1721

Authorisation procedure and Trade Register aspects for CAEN 1721

When establishing a company that will carry out the activity corresponding to CAEN code 1721 - Manufacture of corrugated paper and paperboard and of containers of paper and paperboard, it is necessary to follow the standard procedures at the Trade Register (ONRC). The sole associate or the associates submit the registration application together with the constitutive act, and the main object of activity will be explicitly mentioned according to the CAEN rev. 2 classification. No prior approvals from other institutions are required for registration, but it is necessary to submit a declaration on own responsibility under Law 359/2004 regarding the fulfilment of legal operating conditions. The administrator must declare the registered office and workplaces, and for production spaces, it is recommended to check the urban planning documentation beforehand. After registration, the registration in the Trade Register of mentions regarding secondary offices and any subsequent changes is required. For manufacturing activities, it is useful to analyse whether there are local restrictions related to pollution or classification in industrial areas.

Regulatory framework, specific approvals and control institutions

Environmental and operating permits

The manufacture of corrugated paper and paperboard involves technological processes that can generate emissions, noise and waste. Consequently, the company must obtain an environmental permit from the territorial Environmental Protection Agency (APM), according to Government Emergency Ordinance 195/2005. If the production capacity exceeds 20 tonnes per day, an integrated environmental permit is required. For production spaces, the fire safety approval from the Inspectorate for Emergency Situations (ISU) is also required. The Territorial Labour Inspectorate (ITM) will verify compliance with occupational health and safety rules. Finished products - paper and paperboard containers - must comply with applicable technical standards (e.g. SR EN 13430), but there is no mandatory certification obligation unless CE marking is desired for packaging in contact with food.

Fiscal control and specific documentation

The Tax Authority (ANAF) monitors the correctness of declaration and payment of tax obligations. During inspections, they mainly check raw material and finished product stocks, as well as their consistency with the accounting records. We recommend keeping supporting documents for purchases of paper, paperboard, adhesives and other materials. The RO e-Factura system is mandatory for all invoices issued in B2B relationships. Additionally, economic operators exceeding the threshold of EUR 10,000 must register in the SAF-T system (D406).

Tax management, ANAF audit risk and specific accounting

Applicable taxes and duties

Activity CAEN 1721 is subject to corporate income tax of 16% or micro-enterprise income tax if legal conditions are met. VAT applies at the standard rate of 19% for deliveries of packaging. Reduced VAT rates apply only to firewood, which is not the case here. The company is required to register for VAT upon establishment and subsequently submit monthly declarations (D300, D390, D406). Dividend tax is withheld at source at a rate of 8%.

Cost accounting and inventory management

Specific accounting involves distinct recording of production costs: raw materials (kraft paper, paperboard), auxiliary materials (adhesives, sealing tapes), direct salaries and indirect manufacturing expenses. The use of class 9 accounts - Management accounts is recommended. Finished product stocks (packaging) are valued at actual production cost. For resulting waste (paper scraps, recyclable paperboard), separate accounting is required, and any income from the sale of waste is recorded as income from ancillary activities.

Audit risk and tax compliance

The Tax Authority (ANAF) may select the company for a tax inspection based on risk indicators such as abnormal profit margins, large fluctuations in stocks or inconsistencies between tax declarations and actual operations. To minimise risk, rigorous documentation of production operations is recommended, including keeping technological route sheets, warehouse cards and input-output notes. It is also useful to periodically conduct physical inventory of stocks and reconcile them with the accounting records. For employees, the tax vector is updated with each change in the number of employees, and declarations D112 and D205 are submitted on time.