4312

Authorization procedure and Trade Register aspects for CAEN 4312

Setting up a company that carries out site preparation activities (excavations, leveling, clearing) requires registration with the Trade Register (ONRC) with the main activity object of CAEN code 4312. When submitting the application, a sworn declaration is completed in accordance with Law 359/2004 on simplifying registration, whereby the associate confirms compliance with the operating conditions. No prior approvals are required for registration, but they will be needed later.

For authorized natural persons (PFA), individual or family enterprises, CAEN code 4312 can be registered as a secondary object, subject to notification to the Trade Register. It is mandatory to check compatibility with other CAEN codes in the same field (e.g., 4311 – Demolition, 4329 – Other construction works). Upon cessation of the activity, a specific form is submitted to the Trade Register for the deletion of the code.

Regulatory framework, specific approvals, and control institutions

Site preparation activities are regulated by Law 50/1991 on authorizing the execution of construction works and Law 319/2006 on occupational safety and health. Depending on the nature of the works (e.g., excavations in areas with utilities), approvals may be required from: the municipality, environmental authorities (APM), network administrators (electricity, water, gas). For the use of heavy machinery, periodic technical inspection (ITP) and operating authorization for pressure or dangerous equipment are mandatory.

The Labor Inspectorate and the Territorial Labor Inspectorate (ITM) control compliance with labor protection rules, including staff training and the provision of protective equipment. The National Environmental Guard checks the management of resulting waste (soil, vegetation debris) and compliance with the conditions of regulatory acts. Companies must have a file containing all approvals and present it upon request from the authorities.

Tax management, ANAF audit risk, and specific accounting

From a fiscal perspective, revenues from CAEN 4312 are classified as income from independent activities (PFA/II) or taxable profit (companies). For companies with a turnover under EUR 1,000,000, the micro-enterprise income tax system (3% on revenue, 1% for revenue under EUR 600,000) can be applied, with the obligation to submit the single declaration and estimate the tax. For PFA, the tax is calculated based on the income norm or single-entry accounting, with payment of social contributions (CAS, CASS) to the Tax Authority (ANAF).

Invoicing is done through the RO e-Factura system for B2B and B2G relationships, and VAT returns are submitted monthly or quarterly, depending on the threshold. Deductible expenses include: depreciation of machinery (classified under transport means or equipment), fuel, maintenance, insurance, rents, salaries. It is recommended to keep separate records for each site/contract in order to support the tax base in case of an ANAF audit. Audit risks are high in case of large discrepancies between declared revenues and the volume of works, or failure to record revenues from cash service provision. The tax obligation is completed with the fiscal vector at the Virtual Private Space Registry (SPV) and the annual submission of financial statements to the Trade Register.