control institutions

The activity of raising sheep and goats is strictly regulated by Government Emergency Ordinance no. 79/2008 on the identification and registration of animals, as well as by sanitary veterinary legislation. Farmers must request the registration of the holding with the county DSVSA and obtain a holding code in the National System for Identification and Registration of Animals (SNIIA). For shelter spaces, a sanitary veterinary operating approval is required, and for feeding and manure storage, an environmental permit from APM is imposed. If the activity also includes the commercialization of live animals, meat, milk or eggs, the obligation to register as a retail unit with DSVSA is added. Also, the transport of animals falls under EC Regulation 1/2005 on the protection of animals during transport, and drivers must hold a certificate of professional competence. Last but not least, the management of animal by-products (carcasses, manure) must be carried out in accordance with EC Regulation 1069/2009, through contracts with authorized incineration-neutralization units.

Tax management, ANAF audit risk and specific accounting

Fiscally, income from the sale of sheep/goats, milk, wool or meat generally falls under the category of income from agricultural activities taxed according to Title II of the Fiscal Code (profit tax) or according to the flat-rate income system for authorized individuals (PFA). For companies, subsidies received from APIA (e.g. the sheep/goat subsidy per head) are taxable income, recorded in accounting based on monthly trial balances. VAT applies to supplies, with the possibility of using the reduced rate of 9% for the supply of live animals and meat, and 5% for milk and dairy products (if the sanitary authorization conditions are met). The obligation to use the RO e-Factura system for all supplies to legal entities is mandatory as of January 1, 2024, and for supplies to individuals, only upon request. The risk of an ANAF audit is high in the case of cash settlements and intermediate sales through fairs or private slaughterhouses, which is why it is recommended to strictly prepare origin documents (e.g. purchase records for animals) and accompanying waybills. From an accounting perspective, expenses for feed, veterinary medicines and depreciation of shelters must be recorded analytically for each batch of animals, in order to justify costs in the event of an audit. Do not forget the obligation to submit the annual declaration on income from subsidies (Form 200) and to pay the corresponding social insurance (CAS) and health insurance (CASS) contributions, if the associate is also an active administrator.