2341

Authorisation procedure and Trade Register aspects for CAEN 2341

Setting up a company with the main activity of CAEN code 2341 – manufacture of ceramic household and ornamental articles – is carried out, in terms of registration formalities, by submitting to the Trade Register (ONRC) the registration application, the constitutive act and the affidavit pursuant to Law 359/2004 on the fulfillment of operating conditions. Unlike other activities, this CAEN code does not require special prior endorsements at registration, but within 30 days of registration, a sanitary environmental permit must be obtained from the Public Health Directorate, as the ceramic manufacturing process involves emissions of dust and chemicals. Also, depending on the production specifics (firing in kilns), an ISU fire safety permit may be required. At incorporation, the main activity shall be declared as CAEN 2341, but in practice it is recommended to also register secondary related codes (e.g., 2349 for other technical ceramic products, or 4753 for retail trade of household articles). After registration with the ONRC, the new taxpayer must register with the Tax Authority (ANAF) for the attribution of the unique registration code (CUI) and request the setting of the fiscal vector, whereby the due taxes are declared: corporate income tax (or micro-enterprise tax, if conditions of staff and revenue are met), VAT (normal registration or VAT at collection) and specific tax on lucrative activities, although for ceramic production the standard taxation system generally applies.

Regulatory framework, specific permits and control institutions

Manufacturing ceramic household and ornamental articles is subject to specific technical and environmental regulations. Firstly, the production process involves firing kilns that emit dust, nitrogen oxides, volatile organic compounds and carbon dioxide, making it mandatory to obtain an environmental permit from the Environmental Protection Agency (APM), according to Law 104/2011 on ambient air quality and Emergency Ordinance 195/2005. Depending on production capacity (over 75 tonnes/day), an integrated environmental permit (AIM) may be required. Compliance with technical norms on energy efficiency of kilns and filtration systems is also required. From an occupational health and safety perspective, a risk assessment regarding exposure to dust and noise must be approved by the Labour Inspectorate (ITM). For the marketing of finished products, especially those intended to come into contact with food (plates, cups, bowls), Regulation EC 1935/2004 on materials and articles intended to come into contact with food applies – thus, a certificate of conformity issued by an accredited laboratory (e.g., RENAR) is necessary. Periodic controls are carried out by: the Environmental Guard (for compliance with emission conditions), the Sanitary Veterinary and Food Safety Authority (DSV) (for food products – only if conformity with migration requirements is attested), the Labour Inspectorate and the Tax Authority (ANAF) (through substantive checks on taxation and fiscal declarations). For exports of ornamental products, the Romanian Customs Code applies; for extra-Community exports, certificates of origin are required.

Fiscal management, ANAF audit risk and specific accounting

The taxation specific to CAEN 2341 falls under the general rules of the Fiscal Code, with particularities related to the cost structure. The manufacturing process involves raw materials (clay, kaolin, feldspar, colorants) and significant indirect costs (electricity for kilns, natural gas). Accounting must properly allocate costs per product, in accordance with the provisions of Order of the Minister of Public Finance (OMF) 1802/2014. From a VAT perspective, the VAT-at-collection system (Articles 282^1-282^3 of the Fiscal Code) may be applied if turnover does not exceed RON 4,500,000. However, it should be noted that most clients (legal entities) prefer immediate VAT deduction. For micro-enterprises, a revenue threshold of EUR 2,000,000 makes taxation at 1% or 3% applicable (depending on whether they have employees). A major audit risk by the Tax Authority (ANAF) exists regarding the correct declaration of stored production and production costs – tax inspections typically verify the inventory of finished and unfinished products and the substantiation of raw material and energy expenses. To reduce risk, monthly stock balances and material receipt documents should be maintained. Other risks concern the non-declaration of income from sales in the RO e-Factura system, mandatory for B2B operations since January 2024. Also, if ornamental articles that can be considered works of art (unique, signed by the artist) are produced, a reduced VAT rate of 9% may apply (Article 291(2)(d) of the Fiscal Code), but proof of the artistic nature is required. Specific taxation encourages the use of the standard corporate income tax system (16%) for companies with high margins, as it allows full deduction of depreciation expenses for equipment (kilns, modelling machines) at rates of up to 20% per year. We recommend formalising a robust accounting circuit, with monthly production reports, job sheets and detailed expense statements.