3512

Procedure for authorization and Trade Register aspects for NACE 3512

For the registration in the Trade Register of a company wishing to carry out activities of electricity production from renewable sources, the standard incorporation procedure applies, but with specific particularities related to the field. At the establishment, the constitutive acts (company contract, statutes) are submitted and authorization to operate is requested according to Law 359/2004, by filing a declaration on own responsibility that the company fulfills the legal conditions for carrying out the activity. For NACE code 3512, it is mandatory to obtain prior environmental approvals and from the National Energy Regulatory Authority (ANRE), which are submitted to the Trade Register (ONRC) subsequently, or the company mentions that it will obtain them after registration. When completing the registration application, the main activity is specified according to NACE Rev.2: 3512 – Production of electricity from renewable sources, and optionally additional secondary activities can be added (e.g., 3511 – Production of electricity, 3513 – Distribution of electricity, etc.).

Regulatory framework, specific approvals and control institutions

Operating in this field requires compliance with a strict legal framework, including the Electricity and Natural Gas Law no. 123/2012, as well as ANRE regulations on authorization and licensing of electricity producers from renewable sources. For production units with an installed capacity greater than 1 MW, it is necessary to obtain a production license issued by ANRE, which certifies compliance with technical, environmental and safety conditions. Moreover, an environmental permit from the Environmental Protection Agency (APM) is required as part of the environmental impact assessment (EIA) procedure or, for smaller projects, a declaration on own responsibility that no additional permits are needed. Other relevant institutions are the Ministry of Energy, the National Agency for Mineral Resources (if exploiting geothermal resources or biomass) and grid operators (Transelectrica, distribution operators) for connection to the national power system.

Tax management, ANAF audit risk and specific accounting

From a fiscal perspective, producers of energy from renewable sources are subject to the general regime of the Fiscal Code but benefit from specific facilities, such as income tax exemption for micro-enterprises if they meet the qualifying conditions, or the possibility to apply a reduced VAT rate (5%) for electricity supplies only under certain conditions (for example, if the energy is produced from renewable sources and supplied directly to household consumers – the cases are strictly regulated). In accounting, revenues from electricity sales are recorded based on invoices issued in the RO e-Factura system, and production costs include depreciation of the investment (solar panels, wind turbines), maintenance costs, land lease, etc. It is necessary to categorize the electricity produced (sold on the centralized market, directly to consumers, or self-consumed). ANAF may initiate a tax audit regarding the correctness of accounting for investment costs, subsidies received (e.g., green certificates, state aid scheme) and the calculation of the tax base for corporate income tax. It is recommended to keep supporting documents regarding production and deliveries, sales contracts, invoices and technical records to cope with potential inspections. Additionally, for companies that carry out both production and own consumption of energy, there is a risk of being treated as consumers from a fiscal standpoint, which may generate additional declaration and payment obligations for excise duties and taxes on electricity. Therefore, a careful analysis of the fiscal vector and the registration for VAT purposes (as a VAT payer, or applying the VAT on collection system) is crucial to avoid penalties.