2814

Authorization procedure and Trade Register aspects for CAEN 2814

Setting up a company with the main activity 'Manufacture of taps and valves' (CAEN code 2814) involves the standard registration steps at the National Trade Register Office (ONRC), noting that this industrial activity may require prior approvals. When submitting the registration application, the affidavit pursuant to Law 359/2004 regarding the fulfillment of legal conditions for carrying out the activity is completed. In practice, authorities may request an urbanism certificate or environmental permit, depending on the specifics of production (e.g., casting, heat treatments, mechanical finishing).

At ONRC, the constitutive acts (company contract, articles of association), identity documents of the shareholders/managers and proof of registered office are submitted. The legal term for resolution is up to 5 working days from the submission of the complete file, but it can be expedited by paying an additional fee. After registration, the single registration certificate with the unique registration code (CUI) is obtained and tax registration procedures with the Tax Authority (ANAF) are initiated.

Regulatory framework, specific approvals and control institutions

The manufacture of taps and valves falls within the metalworking and metal processing industry, subject to strict regulations on occupational health and safety (Law 319/2006), fire safety (ISU approval) and environmental protection (environmental permit or environmental agreement, according to Government Emergency Ordinance 195/2005). Depending on the materials used (cast iron, steel, brass, plastics), additional regulations on emissions and industrial waste may apply.

Finished products may fall under Directive 2014/68/EU on pressure equipment (transposed by Government Decision 584/2017), and for certified reliable parts, CE marking may be required. Market control is carried out by the National Authority for Consumer Protection (ANPC) and the State Inspectorate for the Control of Boilers, Pressure Vessels and Lifting Installations (ISCIR).

Registration as a VAT payer is mandatory if turnover exceeds the threshold of 300,000 lei or optionally upon incorporation. Registration in the RO e-Factura system is recommended for invoicing to public and private entities, being mandatory from 2024 for most B2B transactions.

Tax management, ANAF audit risk and specific accounting

Accounting specific to industrial production activities involves strict recording of raw material stocks (metals, alloys, auxiliary materials), work in progress and finished products. Production costs (direct labor, indirect expenses, machinery depreciation) are calculated according to the Order of the Minister of Public Finance 1802/2014. Implementing a cost calculation system per order or per production phase is recommended.

From a tax perspective, corporate income tax is paid quarterly, with the possibility to opt for micro-enterprise income tax (if within legal thresholds). ANAF may initiate a tax audit in case of discrepancies between declared and physical stocks, or in the case of deliveries without invoices. To reduce tax risk, proper archiving of procurement documents (invoices, accompanying waybills) and monthly preparation of stock balances is required.

Also, managing meal vouchers, employment contracts for direct productive staff (skilled workers, welders, mechanical fitters) and periodic declarations (D112, D406 SAF-T) must be aligned with ANAF requirements. Non-compliance with reporting obligations (e.g., late submission of the single declaration for associations) may attract substantial fines. All documents are kept for the legal term of 10 years.