1410

Authorization procedure and Trade Register aspects for CAEN 1410

The authorization to carry out the activity of manufacturing knitted or crocheted apparel (CAEN 1410) involves going through the standard registration stages with the Trade Register (ONRC). For authorized natural persons (PFA), individual enterprises (II) or legal entities (SRL), it is mandatory to submit the registration application to the Trade Register, accompanied by the constitutive documents and the affidavit in accordance with Law 359/2004 on fulfilling the operating conditions. No prior approvals from other institutions are required for this CAEN class, except where the activity involves the use of special machinery (e.g., industrial knitting machines) requiring compliance with fire safety and occupational health rules. Upon registration, the main activity object must be specified exactly as 1410, and secondary coding may include 1391 (manufacture of knitted fabrics) or 1413 (manufacture of other wearing apparel), if applicable. The duration of the procedure at the ONRC is 1-5 working days, and costs include the registration and publication fee in the Official Gazette.

Regulatory framework, specific approvals and control institutions

Activities under CAEN 1410 are regulated by Law no. 359/2004 and Law no. 26/1990 on the Trade Register. There are no mandatory environmental approvals, unless the manufacturing process involves dyeing or finishing of textiles, in which case Law no. 278/2013 on industrial emissions applies. Relevant control institutions are: State Inspectorate for the Control of Boilers, Pressure Vessels and Lifting Installations (ISCIR) – if pressure equipment is used; and the National Authority for Consumer Protection, for product conformity with quality standards. It is also recommended to obtain a fire safety permit from the Inspectorate for Emergency Situations, depending on the production unit capacity. For exports or intra-EU trade, textile products must comply with EU Regulation no. 1007/2011 on textile names, which requires correct labeling of fiber composition.

Fiscal management, ANAF audit risk and specific accounting

Fiscally, CAEN 1410 falls under production activities, subject to corporate income tax of 16% (or income tax for micro-enterprises, if turnover is below EUR 500,000 and conditions under Article 47 of the Fiscal Code are not exceeded). At incorporation, the fiscal vector is completed through declaration 090, and tax obligations include: declaration 300 (VAT), if the threshold of RON 300,000 is exceeded, or the option to register for VAT purposes. Specific accounting for this class involves tracking inventories of raw materials (yarn, thread, accessories), work in progress and finished products. The risk of ANAF audit is heightened when using the RO e-Factura system, especially for B2B relationships, where invoices must be transmitted electronically; non-compliance with deadlines attracts contravention fines. Also, for micro-enterprises, the single declaration (212) on estimated income and income tax must be filed by 25 May. VAT recovery on the purchase of machinery (e.g., knitting machines) is possible through settlement in the VAT return, according to Article 301 of the Fiscal Code. For employees, standard social contributions (CAS, CASS, CAM) apply, and for seasonal workers, fixed-term employment contracts may be used. Failure to declare finished products to the ONRC (through annual reports) may result in blocking operations. It is recommended to consult an accounting expert specialized in the textile industry to optimize the tax base and avoid penalties.