2740

Authorization procedure and Trade Register aspects for CAEN 2740

When establishing a company that will carry out the activity of manufacturing electric lighting equipment (CAEN 2740), an application for registration must be submitted to the Trade Register (ONRC), accompanied by the constitutive act and the sworn declaration according to Law 359/2004. The administrator or associate declares that the company is not subject to special prior approvals (except for environmental ones, if applicable). If manufacturing involves large-capacity machinery or processes with explosion risk, approvals may be required from the Territorial Labor Inspectorate (ITM) and the Inspectorate for Emergency Situations (ISU). The activity is generally classified as medium risk for fire safety, and technical documentation (memorandum, site plan) must be attached. The fiscal vector is also completed at the Trade Register, and subsequently the company registers with the Tax Authority (ANAF) for VAT (if it exceeds the threshold of RON 300,000 turnover) and for corporate income tax.

Regulatory framework, specific permits and control institutions

The main applicable regulations are Law 211/2011 on waste (including WEEE), Government Decision 485/2007 on the safety of electrical equipment, Government Decision 1035/2014 on restrictions on the use of hazardous substances (RoHS). Finished products (luminaires, lamps, LEDs) must comply with standards EN 60598 (safety) and EN 55015 (electromagnetic compatibility). Control institutions are: ANPC (National Authority for Consumer Protection) for product conformity, Environmental Guard (enforcement of rules on hazardous waste - e.g., waste cables, electronic components) and ITM (occupational safety). The company must obtain an environmental permit if it exceeds certain thresholds (e.g., 500 kg of non-hazardous waste per year - typically falls under the simplified procedure). An approval from the Ministry of Health regarding noise and vibrations is also required, depending on production capacity.

Tax management, ANAF audit risk and specific accounting

For corporate income tax, the general rate of 16% applies (or 1% for micro-enterprises if it has at least 1 employee and does not exceed revenues of EUR 500,000). Value Added Tax (VAT) applies at the standard rate of 19% on the delivery of lighting equipment. There is a risk of ANAF audit if fiscal losses (carried forward losses) are recorded or if optimization schemes using transfer prices for the purchase of raw materials (e.g., LEDs from China) are used. Specific accounting includes recording raw materials (semi-finished products, cables, electronic components) in account 301 – Raw materials, valued at acquisition cost. Finished products are recorded in account 345, and production costs (labor, depreciation of machinery) are collected in account 921. Expenses for obtaining CE or EN certifications can be capitalized (account 208) if they meet the conditions for intangible assets. Sales of lighting equipment may be subject to reverse charge if they are considered goods provided for in the Fiscal Code for intra-Community transactions, which requires VAT adjustments. Also, purchases of high-value machinery are subject to linear fiscal depreciation. Inventory management is mandatory through account 371 (if global margin is applied) or analytically by product type, as ANAF may request annual inventory at standard cost.