1393

Authorization procedure and Trade Register aspects for NACE 1393

For registration with the Trade Register (ONRC) of the activity of manufacturing carpets and rugs (NACE 1393), the standard incorporation or amendment file must be submitted, depending on the chosen legal form. The registration application is accompanied by the founding document, the affidavit according to Law 359/2004 regarding compliance with operating conditions, and proof of the registered office. No prior approvals from ONRC are required, but you must specify the main activity object exactly as per the classification. Also, the company must declare to the Trade Register the relevant secondary NACE code if it intends to produce carpets from textile, rubber or plastic materials. Registration fees vary depending on the share capital and the urgency of processing. For PFA/II (authorized individual/individual enterprise), the single declaration is completed at the Tax Authority (ANAF), where NACE 1393 is entered as the main or secondary activity.

Regulatory framework, specific permits and control institutions

The activity of manufacturing carpets and rugs falls under the REACH Regulation regarding chemical substances, if adhesives or chemical finishes are used. Also, European standards EN 1307 for textile carpets and EN 14041 for resilient carpets apply. For marketing on the EU market, products must bear CE marking according to the Construction Products Regulation (305/2011), if the carpets are used as construction materials (sound insulation, thermal insulation). The control authorities are ISU (fire safety approval if the production area exceeds 200 sqm or flammable materials are used), Environmental Guard (if hazardous industrial waste or emissions of volatile organic compounds are generated), and the Territorial Labor Inspectorate (working conditions, ISCIR authorization for pressure equipment). Registration as an economic operator in the RO e-Factura and RO e-Transport systems is mandatory for raw material purchases from other EU member states.

Tax management, ANAF audit risk and specific accounting

From a tax perspective, NACE 1393 involves applying the standard VAT rate (19%) on the delivery of finished products. Raw materials such as textile fibers, latex or PVC are deductible with a tax invoice. ANAF may initiate a thematic audit on production costs, especially if the gross profit margin is below the market average (30-45%). In accounting, it is recommended to analyze work-in-progress inventories at the end of each month, using accounts 301 (raw materials), 345 (finished products) and 711 (change in inventories). Depreciation of specific machinery (looms, tufting machines, dryers) is carried out over a normal useful life of 8-12 years. Profit tax is calculated according to the Fiscal Code, and micro-enterprises may apply a rate of 1% or 3% of revenue if they do not exceed the threshold of EUR 500,000. To avoid the risk of reclassification, all raw material expenses must be justified with purchase documents and production reports. Also, hired personnel must be declared in Revisal according to collective labor agreements.