4341

Authorization procedure and Trade Register aspects for CAEN 4341

Opening a company with the activity object CAEN 4341 involves following a strict process at the Trade Register (ONRC). The registration application is submitted through the ONRC computer system or physically, with the administrator's electronic signature. The constitutive acts must clearly specify that the main object of activity is "Works for roofing, roof frames and terraces on buildings", code CAEN 4341, with the mention that it carries out new construction, repair and maintenance works.

In the case of associations, it is recommended to include clauses regarding the contribution of specific equipment and machinery (scaffolding, welding machines, waterproofing installations). Upon registration, a sworn declaration according to Law 359/2004 is submitted for fulfilling the operating conditions. For roofing and terrace activity, classification at least in group 6 of authorization according to Law 10/1995 on quality in construction is required.

The economic operator must obtain the registration certificate in the Trade Register with CAEN 4341 as the main object, and for bidding on public works, registration in the Electronic Register of Economic Operators (REO) within ANAP is mandatory.

Regulatory framework, specific approvals and control institutions

The field covered by CAEN 4341 is regulated by Law 10/1995 on quality in construction, Law 50/1991 on authorizing the execution of construction works, and the Fire Safety Regulation. For the execution of roofing works (sheet metal, tiles, flashings) and terraces (waterproofing, thermal insulation, green roofs), the company must hold an operating permit issued by the Territorial Inspectorate in Construction (ISC) after verifying the installations and technical personnel.

Personnel performing work at height must have an ISC attestation for construction categories, and for works with fire risk (e.g., welding waterproofing with flame), a fire safety permit is requested from the Inspectorate for Emergency Situations (ISU). Also, for handling insulating materials (mineral wool, polyurethane foams), labor protection rules according to HG 1048/2006 apply.

Periodic control is ensured by ISC, ISU and the Labor Inspectorate (ITM) for verifying compliance with occupational safety and health norms. For new construction works, a building permit issued by the town hall is required, based on the technical project and fire safety documentation.

Tax management, ANAF audit risk and specific accounting

From a fiscal point of view, companies in CAEN 4341 apply the normal VAT regime (standard rate 19%) for construction works. In the case of subcontracting, reverse charge applies according to art. 291 para. (3) lit. a) of the Fiscal Code for construction-assembly services to beneficiaries registered for VAT purposes. Invoicing is done through the RO e-Factura system, mandatory for B2B relations as of January 1, 2024.

Corporate income tax is calculated at the standard rate of 16%, with the possibility of applying the specific taxation system (income norm) for taxpayers with revenues under EUR 500,000 annually, but the condition is that the company has no employees with individual employment contracts except the administrator. For micro-enterprises (turnover under EUR 500,000 and revenues from consultancy or management under 20%), the micro-enterprise income tax is 1% (3% for corporate income tax payers).

Execution contracts must include guarantee clauses (minimum 10 years for construction works according to Law 10/1995) and penalty clauses for delays. In accounting, expenses with materials (tiles, sheets, waterproofing membranes, battens) are recorded based on consumption notes, and labor is entered separately. For works under general contracting, revenues from executed works are accounted based on work progress reports, accompanied by reception minutes.

The risk of ANAF audit is high in this field, especially for verifying service contracts with individuals (PFA) to avoid undeclared employment. Also, costs with subcontractors must be justified with contracts and invoices registered in the e-Factura system. ANAF frequently checks the classification of works as investments (capitalization) versus repairs (current expenses). The executive director of the General Anti-Fraud Directorate has established selection criteria for taxpayers with irregularities in the construction field, including for CAEN 4341, such as large differences between reported revenues and those declared by beneficiaries.