4931

Authorization procedure and Trade Register aspects for NACE 4931

For registration with the Trade Register (ONRC) of the main activity 4931 – Land transport of passengers, on a scheduled basis, the company must submit, together with the application for registration or modification, a set of specific documents. According to Law 31/1990 and Law 359/2004, it is mandatory to submit a declaration on own responsibility stating that the registered office is suitable for carrying out transport activities. Also, for this NACE code, the prior approval of the Romanian Road Authority (ARR) is required – a document certifying compliance with the conditions of financial capacity, professional competence and good repute. Without this approval, ONRC cannot register the activity. In practice, a prior authorization procedure is followed, after which the transport license (conforming copy) is obtained and, subsequently, registration in the trade register is made.

Regulatory framework, specific approvals and control institutions

The activity of scheduled passenger transport is strictly regulated by Government Ordinance no. 27/2011 on road transport and Regulation (EC) no. 1071/2009. The main control institutions are the Romanian Road Authority (ARR) and the State Inspectorate for the Control of Road Transport (ISCTR). In addition to the transport license, the operator must obtain health approvals (DSP) and from the Inspectorate for Emergency Situations (ISU) for the registered office and operating base. Depending on the specifics, environmental approvals may also be required, especially if parking spaces or maintenance workshops are owned. For county/inter-county routes, a transport schedule approved by the county council or the Ministry of Transport is issued. The lack of these approvals attracts contraventional sanctions and suspension of activity.

Fiscal management, ANAF audit risk and specific accounting

From a fiscal point of view, companies operating under NACE 4931 are subject to the Fiscal Code and have specific obligations. Income from passenger transport is taxed at 16% corporate income tax (or 1% for micro-enterprises, if they meet the turnover and employee conditions). If operating with buses/minibuses, expenses for fuel, spare parts, vignette, RCA/CASCO insurance and the depreciation of means of transport are deductible. Note that for tickets sold, the standard VAT rate of 19% applies, unless exempt. Major risk of ANAF audit: incomplete declaration of income (underreporting of passengers) and incorrect declaration of the fiscal vector at the time of establishment. Strict record keeping of timetables and electronic trip sheets is required. Accounting must include analytical accounts for each route and separate management for each vehicle. In the event of inspections, ANAF checks the RO e-Factura system for invoices issued to legal entities and fiscal cash registers connected to ANAF servers.