1711

Authorization procedure and Trade Register aspects for CAEN 1711

For the registration at the Trade Register (ONRC) of a company with CAEN code 1711 (Manufacture of pulp), the standard procedure provided by Law 359/2004 applies. The founders submit the application form, the constitutive documents and the affidavit regarding the fulfillment of legal conditions. A valid loan for use or lease contract is required for the registered office. Given the specific nature of the activity, the file must necessarily include proof of environmental permits (environmental agreement or integrated environmental permit) and the DSP permit regarding compliance with hygiene and health standards. ONRC checks the name, registered office and object of activity. It is recommended to clearly include the main object as 'manufacture of pulp' and related secondary objects (e.g., manufacture of paper, recycling). After registration, the company has 30 days to request fiscal registration with the Tax Authority (ANAF) and to declare the fiscal vector. Non-compliance leads to contraventional sanctions.

Regulatory framework, specific permits and control institutions

CAEN 1711 involves technological processes with major environmental impact. The provisions of Law 278/2013 on industrial emissions and Law 104/2011 on air quality are applicable. Installations for the manufacture of pulp (by chemical, mechanical or thermomechanical processes) require an integrated environmental permit issued by the Environmental Protection Agency (APM) after assessing the impact on soil, air and water. Also, a water management permit (ABA) is required for abstractions and discharges. Sanitary control is exercised by the DSP; working conditions, hazardous waste management and compliance with fire safety rules (ISU) are checked. The ITM permit is mandatory for the operation of heavy machinery and prevention of major accidents (Seveso III – Law 59/2014, if the warehouses of dangerous substances exceed the thresholds). Failure to obtain permits leads to suspension of activity and fines between 25,000 and 100,000 lei.

Fiscal management, ANAF audit risk and specific accounting

Companies carrying out the activity of manufacturing pulp are required to keep double-entry accounting, according to accounting regulations compliant with European directives. Taxation is according to the Fiscal Code: standard VAT (19%) for the sale of pulp; reverse charge may apply if delivered to taxable persons under certain conditions (e.g., recyclable waste). Excise duties do not apply to pulp, but apply to electricity and gas used in production (harmonized excise duties). Corporate income tax is calculated at 16%, and if the company is a micro-enterprise (turnover under 1,000,000 euros and at least 1 employee), the tax may be 1% or 3% on income. Major ANAF audit risk: frequent VAT settlement (monthly, given the volumes traded) and correctness of input deductions (raw materials, chemicals). The use of the RO e-Factura system has been mandatory since 2024 for all invoices issued to the state, but recommended for B2B to avoid omissions. Accounting must reflect production costs (raw materials – wood, alkaline substances, water, energy), pulp inventories (valuation at standard cost or FIFO) and provisions for decommissioning of installations. Monthly obligations include declaration 300, 394 (if exceeding the threshold of 100,000 euros), declaration 112 for employees and the single declaration (if the associate has income from dividends). Failure to declare environmental operations may trigger unannounced inspections and reclassification of VAT deductions.