3318

Authorization procedure and Trade Register aspects for CAEN 3318

Registration with the Trade Register (ONRC) requires that the declared main object of activity be strictly the CAEN 3318 code. This code is classified as repair and maintenance of military fighting vehicles, ships, aircraft and military spacecraft. This class excludes the manufacture of military equipment, covering only their repair and maintenance.

When establishing the company, the associates submit a sworn declaration under Law 359/2004 that the activity does not require special permits or authorizations to operate. The electromechanical invoice shows that the authorities may subsequently request approvals from the Ministry of National Defence or the Ministry of Economy. ONRC does not require prior approvals for registration but notifies the competent authorities. The company must notify the Tax Authority (ANAF) of the fiscal vector with CAEN 3318 code, without needing special VAT registration, but must request the fiscal registration certificate.

For the registered office or secondary points, proof of the right to use the property is mandatory. Repair activities may require environmental or fire brigade authorizations, depending on the hazardous substances used. Establishing a branch requires registration with ONRC for each place of work.

Regulatory framework, specific approvals and control institutions

The CAEN 3318 activity is regulated by Military legislation and Government Decisions on the control of activities under special regime. Any repair of military equipment is subject to the rules of the Ministry of National Defence and the Ministry of Economy. For military aircraft and ships, specific regulations apply: the Military Aeronautical Authority (AAM) for aircraft and the Romanian Naval Authority (ANR) for ships. These issue repair authorizations and personnel certifications. Additionally, NATO rules on security and management of military materials apply. Control is exercised by Tax Authority (ANAF) for taxation, the State Inspectorate in Construction (ISC) for repair installations, and the National Environmental Guard for environmental protection.

Access to classified information or military materials requires security clearances for personnel and the unit, under Law 182/2002. The company must implement physical and cyber security measures. Specific approvals include: military aeronautical repair authorization, military naval authorization, and security certification. Without these, the activity is illegal and subject to criminal penalties.

Tax management, ANAF audit risk and specific accounting

From a fiscal perspective, CAEN 3318 does not benefit from special tax facilities. The company applies the standard corporate income tax of 16% or micro-enterprise income tax if it meets the turnover and staff conditions. For services provided, the standard VAT rate of 19% applies, with the obligation to issue invoices in the RO e-Factura system for B2B transactions. Refurbished military assets do not fall under cash accounting VAT but are subject to general rules. When purchasing parts, reverse charge applies for goods under special regime.

ANAF audit risk is high due to the military specificity. ANAF verifies compliance with VAT returns, deductible expenses, and unreported income. Invoices issued to military entities must apply the correct VAT rate. Accounting must separate revenues and costs for each military contract, with separate records for parts inventories. Application of Accounting Standards for Special Orders (IAS 11/IFRS 15) is mandatory for long-term repair contracts. Depreciation of equipment and amortization of installations shall be based on specific useful lives.

Consultation with a tax expert is recommended for handling security and certification costs. Failure to meet tax obligations results in fines and suspension of activity.