1612

Authorization procedure and Trade Register aspects for CAEN 1612

Setting up a company that will carry out wood processing and finishing activities (CAEN 1612) requires going through the standard formalities at the National Trade Register Office (ONRC). The articles of incorporation must include the main object of activity coded accordingly. Given the specifics of production, we recommend including the following related secondary codes: 1611 (Sawing and planing of wood), 1623 (Manufacture of other joinery and carpentry elements for construction) and 3109 (Manufacture of furniture n.e.c.). The sworn declaration according to Law 359/2004 regarding the authorization of operation is submitted to the ONRC, without the need for prior operating approvals at the registry level.

For micro-enterprises, as of January 1, 2024, the thresholds require a net turnover of up to 500,000 euros and a maximum of 9 employees. If the company does not meet the conditions, the tax classification is as a legal entity paying profit tax (16%). At registration, proof of registered office (loan agreement, lease or land register extract) is submitted and, if the space is considered for production purposes, a fire safety authorization issued by the Inspectorate for Emergency Situations (ISU) is required – a document not presented to the ONRC, but subsequently requested by control authorities.

Regulatory framework, specific approvals and control institutions

Wood processing and finishing activities fall under the scope of Emergency Ordinance no. 195/2005 on environmental protection, as subsequently amended. For small capacities (production under 10 cubic meters/day), the company may be exempt from obtaining an environmental permit, with a notification to the Local Environmental Protection Agency (APM) being sufficient under the initial evaluation procedure. If chemicals are used for finishing (paints, varnishes, solvents), an environmental permit for emissions of volatile organic compounds (VOCs) is required, according to Law 104/2011 on ambient air quality.

The storage of wood waste (sawdust, shavings) requires compliance with environmental protection rules, and a contract with an authorized sanitation operator is mandatory. Also, the company must hold a sanitary operating permit issued by the Public Health Directorate (DSP), based on compliance with occupational hygiene and health standards. Control is carried out by the Environmental Guard, the Territorial Labor Inspectorate (ITM) and the DSP.

Tax management, ANAF audit risk and specific accounting

From a tax perspective, the main obligations include: declaring and paying VAT (if turnover exceeds the threshold of 300,000 RON) or applying the exemption regime with the right of deduction. For micro-enterprises, income tax is 1% for revenues up to 500,000 euros or 3% for revenues exceeding this amount. It is essential to correctly register in the tax vector with the CAEN code 1612 at the competent tax authority (ANAF).

Specific accounting involves separate recording of raw material costs (logs, lumber), direct labor and indirect production costs (energy, equipment maintenance). The company must implement warehouse records for wood stocks and finished products, plus strict waste tracking. The use of the RO e-Factura system is mandatory for all invoices issued to legal entities, regardless of value, as of January 1, 2024. Non-compliance may result in fines.

The ANAF audit risk focuses on: undervaluation of stocks, lack of wood origin documents (SUMAL 2.0 – the information system for tracking wood materials) and failure to declare finishing operations. It is recommended to keep all supporting documents for 5 years, including contracts with raw material suppliers. Also, for employees with individual employment contracts, the normal taxation regime applies (10% income tax and social contributions), while for civil contracts (service provision), withholding at source applies according to the provisions of the Fiscal Code. The single declaration is filed annually, by May 25, for income from independent activities and investments. The disposal of waste is done through reporting to the guarantee-return system, if applicable, or through energy recovery contracts.