4342

Authorization procedure and Trade Register aspects for CAEN 4342

For registration with the Trade Register (ONRC) of the activity Other special construction works for buildings (class 4342), the standard registration procedure or the registration of the mention regarding the main object of activity, accompanied by the corresponding CAEN code, applies. When submitting the file, the standard application form, the constitutive act (SA, SRL, PFA, etc.) and the affidavit according to Law 359/2004 regarding the fulfillment of operating conditions are completed. It is mandatory to explicitly mention the secondary objects of activity (e.g., 4312 for demolition works, 4321 for electrical installations, 4399 for other special works). ONRC does not require prior endorsements from other institutions at registration, but the economic operator must obtain specific authorizations before starting the actual works. For authorized natural persons or individual enterprises, the same CAEN code applies, but with verification of the fiscal vector at the Tax Authority (ANAF) after registration. The average processing time is 1-3 working days, provided the application is submitted electronically through the ONRC portal.

Regulatory framework, specific endorsements and control institutions

The activity of special construction works for buildings falls under Law no. 50/1991 regarding the authorization of construction works, as republished, and its methodological norms. For works related to code 4342 (e.g., scaffolding assembly, insulation works, prefabricated element assembly, chimney, roof truss, roofing works, etc.), obtaining a building permit from the competent mayor's office is required if the work involves structural interventions. Additionally, according to Law no. 10/1995 on quality in construction, certification of professional qualifications of technical personnel (technical superintendent, site manager) as well as verification of technical documentation by certified designers and verifiers is mandatory. The relevant control institutions are the State Inspectorate in Construction (ISC), ANAF for fiscal matters, and ITM for occupational safety. No prior environmental endorsements are required, except in cases where the works generate hazardous waste (asbestos, etc.), in which case Law no. 211/2011 on waste regime applies.

Fiscal management, ANAF audit risk and specific accounting

From a fiscal perspective, income from activity 4342 qualifies as income from independent activities (for PFA) or income subject to corporate income tax (for SRL, SA). The VAT regime is standard (19% rate), with the possibility of applying the VAT on collection system if the turnover does not exceed RON 4,500,000. Taxpayers exceeding the threshold of RON 300,000 in the previous year must register in the RO e-Factura system and submit electronic invoices within 5 days. A major ANAF audit risk lies in the incorrect treatment of expenses for construction materials (depreciation vs. direct expense) and subcontracting. It is recommended to separately record works performed directly from those subcontracted to avoid reclassification of income as intermediation. Also, frequent checks concern the correct recording of advances received from clients, which are taxable upon receipt. In accounting, the General Chart of Accounts applies, using accounts 701 (Revenue from sale of finished products) or 704 (Revenue from works executed and services rendered), depending on the nature of the contract. Recommendations: maintain an updated site register, written contracts for each work, electronic invoices issued on time, and periodic verification of the fiscal vector to avoid additional payments. For taxpayers operating as PFA, the obligation to declare annual income through the Single Declaration and pay social contributions (CAS and CASS) at the chosen net income level applies.