1421

Authorization procedure and Trade Register aspects for CAEN 1421

For registration with the Trade Register (ONRC) of the main activity CAEN 1421 (Manufacture of wearing apparel), standard documents are required: the registration application, the constitutive act (for limited liability companies) or affidavit (for sole proprietorship/family enterprise), proof of registered office and production space. When submitting the file, the fiscal vector is declared to the Tax Authority (ANAF), and for sole proprietorships, the single declaration is completed. No prior approvals from ONRC are mandatory, but the manufacture of wearing apparel may require notification to the Public Health Directorate (DSP) for compliance of spaces with hygiene standards. The exact coding of the main object of activity must be reflected in the certificate of registration; coding errors attract sanctions and blocking of operations.

Regulatory framework, specific approvals, and control institutions

The main institutions are ANAF (tax control) and the Labor Inspectorate (ITM). For CAEN 1421, there are no specific environmental approvals (the Integrated Environmental Authorization does not apply), except in cases where the process involves dyeing or finishing with chemical substances – then Law 278/2013 on industrial emissions applies. According to Law 359/2004, upon registration, an affidavit is submitted regarding the fulfillment of operating conditions, including for occupational safety and fire prevention (ISU approval, if the space exceeds 200 sqm or there is a specific risk). Hiring personnel requires employment contracts in REVISAL and compliance with safety standards (protective equipment, ventilation).

Fiscal management, ANAF audit risk, and specific accounting

As a taxpayer, you must apply the provisions of the Fiscal Code for corporate/income tax (standard or micro). VAT applies to supplies – the RO e-Factura system is mandatory for B2B relations. The tax base is calculated after deducting direct expenses: raw materials (fabrics), labor, depreciation of sewing machines and production equipment. ANAF has an increased audit risk for the textile industry, especially regarding VAT returns, intra-Community acquisitions (provenance of fabrics), and under-declaration of income. Accounting must clearly highlight costs per order/batch, and inventories are periodically inventoried. For micro-enterprises (fewer than 10 employees), a 1% tax on turnover applies, provided that revenues do not exceed EUR 500,000. It is recommended to keep timesheets and production sheets to justify personnel costs. Non-compliance with ITM or ANAF rules leads to fines of up to RON 10,000.