4350

Authorization procedure and Trade Register aspects for CAEN 4350

For the registration with the Trade Register (ONRC) of the activity CAEN 4350 - Special construction works for civil engineering projects, the applicant submits the standard application together with the constitutive act. CAEN code 4350 falls under group 43 'Special construction works', and when completing the Affidavit according to Law 359/2004, it is stated that no prior operating authorizations are requested for the registered office. However, for the actual execution of the works, specific technical approvals from authorities such as the National Agency for Mineral Resources or local town halls are required. The documentation submitted to the Trade Register must include CAEN code 4350 as the main or secondary activity, and the administrator must have the legal capacity to bind the company.

Regulatory framework, specific approvals, and control institutions

Companies carrying out construction works for civil engineering projects (e.g., tunnels, bridges, dams, deep foundation works, or ground consolidation) are subject to the provisions of Law 50/1991 on authorizing the execution of constructions and Law 10/1995 on quality in construction. Activities specific to CAEN 4350 generally involve works requiring a building permit issued by the town hall. Additionally, for works involving the subsoil or geotechnically risky land, approvals from ANRM or environmental authorities may be necessary. Companies must have a certified technical expert in the field (according to GD 925/1995). Compliance with quality and occupational safety standards is ensured by the Territorial Labor Inspectorate and the Tax Authority (ANAF) regarding the correct declaration of income.

Tax management, ANAF audit risk, and specific accounting

From a fiscal perspective, income from civil engineering projects is declared to the Tax Authority (ANAF) based on execution contracts. It is recommended to correctly classify operations under the Fiscal Code, especially for VAT: the standard rate of 19% applies to construction works, except for reverse charge cases for subcontractors, according to Art. 331 of the Fiscal Code. Audit risk may arise in determining the VAT chargeability point (at invoice issuance or collection, depending on the option for VAT on collection). It is mandatory to issue invoices through the RO e-Factura system for B2G relationships and, after July 1, 2024, for all B2B operations.

Specific accounting includes recording work-in-progress costs (account 331), recognizing revenue based on the stage of completion (percentage of completion method), and properly managing material inventories. It is also essential to correctly declare the fiscal vector at ANAF to determine due taxes (profit tax or micro-enterprise income tax, as applicable). For companies exceeding the 500,000 lei threshold, the 16% profit tax applies. No specific fiscal facilities apply, but expenses for machinery and depreciation may be deducted within legal limits.