1722

Authorization procedure and Trade Register aspects for NACE 1722

Establishing a company with the main activity code NACE 1722 requires going through the standard procedures at the Trade Register (ONRC), noting that secondary activity codes may include related codes such as 1721 (manufacture of corrugated paper/paperboard) or 1723 (manufacture of paper office products). When submitting the registration application, a sworn statement under Law 359/2004 is completed, by which the applicant attests to fulfilling the legal operating conditions. No environmental or health permit is required at the time of registration, but these become mandatory before the actual start of production (see next section). At the Trade Register, the availability of the company name is checked and the constitutive documents are submitted; the processing time is a maximum of 5 working days for registration under the simplified procedure.

Regulatory framework, specific permits and control institutions

The activity of manufacturing household and sanitary products from paper/paperboard is subject to several normative acts. The main control authority is the Environmental Guard and the National Agency for Environmental Protection, which issue the environmental permit and the integrated environmental authorization (if the production volume exceeds legal thresholds). The health permit is obtained from the county Public Health Directorate, as the products come into contact with food/sanitary applications (toilet paper, napkins). ANPC (National Authority for Consumer Protection) checks product conformity with SR EN ISO standards and EU regulations regarding CE marking. The Territorial Labour Inspectorate controls occupational safety, and ISU enforces fire prevention rules, specific to paper/paperboard storage (high fire load).

Tax management, ANAF audit risk and specific accounting

From a fiscal perspective, companies with NACE 1722 are subject to standard corporate income tax (16%) or micro-enterprise income tax if they meet the legal conditions (turnover under EUR 500,000, at least one employee, etc.). The fiscal vector is completed at the Tax Authority (ANAF) within 30 days of registration, and the single declaration is filed by the associates if there are dividend incomes. VAT: manufacturing of paper/paperboard products is subject to the standard VAT rate (19%), except for feminine hygiene products or other exempt products (rare cases). It is mandatory to issue invoices through the RO e-Factura system as of 2024, and reporting through e-Transport for goods with high fiscal risk (e.g., transport of cellulose or waste paper). ANAF audit risk: the activity involves purchases of raw materials (paper pulp, cellulose) and high utility expenses, drawing attention to the correctness of inventory recording and production costs. Strict analytical records by production batches and periodic inventory of raw materials and finished products are recommended. Specific accounting requires the use of class 3 accounts (raw materials, consumables) and class 9 (internal management accounts) for calculating production costs. Straight-line/declining depreciation for machinery is done according to the Catalog for the classification of fixed assets (group 2.2.7 – paper manufacturing machines). Expenses for obtaining permits (environmental, health) are recorded as intangible assets or prepaid expenses, depreciable over the validity period of the permit.