1622

Authorization procedure and Trade Register aspects for CAEN 1622

Setting up a company that will carry out the activity of manufacturing assembled parquet panels (CAEN 1622) involves going through the standard registration procedure with the Trade Register (ONRC), with specific mentions regarding the object of activity. When submitting the registration application, the sworn statement according to Law 359/2004 will be completed, by which the administrator confirms compliance with the legal operating conditions. Although CAEN 1622 does not require prior approvals to obtain the registration certificate, we recommend consulting the Nomenclature of Activities in the National Economy to check whether related activities are also intended (for example, wood processing CAEN 1610). For the registered office, the deed of use (lease agreement, loan for use or ownership deed) must be submitted and, if the office is in a residential space, the operating permit issued by the local mayor's office. When completing the main object of activity, the exact name and code CAEN 1622 must be stated, and for secondary objects, activities such as 'Wholesale of wood material' (CAEN 4613) or 'Manufacture of other joinery and carpentry elements' (CAEN 1623) may be included.

Regulatory framework, specific permits and control institutions

Activities for manufacturing assembled parquet panels fall under several normative acts, of which essential ones are Law 171/2010 on establishing and sanctioning forestry contraventions, Government Emergency Ordinance 96/1998 on regulating the wood products market, and sanitary-veterinary legislation (wood parquet used in high-humidity rooms must comply with hygiene standards). Relevant control institutions include the National Forestry Guard (for the origin of wood mass), the National Authority for Consumer Protection (according to EN 14322:2017 standards for laminated parquet), and the State Construction Inspectorate (if the parquet is used in public buildings). Environmental permits must be obtained, in particular the environmental permit from the Environmental Protection Agency, for emissions of wood dust, pollutants and toxic waste (varnishes, paints). Also, for marketing on the European Union market, it is mandatory to draw up a Declaration of Performance (DoP) according to Regulation (EU) No. 305/2011, accompanied by CE marking. In the case of using resins or adhesives with formaldehyde, the limits imposed by Regulation (EC) No. 1272/2008 (CLP) and the REACH Regulation apply.

Tax management, ANAF audit risk and specific accounting

From a tax perspective, the activity of manufacturing assembled parquet is classified as industrial production, applying the normal VAT regime (standard rate 19%) for deliveries of finished products. Taxpayers must register as VAT payers if the turnover exceeds the threshold of 300,000 lei in 12 months (or they may opt for voluntary registration). When purchasing raw materials (wood, varnishes, packaging), it is recommended to check the correct CAEN codes for suppliers and obtain the documents for the origin of the wood (Accompanying notice for wood mass). For calculating profit tax (16% or 1% for microenterprises if it does not exceed 500,000 euro and does not carry out banking/insurance activities), deductions may be made for depreciation of production equipment (cutting, pressing, finishing machines), plus costs for rent, utilities and salaries. A major tax risk exists regarding the correct declaration to the Tax Authority (ANAF) of income from sales (invoices issued according to the RO e-Factura system) and compliance with deadlines for paying budget obligations. We recommend implementing an accounting system that separates costs by cost centers (raw material, labor, manufacturing overheads) for an efficient analysis of the gross margin. Also, at the end of the financial year, form 101 (profit tax return) must be prepared and the informative declarations D406 (SAF-T) regarding the stocks of raw materials and finished products must be submitted. In the case of parquet export, a 0% VAT rate applies to exports, provided that customs documents are drawn up and actual transport is proven.