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Authorisation procedure and Trade Register aspects for NACE 4771

For setting up a company that will carry out the retail sale of clothing (NACE 4771), the first step is registration with the National Trade Register Office (ONRC). The registration application is submitted in compliance with Law No. 359/2004 on the simplification of registration procedures, including the administrator's declaration on own responsibility that the company meets the operating conditions. When completing the object of activity, the phrase 'Retail sale of clothing in specialised stores' (NACE code 4771) shall be explicitly mentioned, without extending to ancillary activities that require additional authorisations (e.g. textile production). For authorised natural persons (PFA) or individual enterprises (II), the procedure is carried out by submitting the tax registration declaration to the Tax Authority (ANAF), followed by registration with the ONRC. It is essential that, after registration, the company requests the registration with the Trade Register of the registered office and the secondary places of business, if any, in compliance with the spatial conditions imposed by specific legislation (hygiene rules, accessibility).

Regulatory framework, specific endorsements and control institutions

Retail trade of clothing is subject to the general regulations on consumer protection (Government Ordinance 21/1992) and the rules on labelling of textile products (EU Regulation 1007/2011). No prior endorsements from health or environmental authorities are required, except in cases where sales activities are carried out in enclosed spaces that must comply with fire safety rules (ISU endorsement). The main control institutions are: the National Authority for Consumer Protection (ANPC), which verifies labelling, product quality and compliance with guarantees; the Territorial Labour Inspectorate (ITM) for compliance with labour rules; and the Tax Authority (ANAF) for tax audits. In the case of marketing children's clothing, additional safety requirements apply (SR EN 14682). For online sales, the obligations under Government Emergency Ordinance 34/2014 on electronic commerce and Law 365/2002 on electronic commerce are added, including the provision of pre-contractual information and the right of withdrawal within 14 days.

Tax management, ANAF audit risk and specific accounting

From a fiscal perspective, the retail sale of clothing is subject to corporate income tax (or income tax, in the case of eligible micro-enterprises) and VAT at the standard rate of 19%. Registration in the RO e-Factura system is mandatory for all invoices issued to legal entities, and for supplies to individuals, a cash register connected to the ANAF system (e-Fiscalisation) is used. Specific accounting includes inventory management using valuation methods (FIFO, weighted average cost) and recording adjustments for impairment or write-offs. A major ANAF audit risk arises in the case of incorrect declaration of the VAT tax base or income, especially when operating with discounts or seasonal reductions. Also, non-compliance with the e-Factura system may attract fines of up to 10,000 lei. For micro-enterprises, the tax vector must be updated with the ONRC within 30 days of exceeding the turnover threshold of 500,000 euros. We recommend drawing up a documented pricing and discount policy, as well as keeping supporting documents for each transaction, to avoid VAT adjustments during an audit.