3040

Authorization procedure and Trade Register aspects for CAEN 3040

Setting up a company engaged in the manufacture of military fighting vehicles (CAEN 3040) requires going through specific steps at the Trade Register (ONRC). When filing the registration application, the affidavit according to Law 359/2004 on fulfilling the operating conditions must be completed. For this CAEN code, it is mandatory to mention the main object of activity as "Manufacture of military fighting vehicles", and the secondary CAEN code may include related activities such as repair or maintenance of these vehicles, coded under CAEN 3312 (Repair of machinery) or CAEN 3315 (Repair of transport equipment, except motor vehicles).

For registration, standard documents are required: the registration application, the constitutive act, proof of registered office (lease contract or property deed), and the declared office will be checked to ensure it meets the technical and safety standards specific to military production. It is also necessary to obtain an order number from the Trade Register, after which the operating licenses from the institutions with responsibilities in the military field must be requested.

Regulatory framework, specific endorsements and control institutions

The manufacture of military fighting vehicles falls under Law No. 405/2003 on the control of exports of military products and related legislation on national security. The economic operator must obtain endorsements from the Ministry of Economy, Entrepreneurship and Tourism (MEAT) - the General Directorate for Export Control, as well as from the Ministry of National Defence (MApN). Additionally, military production requires authorization from the National Authority for the Protection of Classified Information (ORNISS) for the management of classified data.

The activities are subject to permanent control by the State Inspectorate for Export Control (ISCE) and the territorial structures of MApN. Regulations on military quality standards (STANAG, AQAP) and environmental protection norms also apply, as production processes involve hazardous substances and special waste. Consequently, the company must hold an environmental permit according to Government Emergency Ordinance 195/2005 and be registered in the RO e-Factura system for relations with the state.

Tax management, ANAF audit risk and specific accounting

From a fiscal perspective, companies manufacturing military fighting vehicles are subject to the standard corporate income tax (16%), with the possibility of applying the micro-enterprise income tax system if the legal conditions are met (turnover under 500,000 EUR, 1-9 employees, etc.). VAT applies at the standard rate (19%), and for supplies to the Romanian state (MApN), exemptions with the right of deduction may apply according to Article 294 of the Fiscal Code for supplies intended for the armed forces. In the case of exports of military products, VAT exemption with the right of deduction applies, but with the obligation to keep supporting documents for customs control.

Specific accounting requires separate recording of strategic material inventories, work in progress and finished products under special regime. Production costs include depreciation of specialized machinery, consumption of materials (armor, electronic systems), and expenses for qualified personnel. The ANAF audit risk is high, given the special tax regime and potential cross-border transactions involving military components. Tax inspections typically focus on compliance with transfer pricing provisions, tax deductions for research and development (if any), and correctness of VAT reporting. The company must also submit the single corporate income tax return and register all issued and received invoices in RO e-Factura. Failure to meet reporting obligations may lead to penalties and suspension of operating licenses.

Consultant's recommendation: before starting the activity, contact a lawyer specialized in commercial and fiscal law for the correct drafting of documents and obtaining the necessary endorsements.