1511

Authorization procedure and Trade Register aspects for CAEN 1511

Establishing a company with the main activity object CAEN 1511 requires strict compliance with the procedures of the Trade Register (ONRC). When submitting the registration application, a declaration on own responsibility according to Law 359/2004 is completed, by which the manager attests to the fulfillment of the legal operating conditions. For this CAEN code, prior environmental authorization from the Environmental Protection Agency is mandatory, because the activity involves the use of chemical substances and the generation of hazardous waste. Also, a fire safety authorization (ISU) is necessary if the production space exceeds certain areas. At the Trade Register, the relevant secondary activity object is filled in (for example, wholesale trade of processed leather). Any subsequent modification of the registered office or activity objects must be communicated within 15 days from the occurrence of the event, under penalty of a fine.

Regulatory framework, specific approvals and control institutions

Economic operators in the field of tanning and dressing of hides are subject to the regulations of Government Decision 856/2002 on waste management records and Government Emergency Ordinance 195/2005 on environmental protection. Possession of an environmental permit is mandatory before starting the activity, and annual reports to the National Environmental Protection Agency are compulsory. Periodic inspections are carried out by the National Environmental Guard, which checks the storage and disposal of resulting waste (chromium, solvents, sludge). From the point of view of occupational health and safety, the employer must draw up a prevention and protection plan, approved by the territorial labor inspectorate (ITM). Finished products falling under the REACH Regulation must be accompanied by safety data sheets (SDS). For the export of processed furs, a CITES certificate is required if the species are protected. Non-compliance with these requirements leads to drastic contraventional sanctions and even suspension of activity.

Tax management, ANAF audit risk and specific accounting

For CAEN 1511, fiscal obligations include corporate income tax of 16% (or micro-enterprise income tax if the conditions regarding turnover threshold and number of employees are met). VAT applies at the standard rate of 19% for deliveries of processed leather, with the possibility of applying a reduced rate for certain finished textile products? It is not the case. On the import of raw materials (raw hides, chemical substances), customs duties and VAT are paid at customs. ANAF (Tax Authority) pays special attention to this code due to the risk of undervaluation of raw materials and non-declaration of recoverable waste. The reporting obligation through the RO e-Factura system applies to all invoices issued in B2B relationships, and e-Transport is mandatory for transports of goods with high fiscal risk, including hides and chemical substances. In accounting, expenses with raw materials, auxiliary substances and energy are recorded based on supporting documents. Periodic evaluation of inventories is mandatory at acquisition cost or net realizable value, according to Order 1802/2014. Depreciation of specific equipment (drums, finishing machines) is carried out over the useful life, usually between 4 and 10 years. For fiscal optimization, provisions for asset dismantling and site restoration can be set up, within the limits provided by the Fiscal Code. We recommend appointing a tax consultant specialized in the manufacturing industry to avoid audit risks and to comply with reporting requirements to ANAF and the Trade Register.