4299

Authorization procedure and Trade Register aspects for CAEN 4299

CAEN code 4299 covers 'Construction works of other engineering projects n.e.c.', including the construction of industrial installations, heavy metal structures, railway or port infrastructure, stadiums, silos, dams, etc. When establishing companies whose main activity is this code, it is mandatory to register with the Trade Register (ONRC) a declaration on own responsibility according to Law 359/2004. In practice, the founders must clearly specify the main object of activity and, where appropriate, several secondary objects. Although CAEN 4299 is not a 'restricted' code (unlike those requiring authorizations from the Ministry of Transport or ANPC), it is mandatory to obtain building permits issued by local authorities, based on the Urbanism Certificate. After obtaining registration, the company must register with the Trade Register with the declared registered office and, if it will have work points (construction sites), it must declare them within 30 days of starting the activity. Also, at the time of registration, the mention regarding the minimum share capital is usually requested, and in case of association with individuals or legal entities, compatibility is verified.

Regulatory framework, specific permits and control institutions

For CAEN 4299, the main regulations are Law 50/1991 on authorizing the execution of construction works and Law 10/1995 on quality in construction. Companies executing complex engineering projects (e.g., bridges, tunnels, load-bearing structures) must hold a building permit issued by the mayor's office, and the works are subject to verification by the State Inspectorate in Construction (ISC). If hazardous materials are handled or high-risk infrastructure is involved, permits from ISU, Environmental Guard or ANRE may be required. In addition, activities involving welding or manufacturing of metal structures require compliance with SR EN ISO standards and possession of qualification certificates for technical personnel. Companies performing construction works for third parties must be registered in the Electronic Register of Construction Operators (REOC) and meet classification conditions by categories (from C1 to C5) depending on the value and complexity of projects. Labor control is carried out by ITM, and for worker safety and health, Law 319/2006 applies.

Tax management, ANAF audit risk and specific accounting

From a fiscal perspective, companies operating under CAEN 4299 are subject to corporate income tax on income from works, with the possibility of applying the micro-enterprise taxation system if they fall within the threshold. Invoicing is usually based on execution contracts, and the Tax Authority (ANAF) monitors the correct application of VAT (reverse charge for subcontractors, according to the RO e-Factura system). Accounting must reflect each project separately, tracking direct costs (materials, labor, machinery) and indirect costs (overheads). For revenue recognition, the accounting standard applies: for long-term contracts, the percentage of completion method is used, and for completed works, invoices are issued as works are delivered. The risk of ANAF audit is higher for companies that declare consistent losses in the first years, have major differences between book and physical inventories, or show discrepancies between tax returns and purchase documents. Also, purchases of expensive machinery are monitored to prevent tax evasion. To minimize risks, it is recommended to prepare annual financial statements correctly, record all operations through the electronic cash register (if collecting from individuals) and comply with deadlines for submitting declarations to ANAF (Declarations 100, 300, 394, etc.). Last but not least, it is necessary to first obtain the permit from the State Inspectorate in Construction and the fire safety authorization, if applicable.