4755

Authorization Procedure and Trade Register Aspects for CAEN 4755

For registering with the Trade Register (ONRC) the activity of retail sale of furniture, lighting articles and other household articles n.e.c. (CAEN 4755), the standard steps for setting up an LLC, sole proprietorship or individual enterprise must be followed. The special requirement consists of correctly completing the main and secondary object of activity with the CAEN code 4755, without affecting the fiscal coding. When submitting the file, the affidavit according to Law 359/2004 will be requested, certifying the fulfillment of operating conditions (adequate space, environmental and sanitary-veterinary authorizations, as applicable). The constitutive documents must specify the registered office and work points, including warehouses. ONRC fees are calculated according to the legislation in force; registration and publication fees in the Official Gazette are paid. Individual authorized persons (PFA) can carry out this activity if it does not involve managing large stocks; the corporate form is recommended.

The Trade Register does not require prior endorsements for CAEN 4755, except in cases where explosive or flammable materials are sold (e.g., gas chandeliers); standardly, the general trade regime applies. VAT registration is mandatory if turnover exceeds the threshold of 300,000 RON, but voluntary registration is also possible. Specific forms are submitted to ONRC (registration application, constitutive act, signature specimen, affidavit). My recommendation: check whether the CAEN code is included in the main object of activity, because ANAF correlates taxation with the main CAEN code (income/profit tax).

Regulatory Framework, Specific Endorsements and Control Institutions

The retail trade activity under CAEN 4755 is subject to Government Emergency Ordinance 99/2000 on the commercialization of products and Law 296/2004 on the Consumer Code. Endorsements are limited: no sanitary authorization is required for standard household furniture and lighting, but if articles that come into contact with food (tableware, cutlery) are sold, an authorization from the Public Health Department is required. For electrical products (candlesticks, lamps), the RED Directive must be complied with and an EC declaration of conformity is requested. Online trading entails the obligation to register in the RO e-Factura system and comply with GDPR. Inspections are carried out by ANPC (quality, labeling) and the Territorial Labor Inspectorate (ITM) for compliance with occupational safety standards. Environmental authorization is necessary only if the warehouse area exceeds 200 sqm and specific waste is generated (packaging, used furniture); otherwise, only a notification to the Environmental Protection Agency is filed.

For imports of furniture or lighting articles, a certificate of origin and customs documents are required, and for wood products – FSC certification if eco-labeling is desired. Tax control falls under ANAF, which verifies obligations related to profit/income tax, VAT and monthly/quarterly declarations. There is no mandatory prior endorsement from ANAF, but obtaining the tax registration certificate before starting activity is recommended. For online commerce, it is mandatory to display terms and conditions according to Government Emergency Ordinance 34/2014 on consumer rights.

Tax Management, ANAF Audit Risk and Specific Accounting

Turnover from CAEN 4755 is classified as income from commercial activities. If conducted through an LLC, applies profit tax of 16% or micro-enterprise income tax (1% for revenues up to 500,000 euros, if at least one employee is employed). PFAs are subject to income tax (10%) and social contributions. The standard VAT of 19% applies to furniture and lighting articles, except for children's products (strollers, car seats) where the reduced rate of 9% applies if they qualify as household articles for children. The reverse charge regime does not apply, as transactions are B2C.

The risk of ANAF audit is medium to high if cash operations are involved. I recommend implementing electronic cash registers connected to ANAF, according to Order 112/2017. Furniture inventories must be inventoried annually using the weighted average cost or FIFO method, and inventory differences are adjusted in the accounts. Transport, packaging and advertising expenses are deductible but must be justified by specific documents. ANAF may verify the reality of intra-Community acquisition operations (if furniture is imported from the EU) by requesting transport documents and VAT invoices. Reporting obligations include: Declaration 394 (invoices), Declaration 406 (inventory) if opted, and the annual financial statements. Specialized consultancy is recommended for preparing the transfer pricing file if transactions with related parties are made. Contraventions to trade rules may result in fines up to 50,000 RON, and ANAF may order the suspension of activity for non-compliance with tax obligations. To avoid litigation, keep the purchase and sales registers, and correctly apply VAT at the time of chargeability (upon invoicing or receipt, depending on the option).