4753

Authorization procedure and Trade Register aspects for CAEN 4753

Setting up a company with the main activity 4753 - Retail sale of carpets, rugs, wallpapers and other floor coverings involves going through the standard registration steps at the Trade Register (ONRC). CAEN code 4753 is not exempt from prior name control. The registration application is submitted together with the constitutive documents, proof of registered office and the affidavit according to Law 359/2004 regarding the fulfillment of operating conditions. If the registered office coincides with the administrator's domicile, the consent of the owner or the homeowners' association must be obtained, as the case may be. No prior approvals from specialized institutions are required at the time of registration, but actual operation is conditioned by compliance with consumer protection rules, fire safety rules and the operating permit issued by the local mayor's office. For authorized natural persons (PFA), individual enterprises (II) or legal entities, the procedure is similar, with the specificity that for PFA/II it is based on Government Emergency Ordinance 44/2008. After registration, the obligation to file annual financial statements and to notify changes of registration data (change of registered office, change of administrator) remains constant.

Regulatory framework, specific approvals and control institutions

The activity of retail trade of finishing materials (carpets, wallpapers) falls under Government Ordinance 99/2000 on the commercialization of products. Although CAEN code 4753 does not imply a strict approval regime, companies must comply with the rules of ANPC (National Authority for Consumer Protection) regarding product labeling, technical specifications and declarations of conformity. In the case of imports from outside the EU, customs rules and certification of origin apply. Also, products must be accompanied by technical data sheets on the composition of materials, in accordance with Regulation (EU) 305/2011 on construction products. Periodic controls are carried out by ITM (Labor Inspection) for compliance with safety rules in commercial spaces, and by ISU (Emergency Situations Inspectorate) for fire safety authorization. In case the space stores large quantities of flammable materials, ISU approval must be obtained.

Tax management, ANAF audit risk and specific accounting

From a fiscal point of view, correct classification in the fiscal vector is essential. Taxpayers carrying out CAEN 4753 activity may be VAT payers on collection (art. 282 of the Fiscal Code) if annual turnover does not exceed 500,000 lei. Inventory management raises inventory issues, as carpets and wallpapers are sold by the linear meter or by the piece, requiring an accurate quantitative-value accounting system for each item. The correct application of the VAT rate (19% standard) in invoices issued through the RO e-Factura system (mandatory from 2024 for B2B transactions) is monitored by ANAF through the reporting of D406 SAF-T data. A major audit risk arises in setting transfer prices for intra-Community purchases from affiliated companies (e.g., franchises). Also, the deduction of expenses for discounts and reductions offered to customers must be supported by supporting documents (credit notes). The obligation to issue a fiscal receipt for sales to individuals through cash registers connected to ANAF remains mandatory, subject to fines provided by Government Ordinance 28/1999. For micro-enterprises, the tax rate (1% or 3%) depends on the number of employees and the income achieved. We recommend consignment contracts for the display of samples and a separate management accounting by product families (carpets, wallpapers, accessories) to facilitate monthly financial reporting. The lack of a rigorous annual inventory is a frequent trigger for ANAF inspections.