0620

Authorization procedure and Trade Register aspects for CAEN 0620

CAEN code 0620, officially named 'Extraction of natural gas', involves a complex authorization procedure at the Trade Register (ONRC) and compliance with specific formalities. When registering with the Trade Register, the applicant must submit a standard application, the constitutive act, and documents attesting to the administrator's capacity and the registered office. For this code, the provisions of Law 359/2004 on simplifying registration apply, so a declaration on one's own responsibility is submitted, stating that the company meets the legal operating conditions. It is mandatory to state the main object of activity exactly as in the CAEN Rev. 2 classification: 'Extraction of natural gas'. Also, the ONRC verifies the existence of prior approvals, such as those from the National Agency for Mineral Resources (ANRM) or environmental authorities, which may be requested at incorporation or later, depending on the specifics of the activity. Particular attention is paid to secondary objects of activity, which must be compatible and not require additional uncovered authorizations.

Regulatory framework, specific approvals, and control institutions

The extraction of natural gas is strictly regulated by the Gas Law no. 123/2012 and the Mining Law no. 85/2003, as subsequently amended. The main approval is the exploitation license issued by the ANRM, which also involves environmental assessments (environmental agreement from the Environmental Protection Agency (APM), according to Government Emergency Ordinance 195/2005). For related activities, such as drilling or gas treatment, additional regulations apply: construction permit for installations, approvals from the Inspectorate for Emergency Situations (ISU - Fire Brigade), and occupational safety authorizations. The control institutions are multiple: the Tax Authority (ANAF) (for taxes and duties), the Environmental Guard, the Labor Inspectorate, the Romanian Technical Supervision Authority (ISCIR) (for pressure installations), and the ANRM. Companies operating in this field must have a technical manager certified by the ANRM. Legally, the Fiscal Code provides special taxes for the extraction of mineral resources, such as the exploitation tax and the petroleum royalty (calculated according to Law 256/2018). Companies must report quarterly the extracted quantities to the ANRM and pay the royalties to the state budget. Non-compliance with these obligations leads to sanctions and suspension of the license.

Tax management, ANAF audit risk, and specific accounting

From a fiscal perspective, companies with CAEN 0620 are subject to a special regime. They are obliged to register as VAT payers if they exceed the exemption threshold (RON 300,000 as of January 1, 2024), and extraction operations are exempt from VAT without the right of deduction (Art. 294 para. 1 lit. e of the Fiscal Code) if they are considered mining exploration and exploitation activities. However, deliveries of gas to third parties are taxable. It is recommended to consult a tax advisor to correctly determine the regime. The risk of ANAF audit is high due to royalties and special taxes; inspectors verify declarations regarding extracted quantities (Form 101, Declaration 394). Accounting must highlight exploitation costs (drilling, extraction, internal transport) and separate exploration assets (according to IAS 16 or IFRS 6). For non-VAT entities, the single declaration (Form 212) regarding estimated income is submitted. Obligations also include submitting Declaration 300 (VAT return) monthly or quarterly, as applicable. Companies must set up provisions for decommissioning wells and environmental remediation, according to environmental legislation and accounting standards. Another aspect is the tax vector: it is recommended to register with ANAF with the correct CAEN code, otherwise there is a risk of reclassification ex officio and imposition of penalties. Also, transactions with related parties must be documented through the transfer pricing file, as ANAF closely monitors these operations in the gas industry. In conclusion, tax and accounting management for CAEN 0620 requires a specialized approach, with constant monitoring of legislative changes and ANAF guidelines.