2366

Authorization procedure and Trade Register aspects for CAEN 2366

The establishment of a company with the main activity object CAEN 2366 involves going through the standard steps at the Trade Register (ONRC), noting that the economic operator must declare the activity exactly as provided in the Classification of Activities in the National Economy (CAEN Rev. 3). For registration, the following are submitted: the registration application, the constitutive act, the affidavit according to Law 359/2004 on the fulfillment of operating conditions, and the identity documents of the shareholders/administrators. There are no prior authorizations required from ONRC for this code, but subsequent sectoral approvals are necessary. For the registered office, proof of the right of use (lease contract, sale-purchase contract, etc.) must be provided. After registration, the registration certificate is obtained and the effective registration in the trade register is requested. At the same time, fiscal registration with the Tax Authority (ANAF) is required, following which the tax identification code and the fiscal vector are assigned. Based on the fiscal vector, monthly/quarterly obligations are established: declarations 300, 390, 100, 112, according to the VAT regime (if the exemption threshold of 300,000 RON is exceeded, VAT becomes mandatory).

Regulatory framework, specific approvals and control institutions

The field of manufacturing articles of concrete, cement and plaster is subject to regulations on quality in construction (Law 10/1995, Law 372/2005 on energy performance), as well as technical standards regarding aggregates, cement, additives. Finished products must comply with harmonized European standards (EN) for CE marking. Obtaining a technical agreement for products (from INCD INCERC or other notified bodies) and, if applicable, certification of the quality management system (ISO 9001) is required. Also, the activity takes place under the environmental permit (Law 84/2006 & GEO 195/2005) – obtained from the Environmental Protection Agency (APM) or the Environmental Guard, depending on the impact analysis and the type of waste generated (dust, waste water, construction waste). Control is exercised by the Territorial Labour Inspectorate (ITM) for occupational safety (protection against cement dust, repetitive movements), the State Inspectorate in Construction (ISC) for verifying the conformity of delivered products, and ANAF – Fiscal Inspection Directorate. The operator must keep strict records of raw materials (cement, aggregates, plaster, water) and manufacturing recipes.

Tax management, ANAF audit risk and specific accounting

From an accounting perspective, classification under CAEN 2366 involves applying the accounting regulations in accordance with OMFP 1802/2014 (or IFRS, as applicable). The accounting must reflect production costs: raw materials (cement, aggregates, plaster, sand, water), direct labor, depreciation of specific machinery (sieves, mixers, presses). Finished product inventories are valued at production cost or net realizable value, with possible provisions for impairment. Personnel expenses are recorded in account 641, and payroll taxes are declared in D112. The major tax risk relates to VAT – if the company applies reduced rates for certain supplies (e.g., poured concrete – standard rate 19%; but for precast concrete elements, the rate may be 19% or 5% for social housing, subject to certification). ANAF may reclassify transactions if the final destination is not proven. Also, there is a risk of VAT adjustment for purchases of machinery used for mixed purposes (taxable and exempt operations). Checks on social security contributions concern the correct classification of personnel according to working conditions (work groups). For tax facilities on profit tax (exemption for reinvested profit, according to GEO 19/2014), they may apply for the purchase of technological equipment (sieves, mixers). It is imperative to keep supporting documents (invoices, input-output notes, cost calculation sheets) for the duration of the statute of limitations (5 years). Any tax inspection will verify the reality of transactions, consistency with inventories and VAT recalculation. We recommend consulting a certified accountant for preparing monthly trial balances and declarations, and a specialized commercial lawyer for updating the constitutive acts at the Trade Register in case of changes (change of registered office, extension of secondary CAEN codes, capital increase for investments in heavy machinery).