120
Manufacture of tobacco products
This division includes the manufacture of tobacco products, from leaf processing to the production of cigarettes, cigars or smoking tobacco. If your main activity is the industrial production of tobacco articles, this is the appropriate CAEN code.
Entrepreneur Profile
This CAEN code 120 is intended for entrepreneurs and companies (SRL, PFA) wishing to develop a business focused on manufacture of tobacco products. It is ideal for founders aiming to offer specialized services or products in this economic niche within the Romanian market.
Who should avoid:
Avoid the exclusive use of code 120 if the main activity of your company shifts towards other commercial or related branches not specified in the official description. See the excluded activities section below.
Division 120 of the National Classification of Economic Activities (CAEN) covers the manufacture of tobacco products, a niche with a long history and significant fiscal impact in Romania.
Although tobacco consumption is declining in many developed countries, the domestic market remains one of the most profitable in the region, due to constant demand and high margins. Romania is a major tobacco producer in the European Union, with a solid agricultural tradition in areas such as Oltenia and Muntenia, and local factories process both domestic and imported leaves.
Macro-economically, the tobacco industry contributes substantially to the state budget through excise duties and VAT, but faces increasingly strict regulations on advertising, packaging, and harmful substances content. Also, rising taxes on tobacco products and expanding anti-smoking restrictions have forced manufacturers to adapt by cost efficiency and product diversification. Moreover, the emergence of electronic cigarettes and heated tobacco devices has changed the competitive landscape, although their manufacture is classified separately in CAEN.
Entrepreneurs active in division 120 face challenges related to compliance with EU quality standards, managing the supply chain of raw materials, and maintaining competitiveness in a highly regulated market. Despite the difficulties, constant demand and high profitability make this niche attractive for investments, especially in the context of exports to Central and Eastern European countries.
Included Activities
- ✅ Production of cigarettes
- ✅ Production of cigars and cigarillos
- ✅ Production of smoking tobacco
- ✅ Production of pipe and hookah tobacco
- ✅ Processing of tobacco leaves (drying, fermenting, cutting)
- ✅ Manufacture of tobacco extracts and concentrates
Excluded Activities
- ❌ Retail trade of tobacco products
- ❌ Growing of tobacco
- ❌ Manufacture of tobacco substitutes (e.g., electronic cigarettes, nicotine-free products)
Similar or Related CAEN Codes:
From the same category of economic activities:
Întrebări Frecvente
What type of companies can use CAEN code 120?
Any legal entity in Romania (SRL, PFA, Individual Enterprise) performing activities related to "manufacture of tobacco products" is required to have this code authorized in its articles of incorporation or at the Trade Register.
Are special permits required for CAEN 120?
The need for permits depends on the exact nature of the operations carried out under class 120. Some activities require authorizations from DSV, Environment, or Occupational Safety, while others can be conducted solely based on the self-declaration at incorporation.