3316

Authorization procedure and Trade Register aspects for CAEN 3316

Establishing a company that carries out repair and maintenance of civil aircraft and spacecraft (CAEN 3316) involves going through the standard registration steps at the Trade Register (ONRC), with the mention that the main object of activity must be CAEN 3316. According to Law 359/2004, a sworn declaration is submitted at registration stating that the company meets the specific operating conditions. For CAEN 3316, this involves having a workshop/premises authorized by the Romanian Civil Aeronautical Authority (AACR) or the European Aviation Safety Agency (EASA), in accordance with national and European aviation regulations. The registration file must include proof of the registered office (lease agreement, property deed) and the fiscal registration certificate. It is also recommended to obtain a prior opinion from AACR regarding technical capacity and personnel accreditation, although it is not mandatory at the time of registration, but becomes mandatory within 30 days of registration in order to effectively start operations. In case of subsequent modification of the object of activity or the registered office, the data must be updated with the Trade Register and re-authorization by AACR is required.

Regulatory framework, specific approvals and control institutions

The activity of repair and maintenance of aircraft (MRO – Maintenance, Repair, Overhaul) is strictly regulated by Regulation (EU) 748/2012 and Regulation (EU) 1321/2014, transposed into Romanian legislation by Government Decision no. 101/2018 on civil aviation. Economic operators must hold a maintenance organization certificate (Part-145) issued by the Romanian Civil Aeronautical Authority (AACR) or EASA. For spacecraft, specific regulations of the Romanian Space Agency (ROSA) apply. Periodic inspections are carried out by AACR inspectors, and non-compliance with safety rules may lead to suspension or withdrawal of the certificate. Institutions involved include: Trade Register (ONRC) (for registration), Tax Authority (ANAF) (tax control), Labour Inspectorate (ITM) (occupational safety and health control), State Inspectorate for Boilers, Pressure Vessels and Lifting Installations (ISCIR) (for pressure equipment used) and, obviously, AACR/ROSA. Environmental approvals from the Environmental Protection Agency (APM) are required (for hazardous waste management, such as oils, solvents).

Tax management, ANAF audit risk and specific accounting

From a fiscal point of view, income from aircraft repair and maintenance services is subject to standard VAT (19%), unless they are provided as services to a client outside the EU. Invoicing must comply with RO e-Factura rules, starting from 2024. When setting transfer prices, attention must be paid to transactions with related parties, if repairs are performed for group companies. Expenses for spare parts, subassemblies, certifications and labor are fully deductible, provided they are documented. Specific accounting requires separate recording of costs for each repair contract, physical inventory of components and depreciation of specialized equipment. The fiscal vector is declared to the Tax Authority (ANAF) through declaration 070, and corporate income tax and VAT are paid quarterly. Audit risk exists regarding the useful life of assets (aircraft, engines, components) and the manner of revenue recognition in the case of multi-year contracts (percentage of completion method). It is recommended to consult a specialized accounting expert in aviation for preparing financial statements in accordance with International Financial Reporting Standards (IFRS).