1395

Authorization procedure and Trade Register aspects for CAEN 1395

When registering with the Trade Register a company whose main activity is CAEN 1395 (Manufacture of non-woven textiles and articles made from these, except for apparel), the standard documentation must be submitted according to Law No. 265/2022 and Law No. 359/2004. The affidavit states that the registered office is suitable for industrial production. No prior environmental or sanitary approval is required at incorporation, but later, depending on production capacity, environmental authorization procedures may apply (environmental agreement or integrated environmental permit). The economic operator must submit to the Trade Register (ONRC) the registration application, the constitutive act, proof of registered office, the affidavit and, if applicable, documents regarding the paid-in share capital. The exact CAEN 1395 code is mentioned in the main object of activity. For trade operations with textile raw materials or finished products, registration as a VAT payer is also required if turnover exceeds the threshold of 300,000 lei.

Regulatory framework, specific approvals and control institutions

The manufacture of non-woven textiles falls under REACH Regulation (EC No. 1907/2006) on chemical substances and EU Regulation No. 1007/2011 on textile fiber names. At national level, Law No. 18/2022 on waste management applies, as well as the reporting obligation to ANPM (National Agency for Environmental Protection). The control institutions are: National Environmental Guard (checking compliance with emission and waste management norms), Tax Authority (ANAF) (tax audits regarding VAT, corporate income tax and recapitulative statements), ITM (labor inspectorate for compliance with occupational safety and health rules, especially noise and dust) and ANPC (for finished products placed on the market, labeling). For export outside the EU, a EUR.1 certificate of origin and CE declarations of conformity are required. It is mandatory to obtain an operating permit from ISU (fire prevention) and a sanitary approval from the Public Health Directorate, because the process involves textile dust emissions.

Tax management, ANAF audit risk and specific accounting

From an accounting perspective, companies under CAEN 1395 apply OMFP No. 1802/2014 and follow International Financial Reporting Standards if they are public interest entities. Analytical accounting must separate costs by phases: purchases of raw materials (fibers, films, adhesives), utility consumption, direct labor and indirect production costs. For VAT settlement, the VAT on collection basis applies if annual turnover does not exceed 4,500,000 lei. Among audit risks, ANAF checks: the correctness of recording intra-Community acquisitions (if materials are imported from the EU), the application of the reduced VAT rate (if applicable) and compliance with deadlines for submitting declarations 300, 390, 394 and the single declaration (if there are associates with dividend income). For the RO e-Factura system, all invoices issued between taxable persons established in Romania must be transmitted to the national system, under penalty of fines. Tax obligations include: corporate income tax (16%) or micro-enterprise income tax (1% or 3% depending on the number of employees), and for paid dividends, a withholding tax of 8%. Note that for production equipment, accelerated depreciation may be applied according to the Fiscal Code. In the event of an audit, ANAF inspectors will analyze the classification of products in the Combined Nomenclature of the Customs Tariff (code 5603 for non-woven textiles) and the correlation with the VAT base for imports. Operators must keep primary documents (invoices, receipt notes, warehouse cards) for at least 10 years. In addition, it is recommended to periodically check the VAT threshold and the obligation to register for VAT purposes if intra-Community acquisitions exceed 10,000 euros per year.