4778

Authorization procedure and Trade Register aspects for CAEN 4778

When setting up an LLC or sole proprietorship with main activity 4778, registration with the Trade Register (ONRC) requires submitting a sworn declaration according to Law 359/2004, by which the administrator confirms compliance with operating conditions. For this CAEN class, no mandatory prior approvals from other institutions are required, except when selling goods subject to special regulations (e.g., cosmetics, food supplements, toys – which require notification to ANPC or DSP). Upon registration, the fiscal vector is completed at the Tax Authority (ANAF), and the registered office must be available for inspection. It is essential that after registration, VAT registration is requested if the turnover exceeds the threshold of 300,000 lei or if the company opts for reverse charge. Also, the single declaration on estimated income (D220) must be submitted for sole proprietorships.

Regulatory framework, specific approvals and control institutions

Retail trade of other new goods is subject to the provisions of Government Emergency Ordinance 99/2000 on the commercialization of products and market services, correlated with Law 296/2023 on consumer protection. ANAF and ANPC control compliance with rules on labeling, guarantees and expiration dates. For products subject to excise duties (alcohol, tobacco) or with special regimes (weapons, pesticides), approvals from the relevant institutions are required (e.g., IGPR for weapons). For online sales, EU Regulation 2017/2394 on consumer protection cooperation applies, as well as the obligation to have terms and conditions compliant with GDPR. ANPC checks include the content of standard contracts and unfair commercial practices. For cosmetic products, notification to the Ministry of Health through the CPNP system is mandatory, and food supplements are registered with the National Institute of Public Health.

Fiscal management, ANAF audit risk and specific accounting

From a fiscal perspective, CAEN 4778 involves VAT collection at standard rate (19%) or reduced rates (5% or 9%), depending on the goods sold. For example, the sale of food products with discount is subject to 9% rate, and books, 5%. ANAF carefully analyzes the correct tariff classification of goods to avoid incorrect VAT rate application. From an accounting point of view, goods are recorded in account 371, and price differences (commercial margin) are reflected in account 378. At the end of the period, physical inventory is performed and the cost of goods sold is calculated using the retail price method or standard cost method. The risk of ANAF audit is high for entities operating with cash (fiscal cash registers), as the issuance of fiscal receipts through the RO e-Factura system for B2C is mandatory, and for B2B invoices, e-Factura transmission has been mandatory since January 1, 2024. For sole proprietorships and micro-enterprises, income tax is calculated under the real system or based on income norms, if applicable. Monthly tax returns (D300, D390, D406) and the annual balance sheet must be submitted on time, and non-compliance attracts severe penalties (fines, interest).