2451

Authorization procedure and Trade Register aspects for CAEN 2451

Opening a company operating under CAEN code 2451 – Cast iron founding – requires compliance with strict formalities at the Trade Register (ONRC). When setting up the company, the application form, the constitutive act, proof of registered office and the affidavit under Law 359/2004 on fulfilling operating conditions must be submitted. For this code, the main object of activity must be clearly 'Cast iron founding', and secondary objects may include related activities such as heat treatments or simple mechanical processing. Registration with the Trade Register is mandatory within 30 days from the date of incorporation, under penalty of a fine. Moreover, the actual start of activity must be notified to the Trade Register within 30 days of the first commercial act, pursuant to Law no. 26/1990. Any subsequent change of registered office, shareholders or administrators must be registered with the Trade Register. Failure to register the casting operation may result in annulment of the company’s registration and penalties imposed by the Financial Guard.

Regulatory framework, specific approvals and control institutions

Cast iron founding is an industrial activity with environmental and occupational safety impacts. Prior to registration with the Trade Register, the applicant must obtain an opinion from the Environmental Protection Agency (APM) for the operation of melting and casting installations. This is granted based on an impact study, an emission balance and a waste management plan, in accordance with Law no. 278/2013 on industrial emissions. Also, the Territorial Labour Inspectorate (ITM) issues the fire safety authorization and the occupational safety and health opinion. Notification regarding the chemical substances used is made to the National Agency for Chemical Substances. Casting activities involve major risks: dust, gases, high temperatures; thus, a major accident prevention plan approved by the Emergency Situations Inspectorate (ISU) is required. Therefore, lease or purchase pre-contracts for the space must include clauses regarding the possibility of obtaining these approvals. Any deviation from environmental or labour standards may lead to suspension of activity and substantial fines (10,000-50,000 lei) from the Environmental Guard or ITM.

Tax management, ANAF audit risk and specific accounting

For CAEN 2451, the tax regime is general: corporate income tax of 16% or micro-enterprise income tax (1% or 3% depending on the number of employees), if the company does not exceed the legal thresholds. VAT applies to the supply of cast iron (standard rate 19%). ANAF may initiate a tax audit at any time, especially if discrepancies are found between raw material inventories (scrap, coke, pig iron) and declared production. The reporting obligation via the RO e-Factura system for supplies to legal entities is mandatory from January 2024; non-compliance attracts fines of 5% of the invoice value. Declaration 394 (informative declaration on supplies/services) is submitted monthly or quarterly, depending on turnover. Upon incorporation, the tax registration (Declaration 010) is filed with ANAF, where CAEN code 2451 is mentioned as the main activity. VAT registration is required if turnover exceeds 300,000 lei or voluntarily. Specific accounting involves inventory valuation at production cost (including indirect costs: energy, labour, furnace depreciation). ANAF checks the deductibility of utility costs (electricity, gas), which must be supported by supporting documents. Practical tips: keep strict records of cast iron quantities, rejects and recyclable waste; perform annual inventory; hire an accountant with experience in industrial production. Non-compliance with accounting standards attracts fines between 5,000 and 15,000 lei, according to the Fiscal Procedure Code.