4321

Authorization procedure and Trade Register aspects for CAEN 4321

To set up a company with the main activity 'Electrical installation works' (CAEN 4321), the process starts at the Trade Register (ONRC) by submitting the Registration Application (for SRL, PFA, II). When completing the activity objects, the exact text is specified: '4321 - Electrical installation works'. The affidavit according to Law 359/2004 certifies that the applicant does not have the obligation to obtain prior authorizations from ONRC, but this does not exempt from permits related to constructions or professional qualifications. For the registered office, a commodatum or lease contract is required, and for the construction field, an address that allows the storage of electrical materials is recommended. Invoicing of works is done according to the RO e-Factura system, mandatory for B2B transactions since 2024.

Regulatory framework, specific permits and control institutions

The field of electrical installations is strictly regulated by Law 50/1991 on the authorization of construction works, Law 10/1995 on quality in construction and technical regulations (normative I7/2011). The contractor must be certified by ISCIR or classified by the State Inspectorate in Construction (ISC) for categories of electrical works. Technical personnel (team leader) must hold a certified electrician qualification (ANRE). The main control institutions are: ISC (quality), ITM (work safety, training records), ANAF (fiscal audit). The building permit for connection works is obtained from the municipality, and for connections to the public network, the approval of the energy supplier (Enel, Electrica) is required. Contracts with beneficiaries must clearly specify the execution stages and the warranty of the work, according to civil law. Non-compliance with I7/2011 norms entails penalties up to 50,000 lei and work stoppage. Authorized natural persons must comply with the same certification requirements, and for works exceeding 100,000 lei, professional insurance is also required.

Fiscal management, ANAF audit risk and specific accounting

From a fiscal perspective, income from electrical works can be taxed at 16% (real system) or 1% (standard income for PFA, if gross income below 25,000 euros and does not exceed 3 employees). Income tax and social contributions (CAS, CASS) are declared through the Single Declaration (for PFA/II) or Declaration 100/300 for SRL. VAT applies at 19%, and construction works benefit from reverse charge VAT (art 331 of the Fiscal Code) if invoiced between taxable persons; otherwise, normal VAT applies. The fiscal vector is established at company registration: option for VAT on collection (if turnover below 4,500,000 lei). Specific accounting includes management of electrical materials (cables, fuses) as stocks, and work in progress at the end of the month is valued at cost. Transport costs to the site are deducted based on accompanying waybill. The risk of ANAF audit is high due to reverse charge VAT, which requires checking the validity of the client's VAT code and the correct issuance of e-Factura invoices with reverse charge VAT code. It is recommended to archive contracts, reception minutes and material sheets. For PFAs, a frequent mistake is not registering as a VAT payer when exceeding the threshold of 300,000 lei. In case of an inspection, ANAF requests the list of clients and justification of deliveries; for each contract over 10,000 lei, it is recommended to prepare a detailed estimate and work order. Non-compliance with the obligation to use e-Factura for transactions with economic operators leads to fines of 5,000-8,000 lei.