2896

Authorization procedure and Trade Register aspects for CAEN 2896

Establishing a company with the main activity of CAEN code 2896 involves strictly following the procedures of the National Trade Register Office (ONRC). Upon incorporation, the standardized application, the constitutive act, and the affidavit according to Law 359/2004 are submitted, whereby the administrator attests to meeting the legal operating conditions. CAEN code 2896 does not require a prior operating authorization issued by another institution, but the company must correctly declare the main and secondary activities to avoid incorrect classifications that may lead to ONRC sanctions. After registration, the registration certificate and the unique registration code (CUI) are obtained, followed by the registration of the registered office in the Trade Register, which must be a space with appropriate destination (office, production hall). Any subsequent modification of the activity objects is made through an application for entry of changes at ONRC.

Regulatory framework, specific approvals, and control institutions

Although CAEN code 2896 is not part of the regulated activities category (which requires fire safety, health, or environmental authorization from the start), the company is subject to specific obligations. According to Law 319/2006 on occupational safety and health, the employer has the obligation to develop a prevention and protection plan, and in the case of machinery for processing plastics and rubber, the risks concern noise, vibrations, chemical substances (adhesives, solvents), and mechanical hazards. Also, depending on the substances used, the provisions of REACH (Regulation EC No. 1907/2006) and Law 212/2004 on chemical substances apply. The unit must hold an environmental opinion from the Environmental Protection Agency (APM) if the activity generates technological waste or emissions. The main control institutions are the Environmental Guard, the Territorial Labor Inspectorate (ITM), the Public Health Directorate, and the Tax Authority (ANAF) – for thematic fiscal checks. We recommend a prior legal compliance audit, as failure to comply with environmental or labor regulations can lead to substantial fines and suspension of activity.

Tax management, ANAF audit risk, and specific accounting

From a fiscal perspective, companies operating under CAEN 2896 are liable for corporate income tax (16%) or, if they meet the conditions (turnover under 500,000 euros, share capital held by individuals, etc.), may apply the micro-enterprise income tax (1% on income, respectively 3% if they have at least one employee). VAT applies at the standard rate of 19%, and companies with revenues under 300,000 lei may request VAT exemption. Accounting must distinctly reflect production costs: raw materials (plastics, rubber, additives), direct labor, and indirect production costs (depreciation of machinery, maintenance). Due to the specificity, batch inventory management is mandatory, as declaration 394 on deliveries/services applies. ANAF will particularly check the correctness of VAT deduction on machinery and raw material purchases, the tax treatment of recyclable waste (taxation of income from valorization), and compliance with transfer pricing in transactions with related parties. It is recommended to implement an inventory management system and electronic invoicing through the RO e-Factura system, as from July 1, 2024, all B2B invoices are transmitted in the national system. Also, salary payments must be reported through REVISAL, and the single declaration (112) is filed monthly. To minimize audit risk, keep supporting documents for all transactions, including contracts, waybills (if delivering), and job descriptions for production employees. Lack of documents for services provided (subcontracting works) is a red flag for ANAF inspectors.