1031

Authorization procedure and Trade Register aspects for CAEN 1031

The establishment of a company that will carry out the activity of processing and preserving potatoes (CAEN 1031) requires going through the standard steps at the Trade Register (ONRC). The registration application is submitted according to Law 265/2022, accompanied by the constitutive act and the affidavit provided by Law 359/2004, through which the administrator confirms compliance with the legal operating conditions. It is mandatory to accurately classify the main activity objective under CAEN code 1031; any deviation will result in refusal of registration or, subsequently, sanctions from the ONRC. For existing companies that wish to expand, the form for amending the constitutive act with the new CAEN code is submitted, and the fiscal effects occur from the date of registration of the amendment. I recommend prior verification of the 2025 CAEN nomenclature, as updates that may affect code 1031 are possible.

Regulatory framework, specific opinions and control institutions

Potato processing activity is strictly regulated by sanitary-veterinary and food safety norms. ANSVSA controls the conditions of production, storage and marketing, requiring the sanitary-veterinary operating authorization certifying compliance of the production spaces with hygiene requirements. Also, the Public Health Directorate (DSP) issues an opinion regarding compliance with food hygiene and public health standards. If water is used in washing or boiling processes, a water management authorization from the Romanian Waters Authority (ABA) is required. For technological waste (peels, residues), an environmental permit according to Government Emergency Ordinance 195/2005, issued by the Environmental Protection Agency (APM), is necessary, and for atmospheric emissions (steam, odors), an atmospheric protection authorization is required. In case of using food additives or non-traditional ingredients, Regulation EC 1333/2008 applies; any deviation leads to suspension of activity by the Environmental Guard or DSV commissioners.

Fiscal management, ANAF audit risk and specific accounting

From a fiscal perspective, CAEN code 1031 does not benefit from special profit tax exemptions or excise-related facilities. VAT applies at the standard rate of 19% for finished products (frozen potatoes, chips, dehydrated mash). Raw materials (potatoes) purchased from individual agricultural producers may be subject to reverse charge (9% VAT if the invoice exceeds certain thresholds), and collection is done through the RO e-Factura system. ANAF may initiate an in-depth inspection if declared gross margins are below the market average (usually 25-40%) or if potato stocks in storage do not correspond with registered consumption. Accounting must distinctly reflect production costs: raw materials, direct labor, thermal energy (steam), water and waste treatment expenses. The monthly reporting obligation includes the D406 (SAF-T) declaration with detailed data for each production batch, and failure to meet deadlines attracts fines of 2,000-5,000 lei according to the Fiscal Procedure Code. For companies exporting processed products, rules of origin and bonded warehouse regime apply, with submission of customs declarations and phytosanitary documents. The major risk in this field is the erroneous assessment of the VAT taxable base for intra-Community purchases of raw materials, which can lead to VAT adjustments and penalties of 0.08% per day.