2365

Authorization procedure and Trade Register aspects for NACE 2365

The establishment of a company with the activity 2365 - Manufacture of asbestos-cement products requires compliance with strict procedures at the Trade Register (ONRC). When submitting the registration application, the associates must present a declaration on their own responsibility according to Law 359/2004, certifying compliance with the legal conditions for carrying out the activity. At the same time, it is mandatory to obtain prior environmental approvals (from the Environmental Protection Agency) and occupational health and safety approvals, since the processing of asbestos-cement involves major risks to workers' health and the environment. If the company will use asbestos, a health approval must be requested according to the norms of the Ministry of Health. The Trade Register checks, based on the declaration on own responsibility, whether there are legal restrictions regarding the production or marketing of asbestos-cement, according to Government Emergency Ordinance no. 124/2003 on banning the use of asbestos. Thus, it is essential that the administrator correctly declares the main activity according to NACE rev. 3, and that the articles of association include related NACE classes: 2362 (manufacture of plaster products), 2363 (manufacture of concrete), 2364 (manufacture of mortar) and 2369 (manufacture of other articles of concrete, cement and plaster).

Regulatory framework, specific approvals and control institutions

The activity of manufacturing asbestos-cement products is governed by a strict legal framework. EU Directive 1999/77/EC and Law no. 279/2011 ban the placing on the market and use of asbestos, with strictly regulated exceptions. In Romania, the production of asbestos-cement is allowed only if the technology ensures the encapsulation of asbestos fibers. Control institutions include the Labour Inspectorate (ITM) for occupational safety, the National Environmental Guard for checking emissions and hazardous waste management, and the Public Health Directorate for monitoring airborne asbestos concentration. The company must obtain ISCIR approval for pressure equipment used in the manufacturing process. Also, a waste management plan approved by the Environmental Protection Agency is required, since asbestos-cement waste is classified under codes 17 06 01* (construction materials containing asbestos). Each waste transport must be accompanied by a consignment note according to Government Decision no. 1061/2008.

Fiscal management, ANAF audit risk and specific accounting

From a fiscal point of view, companies operating under NACE 2365 must register with the Tax Authority (ANAF) as VAT payers upon incorporation, considering that finished products are subject to reverse charge? (no, as a rule the standard VAT rate of 19% applies). It is mandatory to complete the single declaration on estimated income and social contributions, especially if the administrator is also an associate. Specific accounting includes capitalizing the acquisition costs of protective equipment and accelerated depreciation for filtration installations. ANAF may initiate an unannounced inspection to verify the reality of operations and the correct classification under the NACE code. Major risk: failure to treat asbestos-cement waste according to the law attracts fines from 50,000 to 100,000 lei. Also, non-compliance with dust emission limits (according to MMAP Order no. 462/1993) may lead to suspension of activity. The company must report all deliveries through the RO e-Factura system, and reverse charge applies to intra-Community acquisitions of raw materials. In the case of exports of finished products (if exported), VAT refund may be requested with subsequent control of transport documents.