1107

Authorization procedure and Trade Register aspects for CAEN 1107

Registration with the Trade Register (ONRC) for CAEN 1107 requires a clear specification of secondary activity objects. Code 1107 includes the production of bottled natural mineral waters, spring waters or drinking waters, carbonated or non-carbonated soft drinks (including cola type, lemonade, concentrated syrups). In the registration application, it is recommended to expressly mention the types of products. For limited liability companies (SRL), the articles of association must include a clause regarding compliance with Law 359/2004 – the affidavit on the fulfillment of operating conditions. No separate operating permit is issued by ONRC; authorization is carried out by registering the company and submitting the standard declaration to the trade register.

In case of combined production and distribution, it is recommended to complete the associated CAEN codes (4621 – Wholesale of cereals, seeds, feed and unprocessed tobacco; 4634 – Wholesale of beverages). Not suitable for the production of tap water or municipal treatments – these fall under other codes. For export, the Taric code (2201 or 2202) must be declared and the phytosanitary certificate for mineral waters must be obtained.

Regulatory framework, specific approvals and control institutions

Main legal framework for CAEN 1107: Law 78/2000 on the production, marketing and labeling of natural mineral waters; ANSVSA Order 57/2017 on the notification of natural mineral waters; Law 150/2004 on environmental agencies. Before starting production, it is mandatory to obtain the sanitary approval from the territorial Public Health Directorate (DSP), which checks hygiene conditions and microbiological analyses.

Control institutions: Tax Authority (ANAF) – for tax control; DSVSA – for veterinary sanitary inspections (only if mineral water is used as food); Ministry of Environment – for environmental permit (if the source is exploited). At DSP, the following must be submitted: water analysis bulletins (periodic samples), product technical sheet, pre-approved labels. Packaging (PET, glass, cans) must comply with EC Regulation 1935/2004 on contact with food. For carbonated waters, standard STAS 1500-84 applies.

Legal risks: contravention sanctions for marketing without DSP approval (fine 5,000-10,000 lei) or for non-compliant labeling (fine 2,000-5,000 lei). It is forbidden to use the name 'natural mineral water' without official recognition (Order 137/2016).

Tax management, ANAF audit risk and specific accounting

Main tax obligations: value added tax (VAT) 19% – export exemption applies only with supporting documents (customs, transport). Corporate income tax 16% or micro-enterprise income tax (1% on revenue, if eligible). Mineral waters are not included in excise categories, but environmental taxes may apply (G.E.O. 195/2005 on environmental protection) for non-recoverable packaging.

Accounting: requires separate analytical accounts for raw materials (water, CO2, concentrate), packaging and finished products. Production cost includes depreciation of equipment (bottling lines, purification installations), land/source rent, electricity. Monthly physical inventory of stocks – mandatory due to fast expiry (not milk, but beverages with shelf life of 6-12 months).

ANAF audit risk: verification of VAT records on a cash basis (if special scheme applies). ANAF may analyze the average cost of water – if income is declared below market value, transfer pricing adjustments may apply. Also, the authenticity of invoices for concentrate purchases may be checked – it is necessary to keep the affidavit of the supplier regarding the origin of the goods. Advice: implement a batch management system (via ERP) for traceability; submit declaration 394 monthly with accuracy; for deferred payment distribution, use RO e-Factura electronic invoice (mandatory from 01.07.2024).