3220

Authorization procedure and Trade Register aspects for CAEN 3220

The establishment of a company with the main activity CAEN 3220 involves going through the standard steps at the Trade Register (ONRC), in compliance with Law no. 359/2004 on the simplification of registration procedures. When filing the dossier, the administrator completes a sworn declaration confirming the fulfillment of operating conditions: adequate space, technical equipment, qualified personnel (luthiers or specialized workers in wood and metal processing). For authorized individuals (PFA) or individual enterprises (II), an operating permit is requested from the mayor's office, and for companies (SRL), registration with the ONRC is followed by obtaining the unique registration code (CUI) and the fiscal registration certificate.

Endorsements and specific documents: There are no mandatory prior endorsements at the national level, but the mayor's office may request an urbanism certificate and an ISU endorsement if the activity involves storage of flammable materials (varnishes, paints, thinners). We recommend checking the Local Council Decision on noise, as instrument production may generate vibrations and sounds requiring soundproofing measures.

For companies wishing to export musical instruments (e.g., violins, guitars, organs), registration in the RO e-Factura system is required for issuing electronic invoices to clients abroad.

Regulatory framework, specific endorsements and control institutions

The manufacturing of musical instruments is not subject to sectoral regulations such as licenses or special authorizations (as in the case of weapons or medicines). However, depending on the raw materials used, the following normative acts may apply:

• Law no. 211/2011 on waste regime – if wood waste, paints, thinners are generated, a contract with an authorized sanitation operator and waste recording (form List of waste) are required.
• Law no. 319/2006 on occupational safety and health – obligation to carry out risk assessment (wood dust, noise, physical effort) and to provide protective equipment (masks, earplugs).
• EU Regulation no. 1907/2006 (REACH) – chemical products (varnishes, thinners) must be accompanied by safety data sheets and used according to instructions.

Control is exercised by the Territorial Labor Inspectorate (ITM), the Environmental Guard, and for technical aspects regarding instrument quality, there is no specific institution (except for products falling under EN standards for toys, if instruments are intended for children). In this case, SR EN 71-2 on flammability applies.

Recommendation: partner with a wood expert or a certified luthier to ensure compliance with quality standards imposed by the European market.

Tax management, ANAF audit risk and specific accounting

From a fiscal perspective, CAEN 3220 falls under the "production" category, regardless of whether instruments are manufactured in series (production line) or artisanal (workshop). This determines specific fiscal obligations:

• Corporate income tax (16%) – calculated on the difference between revenues and deductible expenses. Microenterprises that do not exceed the threshold of EUR 500,000 and have at least one employee may apply the microenterprise income tax (1%–3% depending on age).
• VAT – the normal reverse charge regime applies if instruments are sold to legal entities in the EU, but for sales to individuals in Romania, the standard rate of 19% applies. We recommend registration for VAT purposes even if turnover is below the threshold of RON 300,000 (to benefit from VAT deduction on purchases of raw materials – wood, strings, mechanical parts).
• Social contributions – the employer pays CAS (25%) and CASS (10%) for employees, and for administrators, income must be declared in the single declaration (D212).

ANAF audit risk: Companies that use cash for raw materials or do not justify stocks (e.g., material shortages without documents) are vulnerable to inspections. ANAF will analyze the gross margin and production costs; a margin below the market average (around 30-40% for artisanal instruments) may trigger a substantive review. Also, fictitious exports to non-EU states to benefit from 0% VAT are severely penalized.

Specific accounting: It is recommended to use inventory accounts (301 – raw materials, 302 – consumables) and work-in-progress records (account 331 – products in progress). Finished instruments are recorded in account 345 – finished products, and the production cost must be calculated according to OMPF no. 1802/2014.

For tax optimization, you can outsource service and repair of instruments to a specialized entity (CAEN code 9521) to reduce the taxable base. Consult with a tax advisor to determine if you can apply the reduced VAT rate of 5% (in case the instruments are considered "cultural goods" – see Annex 2 of the Fiscal Code, position 51).