4323

Authorisation Procedure and Trade Register Aspects for CAEN 4323

For setting up a company that carries out insulation works (CAEN 4323), the first step is to check the availability of the company name at the Trade Register (ONRC) and draw up the constitutive documents. When drafting the articles of association, the main object of activity must be 'Insulation works' under CAEN code 4323. It is recommended to also include related secondary activities, such as 4120 (Construction of buildings) or 4399 (Other special construction works), without causing confusion with the main field.

The registration application is submitted to the Trade Register (ONRC) via the online portal or at the counter, accompanied by the affidavit under Law 359/2004. For this CAEN class, no prior operating permits are required, but it is mandatory to obtain a building permit issued by the local authorities for each work executed. Also, the company must have appropriate technical equipment and qualified personnel, and during the ONRC inspection, proof of professional qualifications (professional certificates) may be requested.

Registration costs include the registration fee, publication in the Official Gazette and the Trade Register fee (approximately 350-500 RON). The procedure duration is 2-5 working days if the documentation is complete. Subsequently, fiscal registration with the Tax Authority (ANAF) and submission of the fiscal registration statement (Form 070) is required to obtain the unique registration code.

Regulatory Framework, Specific Permits and Control Institutions

The activity of thermal, waterproofing or sound-absorbing insulation is carried out under Law 50/1991 on the authorisation of construction works and specific technical standards (e.g., the Normative on the design and execution of thermal insulations – C107/2005). For works involving hazardous materials (polyurethane foams, mineral wool with binders), the provisions of Government Decision 355/2007 on fire safety apply, and for exterior insulation on high-rise buildings, the approval of the Inspectorate for Emergency Situations (ISU) is required.

The main control institutions are: the State Inspectorate in Construction (ISC) for verifying compliance with technical norms, the Public Health Directorate (DSP) for hygiene conditions during material application, and the Environmental Guard (GNM) for managing construction waste. Contracts with clients must include clauses on the work guarantee (minimum 2 years under the Civil Code) and obligations regarding execution according to the authorised project.

A special license is not required for CAEN 4323, but for performing insulation work within electrical or thermal installations, certification from the National Regulatory Authority for Energy (ANRE) is required if acting on energy components. Also, hiring personnel without legal forms attracts severe penalties, making it mandatory to conclude individual employment contracts in accordance with the Labour Code.

Fiscal Management, ANAF Audit Risk and Specific Accounting

From a fiscal perspective, companies with CAEN 4323 must apply the VAT regime from setup if they exceed the exemption threshold (300,000 RON annual turnover). We recommend opting for VAT on collection in case of works with delayed payment, to avoid paying VAT to the budget before collection. Profit tax is calculated quarterly, and in the case of micro-enterprises, one may opt for income tax (1% or 3% as applicable).

VAT returns must be submitted monthly or quarterly, and for invoicing works, the RO e-Factura system is mandatory from 1 January 2023. ANAF may trigger a fiscal audit based on indications of understatement of income (undeclared works) or overstatement of expenses (fictitious materials). To minimise risk, keeping supporting documents is required: time sheets, route sheets, service contracts, material input-output notes.

Specific accounting reflects the production cycle: recording consumption for each site (account 601 materials expenses, account 641 salary expenses), including labour and machinery in production cost. At the end of the month, work-in-progress is inventoried (account 332) and costs are adjusted using production accounts. For contracts with execution longer than one year, IAS 11 (revenue recognition based on percentage of completion) applies.

In case of subcontracting part of the works to other companies, a 2% withholding tax is retained (Declaration 100) and the subcontractor's status is verified. Companies that deliver materials with installation must have CAEN 4323 as the main code, and invoicing is done with a single VAT rate (19% or 9% depending on the type of work – for example, insulation for social housing may benefit from the reduced rate).

We recommend that responsible persons periodically check the fiscal vector, submit the Single Declaration on estimated income and maintain a transparent relationship with ANAF to avoid sanctions. Implementing a rigorous internal control system, including checking client creditworthiness, reduces the risk of insolvency and increases the company's financial stability.