3521

Authorisation procedure and Trade Register aspects for NACE 3521

Setting up a company whose main object of activity is 'Production of gas' (NACE 3521) involves registration at the Trade Register (ONRC) with standard documentation plus specific approvals. Upon registration, a declaration on one's own responsibility according to Law 359/2004 must be submitted stating that the company meets the operating conditions. For gas production activities, whether natural gas, biogas or industrial gases (hydrogen, oxygen, etc.), an occupational health and safety authorisation, an ISU approval and an environmental permit from the Environmental Protection Agency (APM) are mandatory. Also, if the activity involves distribution through networks, ANRE (National Regulatory Authority for Energy) regulations apply. At the ONRC, the NACE code 3521 will be registered as the main object, and in the case of natural gas production, the relevant NACE codes for extraction (0610) are also added. Obtaining licences from ANRE for natural gas production, which also requires approvals from the National Agency for Mineral Resources, cannot be omitted.

Regulatory framework, specific approvals and control institutions

Gas production (NACE 3521) is strictly regulated by several normative acts and institutions. The main applicable laws are the Gas Law no. 123/2012 (for natural gas), Law 211/2011 on biogas, as well as transposed European directives on industrial emissions. Control institutions include: Environmental Guard, ISCIR (for pressure installations), ITM (Labour Inspection), ANRE for distribution networks and ANAF through the Fiscal Control Directorate. The specific approvals required are: building permit for the production facilities, ISU (Fire Brigade) approval for fire or explosion risk, sanitary approval from the Public Health Directorate, and fire safety authorisation. For industrial gases (oxygen, acetylene), regulations on dangerous substances also apply – Government Decision 1052/2006. Lack of any approval leads to suspension of activity and fines from RON 10,000 to 50,000 according to Government Ordinance 2/2001. It is crucial to obtain all authorisations before starting production; ANAF and the Environmental Guard carry out unannounced checks, and irregularities lead to sanctions.

Tax management, ANAF audit risk and specific accounting

From a fiscal perspective, NACE 3521 entails specific obligations. Upon incorporation, a tax registration declaration (vector fiscal) is filed with ANAF. The company is liable to corporate income tax (16%) or micro-enterprise income tax (1% or 3%), if the turnover conditions are met. In natural gas production, harmonised excise duties apply (Directive 2003/96/EC), and biogas may benefit from tax facilities if used as renewable fuel. VAT is 19%, but for natural gas supplied to the population a reduced rate of 5% applies (Law 227/2015, art. 291). ANAF has a high audit risk for this NACE code due to the specificity of the products and the high values involved. Specific accounting includes the record of gas stocks (physically difficult), the use of weight balances or flow meters, and the application of cost standards. The use of the RO e-Factura system for invoicing clients and compliance with deadlines for monthly returns (300, 390, 394) and annual returns (101, 100) is recommended. Due to price volatility, stock adjustments and provisions for environmental risks must be correctly reflected. Errors in accounting for excise duties trigger extensive tax inspections with a 5-year limitation period. Any company carrying out gas production activities must hire an authorised accountant with experience in the energy industry to minimise the risk of penalties.