1394

Authorisation procedure and Trade Register aspects for NACE 1394

When registering a company whose main object of activity is NACE 1394 - Manufacture of cordage, rope, twine and netting, the single declaration to the Trade Register (ONRC) is completed with the respective code. Authorisation requirements include submitting the registered office documents (lease contract or title deed), the constitutive acts and the affidavit according to Law 359/2004 regarding the fulfilment of operating conditions. No prior approvals are mandatory for simple registration, but obtaining an environmental permit before starting production is recommended. If the company will also carry out commercial activities, the points of operation where finished products are stored or sold must also be registered with the Trade Register.

Regulatory framework, specific permits and control institutions

The main normative act governing this activity is Emergency Government Ordinance (OUG) 195/2005 on environmental protection, as manufacturing processes can generate waste, emissions or noise. Depending on production capacity and the raw materials used (natural or synthetic fibres, chemicals for treatments), the company may need an environmental permit from the Environmental Protection Agency (APM) or, if it falls within the annexes of the law, only a notification. The control institutions are the Environmental Guard (for compliance with environmental regulations), the Labour Inspectorate (for occupational safety, especially for high-risk machinery) and the Public Health Authority (for hygiene conditions in production). If the products are intended for use in construction (e.g., safety nets), EU Regulation 305/2011 on construction products applies, requiring CE marking and performance assessment by a notified body.

Tax management, ANAF audit risk and specific accounting

From a fiscal perspective, NACE 1394 falls under the industrial sector, applying the accounting standards of MFPO 1802/2014. The tax base is determined by recording revenue from the sale of finished products at the selling price, while the production cost includes raw materials (cordage, rope, etc.), direct labour and indirect expenses. The company must be attentive to VAT: the standard rate of 19% applies, with the possibility of deducting VAT for the purchase of specific machinery (braiding machines, twisting machines, dryers, etc.). ANAF audit risk is medium, given that production flows and physical inventories are involved. Controls focus on the correctness of inventories (mandatory annual stocktaking), the recording of production operations in the RO e-Factura system (if invoices are issued to other legal entities), and compliance with the fiscal vector (monthly returns 300, 390, D406 SAF-T). It is recommended to implement a standard cost calculation system and a warehouse sheet for each type of product to avoid VAT adjustments during inventory.