4313

Authorization procedure and Trade Register aspects for CAEN 4313

Companies intending to carry out the activity of "Drilling and boring works for construction" (CAEN code 4313) must fulfill specific formalities at the National Trade Register Office (ONRC) upon incorporation or amendment. The registration application must clearly state the main object of activity, with the exact mention of CAEN code 4313. According to the provisions of Law 359/2004, in the absence of special conditions requiring prior authorization (if no works with major seismic risk or in protected sites are carried out), a declaration on one's own responsibility regarding the fulfillment of the legal operating conditions may be submitted. However, it is recommended to obtain the technical approvals beforehand to avoid subsequent blockages. In case temporary drilling for foundations or geotechnical studies is performed, a specific construction permit is not required, but urban planning and occupational safety rules must be observed. Standard documents at ONRC include: the constitutive act, proof of registered office (if the office coincides with the work site, this must be declared) and, for certain equipment, quality certificates or approvals.

Regulatory framework, specific approvals and control institutions

CAEN code 4313 is not usually subject to mandatory prior environmental approvals (except in cases where the works involve deep excavations affecting the water table). In situations where drilling is carried out in the vicinity of public networks (water, gas, electricity), the network operator must issue an access agreement. The main control institutions are the State Inspectorate in Construction (ISC) and the Territorial Labor Inspectorate (ITM) for compliance with safety rules for excavations and work at height or in confined spaces. If drilling rigs are registered, the provisions regarding road traffic and periodic technical inspection (ITP) apply. Also, the National Authority for Consumer Protection may intervene in case of defective services. From a statistical classification point of view, this activity is distinguished from code 4312 (site preparation) and 4311 (demolition), being specific to diamond drilling, auger drilling, coring, etc.

Tax management, ANAF audit risk and specific accounting

For taxpayers carrying out activity CAEN 4313, the classification into the category of income tax or profit tax is made according to the Fiscal Code. Legal entities liable for profit tax must apply the standard declaration and payment system, while micro-enterprises may benefit from the reduced tax rate (1% or 3%), as long as income from service provision does not exceed the threshold and there is no income from other sources that would exclude the regime. The ANAF audit risk is medium, given that invoices to beneficiaries (real estate developers, construction companies) are often for large amounts and may be subject to cross-checking through the RO e-Factura and e-Transport systems. The use of electronic invoicing is mandatory for B2C and B2B relations if the beneficiary is a legal entity.

Specific accounting includes categorizing works as "work in progress" (account 331) until final acceptance, with revenue recognition according to the stage of completion (percentage of completion method). Direct expenses (materials, labor, depreciation of equipment) are recorded in separate analytical accounts. Value Added Tax (VAT) is applied at the standard rate (19%), without special exemptions. Authorized natural persons (PFA) providing such services must register with ANAF and complete the single declaration. Consultation with a chartered accountant is recommended for the correct treatment of material inventories (piles, pipes, drilling mud) and the recording of equipment as depreciable assets.

Non-compliance with the obligation to register as a VAT payer upon exceeding the threshold of 300,000 lei (respectively 88,500 euros) attracts penalties and setting of additional taxes following a tax audit. Also, for employees performing drilling works, specific health and safety at work (SSM) insurance is required, including the provision of personal protective equipment (helmets, boots, gloves) and periodic training. In case of subcontracting part of the works, the contract must clearly allocate risks and responsibilities regarding salary taxes and social contributions, in order to avoid fiscal solidarity.