4684

Authorization procedure and Trade Register aspects for CAEN 4684

For registering CAEN code 4684 with the Trade Register (ONRC), you must complete the application for registration in the trade register (standard form) with a clear mention of the main object of activity: 'Wholesale trade of hardware equipment and supplies for plumbing and heating installations'. No prior approvals from ministries are required, but it is mandatory to submit a sworn statement according to Law 359/2004 regarding the fulfillment of operating conditions. At the registered office, you must demonstrate possession of a storage space (warehouse, showroom) in compliance with local urban planning regulations. For limited liability companies (SRL), the minimum share capital is 1 RON, but recommended above 200 RON for substantial commercial operations. Shareholders and administrators must have no tax or criminal record. The registration term at ONRC is 3-10 working days, after which you obtain the registration certificate, unique registration code (CUI), and excerpt from the Trade Register.

Regulatory framework, specific approvals, and control institutions

CAEN code 4684 does not require environmental or sanitary-veterinary approvals, as it does not involve production or handling of hazardous substances. However, trade in heating equipment (boilers, water heaters) may fall under legislation on natural gas and pressure installations. Distribution of natural gas boilers requires compliance with ISCIR norms for pressure vessels and ANRE regulations on marketing of energy equipment. For plumbing supplies, no special approvals are needed, but materials (pipes, fittings) must comply with SR EN standards. Relevant control institutions are the Tax Authority (ANAF) (for taxation), ISCIR (for pressure equipment), ANPC (consumer protection), and ITM (working conditions). For imports, standard customs procedures apply, and CE certificates of conformity are mandatory. ANAF inspections focus on the legality of invoices and correctness of income declaration.

Tax management, ANAF audit risk, and specific accounting

From a tax perspective, wholesale trade activities are subject to corporate income tax of 16% (or micro-enterprise income tax, if conditions are met – turnover under EUR 500,000 and at least one employee). Value Added Tax (VAT) applies at the standard rate of 19% for most products, except for biomass-based heating equipment or heat pumps which may benefit from the reduced rate of 5% under legal conditions. Registration in the RO e-Factura system is mandatory for invoices issued to legal entities, and monthly reporting of invoices via e-Factura is mandatory from 2024. The audit risk from ANAF is medium to high, as this is a transactional activity with variable commercial margins. Accountants must track correct inventory recording using FIFO or weighted average cost methods. Typical supporting documents include purchase invoices, delivery notes, and distribution contracts. It is recommended to archive conformity certificates for each batch of imported goods. Support from a tax consultant is useful for optimizing taxation and avoiding VAT adjustments during inventory.