1712

Authorisation procedure and Trade Register aspects for CAEN 1712

To establish a company with the main activity of CAEN 1712 (Manufacture of paper and paperboard), registration with the Trade Register (ONRC) involves submitting standard documents: company contract, articles of association, registration application, sworn declaration in accordance with Law 359/2004 on operating authorisation. When filing, the main object of activity must be stated. No prior approvals from ONRC are required, but specific environmental and sanitary permits are mandatory for operation. The legal term for resolution is 1-3 working days for limited liability companies, or up to 5 days for other legal forms. Any subsequent modification of the secondary object of activity (if it includes other CAEN codes) is registered through a statement of amendment with the Trade Register (ONRC), with a fee of RON 122 (2024).

Regulatory framework, specific permits and control institutions

The manufacture of paper and paperboard (CAEN 1712) falls under environmental legislation and technical standards. Control institutions include: Environmental Guard, Tax Authority (ANAF), Territorial Labour Inspectorate, National Sanitary Veterinary and Food Safety Authority (if the paper comes into contact with food), and the State Inspectorate for Construction (fire safety permit). Mandatory permits include: environmental permit or environmental agreement (depending on production capacity, according to GEO 195/2005, as amended, and Law 278/2013 on industrial emissions). If the installation exceeds the minimum thresholds, an integrated environmental permit (IEP) is required. For the storage of raw materials (pulp, waste paper), regulations on waste management apply (Law 249/2015). The technical documentation must include an impact study, a waste management plan and pollution prevention measures. The operating permit from the local mayor's office is issued after verifying compliance with urban planning rules and the environmental permit.

Fiscal management, ANAF audit risk and specific accounting

From the perspective of the Fiscal Code, CAEN 1712 activities are subject to standard corporate income tax (16%) or micro-enterprise income tax (1% or 3% of revenue, depending on the number of employees and classification as a micro-enterprise). The RO e-Factura system is mandatory for all invoices issued to legal entities, and e-Transport for the transport of goods with fiscal risk (waste paper, pulp, finished products). Fiscal declarations include: the single declaration (D112) for contributions, D300 (VAT return), D301 (VAT return on collection), D390 (recapitulative declaration) and D406 (SAF-T). There is an ANAF audit risk due to operations with waste (recycled paper equivalents) and high energy consumption. Strict records of raw material inventories (pulp, waste paper) and work-in-progress are recommended, with monthly management accounting analyses. Depreciation of fixed assets (paper manufacturing machinery) is carried out according to classification groups: the normal useful life for specific machinery in the paper industry is 8-12 years according to the approved catalogue. Expenses for electricity and thermal energy are deductible with limitations (50% of total expenses for non-deductible electricity in case of non-compliance with energy efficiency conditions, according to GEO 199/2020). Registration in the fiscal vector with the correct object of activity is required for the application of VAT rates (standard 19% for finished paper, possible exemption for waste). For international transactions with raw materials (imported pulp), customs rules and clearance procedures apply at the competent customs office, with payment of customs duties (usually 0-3% depending on the origin of the goods). Analytical accounting must clearly separate paper production by type (corrugated, packaging, writing, etc.) for correct calculation of production costs. Depreciation and revaluation documentation for machinery must be kept for at least 10 years, according to fiscal prescription terms (5 years plus the inspection period).