1399

Authorization procedure and Trade Register aspects for CAEN 1399

For registration with the Trade Register (ONRC) of the activity of manufacturing other textile articles n.e.c. (CAEN 1399), the sole declaration regarding the registration of entries in the trade register is completed. The documentation includes the updated articles of association (for companies) or the registration application (for PFA/II). No prior approvals from ONRC are required, but the main and secondary activity objects must be specified in accordance with NACE Rev. 2. With the Tax Authority (ANAF), the fiscal registration declaration (Form 070) is submitted to obtain the unique registration code. Subsequently, the fiscal vector is completed through Form 010, indicating profit tax/micro-enterprise tax, VAT (if the threshold of RON 300,000 is exceeded), dividend tax, etc. The affidavit under Law 359/2004 attests to compliance with operating conditions; no additional documents are required from ONRC, but verification of eligible CAEN codes is recommended.

Regulatory framework, specific approvals and control institutions

The main regulations are the Fiscal Code (Law 227/2015) and the Accounting Law (82/1991). No mandatory prior approvals exist for CAEN 1399, but if the process involves chemicals or hazardous waste, Law 211/2011 on waste regime and Government Decision 856/2002 (waste record) apply. Obtaining an environmental permit (agreement or authorization) under Government Emergency Ordinance 195/2005 is necessary for installations with significant impact. Control is exercised by ANAF for taxation, by the Environmental Guard for environmental compliance (if textile waste is generated), by the Labour Inspectorate (ITM) for occupational safety (Law 319/2006), and by the Public Health Directorate (DSP) for hygienic-sanitary conditions (Law 95/2006). In the case of using industrial machinery, Government Decision 1146/2006 on machinery safety applies. For intra-EU exports, VIES declarations and Intrastat statistics are completed. It is recommended to keep records of raw material purchases, production sheets, and sales contracts.

Tax management, ANAF audit risk and specific accounting

Accounting is kept in accordance with accounting regulations (OMFP 1802/2014 for companies, OMFP 170/2015 for micro-entities). Costs for raw materials (yarns, fabrics) are recorded in account 301, work in progress in account 331, finished products in account 345, and sales through account 701. Depreciation of machinery is calculated on a straight-line basis over the useful life (typically 8-15 years). The audit risk from ANAF is high in case of incorrect classification of income (reverse charge for exported products), failure to record VAT at collection (if the VAT at collection system applies under Articles 282-285 of the Fiscal Code), and non-compliance with micro-enterprise thresholds (turnover threshold of EUR 500,000). Transfer pricing audits (for transactions with related parties) may target profit margins comparable to market studies. Reporting obligations include declaration 100 (profit/micro-enterprise tax, VAT), declaration 112 (social contributions), declaration 406 (e-Factura for B2B transactions if the threshold of RON 450,000 per quarter is reached), and for large economic operators, SAF-T reporting (D406) applies. For inventory management, annual inventory is mandatory under OMFP 2861/2009. Any subcontracting activity involves verifying the employer status in the Employee Register (REVISAL) and written contracts. Non-conformities during ITM inspections (occupational safety standards, staff training) may result in fines from RON 5,000 to 20,000.