4644

Authorization procedure and Trade Register aspects for CAEN 4644

Registration with the Trade Register (ONRC) of an LLC with main business activity CAEN 4644 (Wholesale trade of ceramic products, glassware and cleaning products) requires compliance with standard formalities under Law no. 265/2022 and GEO no. 49/2022. The founder submits a registration application, a sworn declaration under Law 359/2004 (regarding the eligibility of the registered office) and the articles of incorporation. No prior mandatory approvals are required at incorporation if the registered office is suitable for office use. If the company owns a warehouse for storing goods, a fire safety authorization (ISU) may be required during the operational authorization phase (after registration). At registration, CAEN code 4644 will be selected as the main activity; secondary activities within the same class may be added (e.g., 4643 for electronic appliances, if applicable). The administrator must not be under legal prohibition (personal bankruptcy, criminal tax convictions). The ONRC fee is 49 lei for standard registration, plus 100 lei for publication in the Official Gazette. The Trade Register approval is obtained immediately, but the operating authorization (including DSVSA approvals for warehouses of cleaning products falling under food regime – if biocidal substances are marketed) is requested subsequently, according to specific legislation. The legal processing time is 3-5 working days, but can be reduced to 1 day through the online procedure.

Regulatory framework, specific approvals and control institutions

Wholesale trade of ceramics, glass and cleaning products is not a strictly regulated activity, but it is subject to general rules on product safety (Law no. 245/2004 on general product safety) and REACh regulations (EC Regulation no. 1907/2006) for chemical substances contained in cleaning products. For cleaning products (detergents, cleaning solutions), Regulation (EU) no. 648/2004 on detergents and Regulation (EC) no. 1272/2008 on classification, labelling and packaging of substances (CLP) apply. It is mandatory to hold Safety Data Sheets (SDS) for each hazardous product and ensure label compliance. Control institutions include: ANPC (National Authority for Consumer Protection) for labelling and warranty issues, the National Environmental Guard (if packaging waste or hazardous chemicals are managed) and the Territorial Labour Inspectorate (for working conditions in the warehouse). If substances classified as hazardous are handled, an environmental permit (GD 1062/2020) and notification to the Labour Inspectorate regarding hazardous substances are required. For storage, an ISU authorization (functional risk class) is necessary. Legal recommendation: verify whether cleaning products contain biocides, in which case Regulation (EU) no. 528/2012 applies, and marketing is only allowed if they hold a marketing authorization issued by the European Commission or the national authority (Ministry of Health).

Tax management, ANAF audit risk and specific accounting

From a fiscal perspective, CAEN 4644 falls under wholesale trade, subject to the standard VAT regime (standard rate 19%). The obligation to register for VAT purposes arises when the turnover exceeds the threshold of 300,000 lei in the last 12 months, but voluntary registration is recommended to benefit from VAT deduction on purchases (goods and logistics services). The RO e-Factura system is mandatory from 2024 for all B2B transactions, and starting 1 January 2025, e-VAT (pre-filled VAT return) will require monthly reporting. Accounting must reflect distinct inventories of goods, their valuation at purchase cost (FIFO or weighted average cost method), and impairment adjustments. Storage commissions or transport costs are recorded as operating expenses. For cleaning products, excise duties apply if they contain ethyl alcohol (e.g., solvents). Corporate income tax is 16%, and for micro-enterprises, 1% or 3% applies for revenues under 500,000 euro. A major ANAF audit risk is the transfer of goods without supporting documents (waybills) between the registered office and the warehouse – all movements must be accompanied by invoices or waybills. Also, ANAF verifies the reality of inventories during the annual inventory count. There is a risk of fiscal reclassification of income if ancillary services (installation, consultancy) are provided without separate invoicing. Recommendation: implement an ERP system that issues e-Invoices, generate monthly SAF-T reports, and keep transport documents for 10 years.