4751

Authorisation procedure and Trade Register aspects for NACE 4751

Setting up a company that will carry out the activity of retail sale of textiles (NACE 4751) involves going through the standard registration steps with the National Trade Register Office (ONRC). The documentation includes the registration application, the constitutive act, proof of registered office (lease agreement, property right) and the sworn declaration according to Law 359/2004 regarding fulfilment of operating conditions. At the time of filing, NACE 4751 will be specified as the main activity. For retail trade, no prior approvals are required from the Trade Register, but it must be verified that the commercial space complies with local urban planning regulations.

If you intend to carry out related activities (e.g., tailoring or dry cleaning), secondary NACE codes must be registered, such as 4771 (retail sale of clothing articles) or 9601 (laundry and dry cleaning). Ensure that the constitutive documents correctly reflect the object of activity, including the possibility of conducting online commerce (if applicable), which additionally involves registration in the RO e-Factura system and declaration of bank accounts to the Tax Authority (ANAF).

Regulatory framework, specific permits and control institutions

The retail trade of textiles is subject to general regulations on consumer protection (GEO 21/1992) and product safety. Textile products must comply with labelling according to Regulation (EU) No 1007/2011 on textile fibre names. The main control institutions are the National Authority for Consumer Protection (ANPC) and, depending on the specifics, the Territorial Labour Inspectorate (ITM) for workplace safety standards.

No sanitary or environmental permits are required unless the space includes related activities such as storage of chemicals for textile treatment. In the case of selling bed linen or towels, regulations on biocides apply if treated products are marketed. Also, for online commerce, legislation on electronic commerce (Law 365/2002) and consumer information obligations must be respected.

Tax management, ANAF audit risk and specific accounting

From a tax perspective, retail sale of textiles falls under the standard VAT rate of 19%, except where reverse charge applies (not the case for direct sales to consumers). VAT registration is mandatory if turnover exceeds the threshold of 300,000 lei or upon incorporation if opted. The tax vector must be updated with the Trade Register and the Tax Authority for profit tax and local taxes (building, land, advertising).

Specific accounting includes management of textile inventories, which are perishable goods (seasonal fashion) and require proper valuation at acquisition cost or net realisable value. The ANAF audit risk is medium, especially in case of discrepancies between physical inventories and accounting records or non-declaration of cash sales revenue. We recommend using a fiscal cash register connected to the Tax Authority (ANAF) and daily reporting of receipts. For online sales, issuing invoices via RO e-Factura is mandatory for legal entities.

An important tax aspect: deduction of goods expenses occurs at the time of sale (cost of goods sold). Advertising, packaging and transport expenses are deductible if justified. We recommend keeping supporting documents for all transactions, including supply contracts, to avoid VAT adjustments during inspections. Also, rules on commercial margins and transfer pricing apply if textiles are imported from outside the EU.

For employees, obligations include correct calculation of social contributions and submission of D112 returns and the single return (for income from independent activities, if applicable). In case of using collaborators (PFA), it is recommended to have service contracts with withholding tax and to check the risk of reclassification as dependent employment.