1628

Authorization procedure and Trade Register aspects for CAEN 1628

For setting up a commercial company with the activity object of CAEN code 1628, i.e., manufacture of other products of wood, articles of cork, straw and plaiting materials, the first step is checking the name availability at the Trade Register (ONRC) and drafting the constitutive act (company contract or single constitutive act). For SRLs with a single associate or associates, the standardized form offered by ONRC or a customized act may be chosen.

When submitting the file to the Trade Register, it is mandatory to specify the exact CAEN code 1628 as the main or secondary object. The consultant's recommendation is to list it as main object only if it represents over 50% of the estimated turnover. CAEN code 1628 does not require prior operating permits but is subject to subsequent control by the Territorial Labor Inspectorate (ITM) and the Public Health Directorate (DSP), depending on the specifics of the production process (machinery, pollutants, waste).

After registration with the Trade Register, the company receives the VAT number (CUI). Within 30 days of registration, the tax registration declaration (Form 010) must be submitted to the Tax Authority (ANAF) for registration in the fiscal vector and obtaining the tax registration certificate. For the registered office, proof of the right of use (sale-purchase contract, lease) is required. If the activity takes place in spaces designated for production, a prior check of the local urban planning regulations and obtaining a zoning certificate from the town hall are recommended.

In addition to the basic operating authorization, companies producing from wood must also register in the SUMAL system (Timber Tracking System) according to forestry legislation. This involves submitting a declaration to the Forestry Directorate and implementing a traceability system for timber mass.

Regulatory framework, specific approvals and control institutions

Activities in the field of CAEN 1628 are regulated by Law 359/2004 on simplifying authorization, as well as by sectoral norms on health and safety at work. The main control institutions include the National Environmental Guard (if waste or emissions are generated), ITM (for compliance with labor protection rules and employment contracts), and DSP (for hygiene conditions in the production process).

For the manufacture of articles of cork, straw and plaiting materials, specific environmental permits may be required, especially if chemicals for treating materials (e.g., fire retardants, fungicides) are used. Companies must register as waste generators with the Environmental Protection Agency. Additionally, hiring staff involves drafting internal regulations, job descriptions, and professional risk assessments according to Law 319/2006.

Another key aspect regulated by ONRC is the modification of the object of activity. If the company later wishes to add new related CAEN codes (e.g., 1610 for sawmilling or 1623 for manufacture of wooden buildings), it must go through the procedure of amending the constitutive documents and registration with ONRC, with the applicable fee.

Tax management, ANAF audit risk and specific accounting

From a fiscal perspective, companies with CAEN code 1628 may be taxed either on the income of micro-enterprises (if they meet the legal conditions: at most 3 employees, turnover under EUR 500,000, income from consultancy/management under 20%) or on profit. Consulting an accountant is recommended for choosing the optimal tax regime, considering thresholds and exceptions regarding production income.

Tax obligations include VAT at collection (if the threshold of RON 300,000 is not exceeded) or monthly/quarterly VAT, payroll tax for employees (declaration D112), social contributions, and the single declaration for administrators. For raw materials (wood, cork, straw), the standard VAT rate applies, and for imports, an import authorization under the specific tariff code may be requested.

The risk of ANAF audit is medium to high, especially regarding the traceability of raw material stocks and the correct recording of operations in the RO e-Factura and e-Transport systems. ANAF frequently checks the consistency between the quantities declared in SUMAL and the actual consumption in production. Maintaining detailed management accounting, with warehouse records for each type of material, and using integrated production software are recommended. Non-compliance with forestry or tax rules results in substantial fines (up to RON 100,000) and possible confiscation of goods.

From a specific accounting perspective, proper classification of finished products in account 345 and recording of tangible fixed assets (machinery, production lines) in account 213 are recommended. Depreciation is calculated according to the useful life provided by the Catalog for the classification and normal operating lives of fixed assets. Raw material and consumable expenses are recognized based on FIFO or weighted average cost method, with the obligation to adjust stocks during annual inventory.