3700

Authorization procedure and Trade Register aspects for NACE 3700

Setting up a company that will carry out the activity of collection and treatment of wastewater (NACE 3700) involves going through the standard formalities at the National Trade Register Office (ONRC), with specific mentions related to the object of activity and prior approvals. At registration, a declaration on own responsibility according to Law 359/2004 on fulfilling operating conditions is submitted, and for NACE 3700 it is mandatory to obtain the environmental opinion from the territorial Environmental Protection Agency (APM). Without this opinion, the Trade Register will not fully register the object of activity. Also, the company's articles of association must explicitly include the activities of collection, transport and treatment of wastewater, mentioning the installations and networks used.

For authorized natural persons or individual enterprises, the same conditions for prior authorization apply. At ONRC, the standard application form is completed, accompanied by proof of registered office, constitutional documents and, where applicable, the lease or concession contract for the land/treatment plants. We recommend consulting the ONRC Guide for NACE classes with environmental impact, as any omission regarding approvals leads to rejection of the file.

Regulatory framework, specific approvals and control institutions

The activity of wastewater collection and treatment is strictly regulated by Water Law no. 107/1996, Emergency Ordinance no. 195/2005 on environmental protection, and the technical norms issued by the Ministry of Environment. The operator must obtain the water management permit from the National Administration Romanian Waters (ANAR) – water directorates, as well as the environmental permit issued by the APM. Without these, operation is illegal and entails contraventional sanctions.

The main control institutions are the National Environmental Guard (for compliance with emissions and waste), ANAR (for compliance with the use of water resources) and the Public Health Directorates (for the quality of drinking water and treated water). Also, the Tax Authority (ANAF) can carry out fiscal controls regarding the correct declaration of income and VAT. Operators must keep strict records of collected water quantities, treatment parameters and final discharges, reporting periodically to the authorities.

Fiscal management, ANAF audit risk and specific accounting

From a fiscal point of view, companies with NACE 3700 are subject to the Fiscal Code and the standard VAT regime (19% rate for treatment services, except exemption cases). The fiscal vector is completed with obligations regarding income or profit tax, VAT, dividend tax and salary contributions. We recommend quarterly submission of D100 and D300 declarations, and for transactions with the state, the RO e-Factura system is used for invoices issued to local authorities and state-owned companies.

The risk of ANAF audit is high, as the activity involves subsidies, European funds and regulated tariffs. Companies that receive compensation for the public water and sewer service must keep separate accounting by cost center, according to ANRSC norms. During control, ANAF verifies the correct classification of investment expenses (amortization of treatment plants) and the deduction of VAT for equipment purchases. We recommend preparing a complete fiscal file, with justifications for each operation, and updating contracts with ANAF for advance payments. In case the company also provides domestic sewerage services, a reduced VAT rate of 5% applies for social housing, but only with prior approval from the Ministry of Finance.