1623

Authorization procedure and Trade Register aspects for NACE 1623

Incorporating a company with the main activity NACE 1623 requires completing the standard formalities with the Trade Register (ONRC). When submitting the file, a sworn declaration is completed in accordance with Law 359/2004 regarding the fulfillment of operating conditions. No prior permits issued by the relevant ministries are required for incorporation, but it is recommended to check for urban planning restrictions at the registered office. The Trade Register (ONRC) will require proof of name availability, the articles of incorporation, identity documents of the shareholders/managers, and proof of the registered office (purchase contract, loan agreement or lease with mention of professional headquarters destination). The legal processing term is 1-3 working days, but for online submissions it can be reduced to 24 hours. After registration, the registration certificate and extract from the Trade Register are obtained.

Regulatory framework, specific permits and control institutions

The activity of manufacturing carpentry and joinery elements (doors, windows, shutters, roof trusses) is regulated by technical norms on fire safety, especially for products intended for constructions with fire resistance requirements. The provisions of Law no. 10/1995 on quality in construction, as subsequently amended, and of Law no. 346/2020 on product safety apply. For products with a load-bearing role or that form part of the building envelope, the manufacturer must draw up CE declarations of conformity or request technical assessment from a notified body (e.g., INCERC). The relevant control institutions are: the State Inspectorate for Construction (ISC), the National Environmental Guard (for wood waste) and the National Authority for Consumer Protection. In the case of chemically treated materials, the REACH Regulation and the rules on dangerous substances apply. For activities involving mechanical wood processing, it is mandatory to obtain an environmental permit from the Environmental Protection Agency (APM), depending on the production volume and generated emissions.

Tax management, ANAF audit risk and specific accounting

From a fiscal perspective, activities with NACE code 1623 are classified in the production sector, with implications regarding the standard corporate income tax of 16% or the micro-enterprise income tax (if the conditions regarding turnover and number of employees are met). VAT applies at the standard rate of 19% for supplies, but a reduced rate of 5% may be requested for the supply of wood materials intended for new buildings, according to the Fiscal Code, art. 291, para. (3), letter k). It is essential to correctly register on the fiscal vector with the Tax Authority (ANAF), mentioning the main NACE code. Accounting must distinctly highlight production costs (raw materials, labor, depreciation of machinery) and finished product inventories. The risk of an ANAF audit is high due to possible imbalances between purchases of raw materials (wood, veneer, accessories) and declared sales. It is recommended to draw up warehouse records and periodically evaluate inventories at standard cost or weighted average cost. Also, for VAT settlements, the RO e-Factura system applies for B2B operations, and failure to issue electronic invoices within 5 days of delivery attracts sanctions. Personnel expenses must be declared monthly in D112, and for employees in production, income tax exemptions apply if they fall within the construction sector (conditions under art. 60, point 5 of the Fiscal Code). For investments in specific machinery (wood processing machines, dryers, presses), tax facilities in the form of accelerated depreciation may be granted. Last but not least, compliance with environmental norms regarding treated wood waste (paints, varnishes) requires registration as a waste generator and payment of environmental taxes. The basic recommendation: hire an accounting service specialized in production and periodically update fiscal-accounting procedures in line with legislative changes.