1396

Authorization procedure and Trade Register aspects for NACE 1396

The establishment of a company that will carry out the activity of manufacturing technical and industrial articles from textiles (NACE 1396) requires following the standard registration steps at the Trade Register (ONRC), with specific mentions regarding the object of activity and supporting documentation. When submitting the registration application, the associates or administrators must complete the affidavit according to Law 359/2004, by which they attest to the fulfillment of the legal operating conditions, including those related to the registered office and minimum technical equipment. It is essential that the constitutive act mentions the NACE code 1396 as the main or secondary object of activity, depending on the share of estimated revenues. In the absence of special regulations for this class, no prior approvals from other authorities are required at the authorization stage. However, for opening the place of work, prior verification of the right to use the space is necessary, through a lease contract or property deed. After registration, the Trade Register (ONRC) officially communicates the company data to the Tax Authority (ANAF) and the Trade Register. The legal processing term for the application is 1-5 working days, and the fees are approximately 190-250 lei, depending on the method of establishment (online at ghiseul.ro or in person).

Regulatory framework, specific approvals and control institutions

The activities of manufacturing technical and industrial articles from textiles are not subject to special operating authorizations, but are subject to general regulations on occupational hygiene, fire safety and environmental protection. Depending on the specifics of the production process (use of chemicals, finishes, degreasing), it may be necessary to obtain an environmental approval from the National Agency for Environmental Protection, based on Law 292/2018 on the assessment of the impact of certain public and private projects on the environment. Also, the undertaking must register as a waste producer if it generates textile waste or packaging. State control is exercised by the Labor Inspectorate (ITM) and the Public Health Directorate (DSP) for working conditions. From a product quality perspective, technical textile articles may fall under harmonized European technical standards (e.g., EN 13779 for air filters), but certification is only mandatory if the products are marketed as personal protective equipment (PPE) or medical devices. We recommend checking the classification of finished products in relation to Regulation (EU) 2016/425 on personal protective equipment, which may require conformity assessment by a notified body.

Tax management, ANAF audit risk and specific accounting

From a fiscal perspective, the taxpayer earning income from NACE 1396 is subject to corporate income tax or micro-enterprise income tax, if the conditions regarding the threshold and share capital are met. The timing of VAT registration is governed by Article 316 of the Fiscal Code: the obligation arises when the turnover exceeds the threshold of 300,000 lei during a calendar year or at the option. It is important to know that manufactured products are generally subject to the standard VAT rate (19%), except when they fall under exemptions or reduced rates. Proper management of raw material and finished product inventories is a sensitive point in accounting: using the standard cost method or perpetual inventory is recommended to avoid tax adjustments. Technical textile articles can be considered consumable items or fixed assets, depending on their useful life, which influences the accounting treatment of depreciation. The Tax Authority (ANAF) may initiate a comprehensive audit if discrepancies are found between declared and physical inventories or if intra-Community supplies are not declared. We recommend keeping transport documents (goods accompanying notes) for each shipment and complying with the submission deadlines in the RO e-Factura system. Also, if articles are made to order (custom-made), the tax base must be adjusted at the time of invoicing. Last but not least, monthly returns (D300) and annual returns (D101 or D205) must be filed accurately, and the fiscal vector must be updated with the Trade Register (ONRC) within 15 days of any change in the object of activity.