2370

Authorization procedure and Trade Register aspects for CAEN 2370

To register the activity of cutting, shaping and finishing of stone with the Trade Register (ONRC), the standard registration application is submitted, accompanied by the constitutive act (LLC or sole proprietorship). The CAEN code 2370 is declared as the main or secondary object of activity. There are no mandatory prior authorizations from the ONRC for this code, but it is necessary to declare on one's own responsibility pursuant to Law 359/2004 that the activity complies with legal conditions. At the registered office, proof of the right of use must exist, and the registered office may be different from the place of business where production is carried out. For the place of business, a secondary headquarters declaration is submitted. It is recommended to check the urban zoning (outside the city or industrial area) to avoid later blockages. The issuance of the certificate of registration by the ONRC is conditional on the payment of legal fees.

Regulatory framework, specific permits and control institutions

Environmental permits and waste management

Stone processing activities (cutting, shaping, finishing) generate stone waste/sludge, noise and dust. It is mandatory to obtain an environmental permit from the Environmental Protection Agency (APM) if the installed capacity exceeds 10 tonnes/day of finished product or, for smaller capacities, a notification according to legislation is required. Also, a waste management plan (including sludge) and a contract with an authorized sanitation operator must be drawn up. Dust emissions into the atmosphere require a GHG emission authorization or emission points, according to Law 104/2011. It is recommended to assess the noise impact and obtain the opinion of the Public Health Directorate (DSP) for occupational noise.

Construction/operation permits

If the activity involves a production hall or concrete mixers, a building permit from the municipality is required. For stone extraction (if the activity includes a quarry), the Mining Law 85/2003 applies and an operating license from the National Agency for Mineral Resources (ANRM) is required. For processing only, no mining license is required, but it is verified that raw materials are purchased from legal holders.

Labor Inspectorate (ITM) and Occupational Safety and Health (OSH)

The Labor Inspectorate (ITM) controls compliance with occupational safety and health (OSH), which is mandatory in mechanical processes (cutting with diamond disc, chemical pickling). It is required to develop own safety instructions, check work equipment and obtain ISCIR authorization for pressure equipment (if compressors exist).

Tax management, ANAF audit risk and specific accounting

Taxation and VAT

Companies with CAEN 2370 are liable for corporate income tax (16%) or micro-enterprise income tax (1% or 3% if they exceed EUR 500,000). VAT applies at the standard rate (19%) for the sale of processed stone. There is the possibility of applying VAT on collection (if turnover is below EUR 500,000). It is recommended to constantly check the micro-enterprise conditions to avoid recalculation of the tax.

Management accounting and inventory revaluation

The activity involves inventories of raw materials (stone blocks) and finished products (slabs, tiles, decorative objects). The production cost includes depreciation of machinery (cutting, polishing machines), direct labor and indirect expenses (electricity, water). It is recommended to use analytical management accounts by type of stone (granite, marble, limestone). Inventories are revalued at the end of the financial year, with adjustments for impairment.

Audit risk and ANAF checks

ANAF may open a tax inspection regarding: documentation of raw material purchases (verification of legal origin - extraction or authorized quarry), correctness of revenue recording (avoidance of under-invoicing), calculation of machinery depreciation, and tax treatment of waste (valorization of residues as secondary goods). It is mandatory to keep complete tax records and sales contracts with legal entity clients. The RO e-Factura system is mandatory for all invoices issued to public entities or for intra-Community purchases. The VAT return (D300) must be correlated with the sales journal. Also, the single tax return (D212) for income realized by associates is filed annually.

Labor aspects

It is recommended to conclude full-time or part-time employment contracts for craftsmen (shapers, machine operators). The collective labor agreement at the industry level provides for bonuses for difficult working conditions. Mandatory: the register of employees (REVISAL) and D112 declarations. For day laborers, the day laborer register is completed and declared to the ITM.

Note: All enterprises carrying out cutting, shaping and finishing of stone activities must register with the ONRC and obtain environmental approvals before starting production. Non-compliance may result in fines or suspension of activity by the Environmental Guard or the ITM.