1083

Authorization procedure and Trade Register aspects for CAEN 1083

For establishing a company that will carry out tea and coffee processing activities (CAEN code 1083), registration with the Trade Register (ONRC) is done in compliance with the provisions of Law No. 265/2022 on the trade register. When submitting the registration application, CAEN 1083 must be specified as the main object of activity, and if related activities are also carried out (e.g., packaging, distribution), these shall be mentioned as secondary objects. For legal entities, the minimum share capital is 200 lei (LLC), while for authorized natural persons (PFA) or individual enterprises there is no minimum capital, but registration as a VAT payer is required if turnover exceeds the threshold of 300,000 lei. An important aspect is obtaining the sanitary-veterinary and food safety approval from the Sanitary-Veterinary and Food Safety Directorate (DSVSA), as coffee and tea processing falls under Regulation EC No. 852/2004 on the hygiene of foodstuffs. Also, if the production space is owned, a land register extract must be submitted. The articles of incorporation must mention the registered office and workplaces, and for the latter, prior registration with ONRC will be requested. The legal term for resolving the registration application is 3 working days from the submission of the complete documentation, but in practice it may be shorter by using the ONRC online system.

Regulatory framework, specific approvals and control institutions

The field of tea and coffee processing is strictly regulated by national and European norms on food safety. Operators in this sector must register with the National Sanitary Veterinary and Food Safety Authority (ANSVSA) according to Order No. 111/2008, and the production spaces must meet the hygiene conditions provided by HACCP. The finished products are subject to environmental control by obtaining the environmental permit from the Environmental Protection Agency (APM), especially if the process generates waste or emissions. For marketing the products, labeling is required in accordance with EU Regulation No. 1169/2011 on the provision of food information to consumers. Additionally, if extraction of caffeine or other substances is carried out, specific regulations on food additives may apply (EU Regulation No. 1333/2008). Periodic inspections are carried out by DSVSA, and in case of irregularities, fines may be imposed from 5,000 to 50,000 lei, according to Law No. 150/2004 on food safety.

Tax management, ANAF audit risk and specific accounting

From a fiscal perspective, the activity of tea and coffee processing falls under CAEN code 1083, and income is considered income from production, subject to corporate income tax (16%) or micro-enterprise income tax (1% or 3% depending on the number of employees). VAT applies at the standard rate of 19% for sales of finished products. A major ANAF audit risk is the correctness of recording inventories of raw materials (green tea, green coffee) and finished products, given the specificity of the technological process involving losses through drying, roasting or grinding. It is recommended to prepare a production register and standard cost calculation sheets. Also, expenses for purchases of raw materials from outside the EU (e.g., green coffee from Brazil, tea from China) are subject to customs duties and VAT on import, and to justify costs, customs documents and certificates of origin are required. In case of exports, a VAT exemption may be requested. Accounting must reflect production operations distinctly, and at the annual inventory, specific consumptions are checked. ANAF may also verify the correct application of goods accompanying documents (e-Transport) for transports of raw materials and finished products, based on the RO e-Transport system. For tax optimization, state aid schemes for investments in ecological processing technologies may be used, but in compliance with de minimis aid rules.