1391

Authorization Procedure and Trade Register Aspects for CAEN 1391

When establishing a company that will carry out the activity of 'Manufacture of knitted and crocheted fabrics' (CAEN code 1391), the applicant must submit to the National Trade Register Office (ONRC) the registration application, accompanied by the constitutive documents. A sworn declaration according to Law no. 359/2004 shall be completed, by which the administrator confirms compliance with the legal conditions for authorizing the operation. Activities in the textile industry are not among strictly regulated ones, but obtaining environmental and health approvals (as applicable) is mandatory. At ONRC, the registered office and the work points where production actually takes place are registered. We recommend verifying the compatibility of CAEN code 1391 with the declared main activity object. After registration, the Tax Authority (ANAF) is requested to assign the VAT registration code and the fiscal vector. The company shall declare in form 010 the main and secondary CAEN codes, with an explicit description of the activities.

Regulatory Framework, Specific Approvals and Control Institutions

For carrying out the activity under CAEN 1391, the entity must comply with environmental protection rules established by the National Agency for Environmental Protection. Knitting processes can generate textile waste and dust or noise emissions, making it necessary to obtain an environmental permit. The Labour Inspectorate and the Public Health Directorate monitor compliance with occupational safety and health rules. If chemical substances are used for finishing, REACH regulations apply. Additionally, manufacturers must register in the Register of Operators in the Textile Industry (ROIT) if they intend to export or participate in tenders. The National Authority for Consumer Protection (ANPC) verifies the labelling of finished products according to Law no. 409/2002 on labelling of textile products. Compliance enthusiasts must adhere to applicable technical standards (SR EN ISO).

Fiscal Management, ANAF Audit Risk and Specific Accounting

From a fiscal perspective, the manufacture of knitted fabrics falls under CAEN code 1391 and is subject to corporate income tax of 16% (or micro-enterprise income tax if legal conditions are met). In accounting, raw materials (yarns, fibres) are recorded in inventory accounts (301, 302), and finished products (textile fabrics) are valued at production cost according to OMFP no. 1802/2014. Direct labour costs, depreciation of knitting machines, and indirect production costs are allocated based on technical norms. The company must issue electronic invoices through the RO e-Factura system for B2B transactions, and for sales to final consumers, fiscal receipts. VAT returns (300) are filed monthly or quarterly, depending on the threshold. ANAF may trigger a tax audit if discrepancies are found between declared and actual stocks, especially in the context of chemical substances used. There is a major risk of income reclassification if the activity also includes finishing services for third parties, which may require separate CAEN codes. The company should prepare a cost-benefit analysis regarding accelerated depreciation of knitting machines, according to the Fiscal Code, for fiscal optimization. It is also recommended to monitor monthly declarations (D112) for social and health insurance. In the case of exports of textile fabrics, 0% VAT applies provided customs documents are presented. Initial investments in machinery may benefit from tax credit according to GEO no. 33/2022. For companies with more than 10 employees, implementing a SAF-T reporting system is mandatory, which includes detailed data on stocks and material movements.