4661

Authorization procedure and Trade Registry aspects for CAEN 4661

Establishing a company with the main activity code CAEN 4661 – “Wholesale of agricultural machinery, equipment and supplies” – involves going through the standard registration steps at the Trade Register (ONRC), with specific mentions regarding the field. When submitting the registration application, a sworn declaration according to Law 359/2004 is completed, through which the administrator attests to the fulfillment of the legal operating conditions. No prior operating authorizations are required at the ONRC level, however, from the point of view of fire safety and labor protection, the storage space must comply with applicable technical norms. Also, at registration, the registered office, work points and the minimum legal share capital (for an SRL, 1 RON) are established. For trade in heavy agricultural machinery, it is recommended to check the relevant secondary CAEN codes (e.g., 4531 – Wholesale of parts and accessories for motor vehicles, if also supplying road tractors).

Regulatory framework, specific permits and control institutions

The wholesale marketing of agricultural machinery is not subject to special operating authorizations issued by the Ministry of Agriculture, however, machinery imported from outside the EU must meet safety requirements according to Directive 2006/42/EC (CE marking). As a distributor, you will be responsible for verifying the conformity of equipment placed on the market, and deliveries to farmers generate the obligation to issue invoices in the RO e-Factura system for B2B operations. From a control point of view, the Tax Authority (ANAF) conducts checks on the correctness of income and VAT declarations, and the Labor Inspectorate and the Emergency Situations Inspectorate (ISU) may inspect warehouses. For generated waste (packaging, oils), the provisions of GEO 195/2005 on environmental protection apply. No approval from the Ministry of Agriculture is required, but consultation of legislation on phytosanitary products is recommended if supplies include chemical substances.

Tax management, ANAF audit risk and specific accounting

Economic operators in CAEN 4661 are liable for corporate income tax (16%) or micro-enterprise income tax (1% if turnover < 500,000 euros and has at least 1 employee). VAT applies at the standard rate (19%) for deliveries of agricultural machinery, with the possibility of collection through monthly/quarterly settlement. For intra-Community acquisitions of machinery, a recapitulative statement (D390) is submitted monthly or quarterly, and received invoices must be recorded in the RO e-Factura system. The risk of ANAF audit is medium to high, as high margins and frequent cash transactions attract inspectors' attention; it is recommended to keep supporting documents for each transaction (contracts, delivery notes, transport). The accounting of machinery stocks is done at cost of acquisition, and for spare parts, evaluation at weighted average cost applies. Warranties offered to customers are recorded as provisions, and post-sale service generates separate revenues. Do not forget the obligation to submit annual financial statements to the ONRC and tax returns to ANAF, including D112 for employees.