4331

Authorization procedure and Trade Register aspects for CAEN 4331

Registration with the Trade Register (ONRC) for CAEN class 4331 (Plastering works) does not require special prior approvals, but it requires the correct definition of the main object of activity in the constitutive act. The standard establishment procedure applies: submitting the registration application, the constitutive act, and the affidavit under Law 359/2004 regarding the fulfillment of operating conditions. For LLCs, the minimum share capital is 1 RON; for PFAs or individual enterprises, the single declaration on estimated income is submitted to the Tax Authority (ANAF).

At registration, the fiscal vector is completed with CAEN code 4331. ONRC automatically transmits the data to ANAF, and the company receives the tax identification number and the registration certificate. No additional certificates from the Ministry of Development or other ministries are required, but it is recommended to verify local requirements regarding building permits if the works involve structural interventions. For PFAs, the income threshold for actual taxation is 300,000 RON; below this, one may opt for the flat-rate income tax if the locality has an approved norm for CAEN 4331.

Regulatory framework, specific approvals, and control institutions

The main relevant normative act is Law 10/1995 on quality in construction, which requires that plastering works be carried out by authorized natural or legal persons, depending on complexity. Although CAEN 4331 is not a strictly regulated activity (unlike electrical or gas installations), for works involving load-bearing structures or thermal insulation, checks may be requested from the State Inspectorate in Construction (ISC).

Control institutions include: ISC for the quality of works, the Labor Inspectorate (ITM) for occupational safety and health rules under Law 319/2006, and ANAF for tax control. No environmental permits are issued for plastering, except in cases of hazardous waste generation (paints, solvents), where Law 211/2011 on waste regime applies.

For execution, it is recommended to follow technical standards: C 15/2013 on interior plastering and C 20/2015 on exterior finishes. The lack of specific documents (reception minutes) may attract penalties from 5,000 to 20,000 RON under Law 10/1995.

Tax management, ANAF audit risk, and specific accounting

From a fiscal perspective, CAEN 4331 is subject to general rules of the Fiscal Code. Income tax for PFAs is calculated at a 10% rate after deducting expenses; for LLCs, profit tax is 16% (or 1% on turnover for micro-enterprises, if revenues are under 500,000 EUR). VAT is applied at the standard rate of 19% for plastering works, classifiable as service provision. The VAT exemption threshold is 300,000 RON for newly established taxable persons.

A specific fiscal component is the RO e-Factura system for B2B relationships: invoices issued to other legal entities must be transmitted in the national system. Non-compliance entails fines from 1,000 to 10,000 RON. Also, for cash payments, the cash limit is 5,000 RON/day; exceeding this triggers sanctions of 30% of the amount.

The audit risk with ANAF is medium to high, due to the specific nature of construction works, where underreporting of income or use of undeclared labor (under Law 151/2022 on social protection) is common. Strict records of employed personnel are required through REVISAL, employment contracts, and payment of social contributions. Deductible expenses include materials (plasterboard, metal profiles, adhesives), tools (troweling machines, ladders), transport, and subcontracting.

Specific accounting involves recording revenues based on the invoice issued upon completion of the work or by execution phases. It is recommended to use accounts 704 for service revenues, 4428 for non-deductible VAT at invoicing, and 411 customers. For subcontracting, accounts 401 suppliers. For PFAs, single-entry accounting applies, with the cash receipts and payments register. The cash conversion cycle requires monitoring of material inventories and settlements with beneficiaries.