0990

Authorization procedure and Trade Register aspects for NACE 0990

Setting up a company that will carry out activities ancillary to mineral extraction (NACE 0990) involves going through the standard registration procedure at the Trade Register (ONRC), but with particularities related to prior authorizations. When submitting the registration application, the sworn declaration according to Law 359/2004 must be completed, whereby the manager certifies compliance with the legal operating conditions. Although NACE 0990 is not strictly regulated by ONRC in terms of obtaining prior approvals for registration, the specific nature of the activity requires that, after registration, the company obtain authorizations from the National Agency for Mineral Resources (ANRM) or from the competent authority in the mining field, depending on the nature of the services provided. For the main activity object, it is recommended to clearly state the types of ancillary services (e.g., drilling, boring, mining equipment maintenance) to avoid misinterpretations by ANRM inspectors. ONRC does not require additional approvals at registration, but the company must ensure it holds all environmental and occupational safety permits before actually starting to provide services.

Regulatory framework, specific approvals and control institutions

The main normative act governing mining activities, including ancillary services, is the Mining Law no. 85/2003, as subsequently amended and supplemented. Legal entities providing ancillary extraction services (e.g., underground transport, ventilation, drainage) must obtain from ANRM the operating license or service agreement, depending on the contract concluded with the mining concession holder. Also, for activities involving drilling or geophysical prospecting, the provisions of the Prospectors Law no. ... (in fact, Law 85/2003 also covers prospecting). Obtaining the occupational safety and health approval from the Labor Inspectorate, as well as the environmental permit from the Environmental Protection Agency, is mandatory because ancillary activities can generate mining waste or emissions. Without these authorizations, the company cannot operate legally. If ancillary services involve temporary processing of minerals (e.g., sorting, washing), the regime of mining waste management authorizations also applies. For prospecting activities, Law 85/2003 applies, and for exploration activities, Law 85/2003 and GEO 195/2005 on environmental protection. It is essential that the manager check whether the service provided requires a professional certificate or competency certificate, such as the operator's certificate for mining machinery.

Tax management, ANAF audit risk and specific accounting

From a fiscal point of view, companies with NACE 0990 are subject to 16% corporate income tax or microenterprise income tax if they meet the legal conditions (turnover under EUR 500,000, one or more employees, etc.). ANAF has an increased interest in this NACE class because ancillary services are often outsourced by mining operators, which can generate high value-added transactions and risk of undervaluation. It is recommended to keep rigorous accounting records, with written contracts for each service, detailing the volume of work, rates and invoicing conditions. The use of the RO e-Factura system is mandatory for all invoices issued to legal entities, and for those with a value over RON 10,000, mandatory e-Factura applies from 2024. Accounting must distinctly reflect the costs related to the services provided (materials, salaries, machinery) and follow specific consumption norms. A sensitive issue is the deductibility of depreciation expenses for mining machinery; ANAF verifies compliance with the useful life established by the catalog. To prevent an audit, the company must submit tax returns on time (D100, D101, D300) and pay contributions to the budget. For microenterprises, the tax vector at ONRC must be updated with NACE code 0990. If services are provided to a non-resident, the rules of reverse charge or VAT exemption apply, depending on the place of supply. It is recommended to consult a tax advisor for legal tax optimization, given that the interpretation of ancillary services can be difficult. Also, for transactions with related parties, transfer pricing documentation is required, as ANAF may adjust the taxable base. The write-off of scrapped machinery must be done in accordance with legal procedures, and the generated mining waste must be managed according to environmental legislation. Finally, compliance with all reporting obligations and timely payment of taxes reduces the risk of a detailed tax inspection.