2651

Authorization Procedure and Trade Register Aspects for CAEN 2651

Establishing a company operating under CAEN 2651 involves following the standard procedure at the Trade Register (ONRC), with the mention that the main object of activity must be rendered exactly according to the Classification of Activities in the National Economy, namely "Manufacture of instruments and devices for measuring, testing, control, navigation". At the time of filing the registration application, a sworn affidavit is completed in accordance with Law 359/2004, whereby the administrator declares compliance with the legal conditions for operation. It is necessary to obtain prior approvals from the Ministry of National Defense and/or the Ministry of Internal Affairs, if the activity involves the production of dual-use devices (civil and military). In addition, an extract from the National Agency for Export Controls will be requested for products subject to the export control regime. For the registered office, a title deed or lease agreement must be presented, and for operations with spaces intended for production, a sanitary approval and one from the Territorial Labor Inspectorate are required.

Regulatory Framework, Specific Approvals and Control Institutions

The main applicable normative act is Law 389/2005 on the control of exports of dual-use products, supplemented by EU Regulation 428/2009. Operators in CAEN 2651 must obtain an operating authorization from the National Agency for Export Controls if they produce devices that may fall under the control lists. Periodic inspections are carried out by the National Authority for Consumer Protection, for verifying metrological compliance, and by the Territorial Labor Inspectorate, for the safety of production processes. Companies producing aerial navigation or radar devices must hold a license from the Romanian Civil Aeronautical Authority. For activities involving radiation or lasers, an approval from the National Commission for Nuclear Activities Control is added. Important: any change in the product range must be notified to the Trade Register (ONRC) and the control institutions, under penalty of suspension of activity.

Tax Management, ANAF Audit Risk and Specific Accounting

From a fiscal perspective, CAEN 2651 is subject to the normal VAT regime, and the classification within the scope of technological equipment production may attract reduced taxation rates for reinvested profit, according to the Fiscal Code. Companies must record separately in accounting the inventories of raw materials and finished products, valued at production cost or net realizable value. The Tax Authority (ANAF) may trigger an audit in case of discrepancies between the 394 declarations and the VAT turnover, or if the gross margin recorded is below the sector average. The specific risk lies in the failure to register imports of components requiring a license, which entails fines of up to 50,000 lei and confiscation of goods. For exports of control devices, it is recommended to set up a transfer pricing file to justify prices charged to affiliates. Proper management of the single declaration and the tax vector is mandatory, and for production workers, night work bonuses and special working conditions apply. Note: Companies benefiting from profit tax exemptions for research and development activities must first request the agreement of ANAF, submitting documentation demonstrating the innovative nature of the devices.