5110

Authorization procedure and Trade Register aspects for CAEN 5110

The establishment of a company with the main object of activity CAEN 5110 – Air passenger transport requires going through specific steps at the National Trade Register Office (ONRC). The registration application mentions the CAEN code 5110 as the main activity, and if the company also carries out related activities (e.g., handling or charter), the corresponding secondary CAEN codes will be entered. When submitting the documents, the registered office is attested by a loan-for-use contract or lease, plus the affidavit under Law 359/2004 regarding the fulfillment of operating conditions. The administrator and associates must have no criminal record in the transport or fiscal field. ONRC checks the availability of the company name and registers the company, but the actual operating authorization is subsequently obtained from the Romanian Civil Aeronautical Authority (AACR).

Regulatory framework, specific endorsements and control institutions

Air passenger transport operators are subject to a strict authorization regime. The main normative act is Government Ordinance No. 29/1997 on the Civil Aeronautical Code, supplemented by Regulation (EC) No 1008/2008 on common rules for the operation of air services. In Romania, the Romanian Civil Aeronautical Authority (AACR) issues the operating license (Air Operator Certificate – AOC) and the air transport license. The company must have an aircraft registered in the Aeronautical Registry, employ qualified flight personnel and conclude civil liability insurance for passengers (pursuant to Regulation (EC) No 785/2004). In addition, a security endorsement issued by the Ministry of Transport is required, and, where applicable, an endorsement from the National Authority for Consumer Protection. Periodic inspections are carried out by the AACR, and non-compliance with the rules may lead to suspension or withdrawal of the license. Low-cost or charter operators must comply with the same rules, with specific features regarding airport slots and traffic rights.

Tax management, ANAF audit risk and specific accounting

From a tax perspective, income from air passenger transport is subject to the standard corporate income tax of 16%, with the possibility of applying exemptions for income from operating aircraft in international traffic (within the limits of the provisions of the Fiscal Code, art. 27). VAT for air tickets to intra-Community destinations is 0%, and for domestic flights a rate of 9% applies (as passenger transport activity). Operators must register in the RO e-Factura system for B2B relations, but invoices to passengers are usually issued as e-tickets. Accounting reflects particularities: recognition of revenue from tickets sold and unused (as deferred revenue), depreciation of aircraft (if owned) or operating lease expenses, fuel costs, airport and navigation fees, as well as flight personnel expenses. ANAF pays special attention to verifying VAT on imports of fuel or spare parts, the correctness of applying exemptions and the payment of tax on non-resident income (slot or handling fees paid to third parties). The audit risk is high due to the complexity of international transactions. Operators in this field benefit from the ability to apply the margin scheme for travel agencies (if selling packages). Keeping records of logbooks and flight documents is mandatory for tax and safety control. Companies must file the annual corporate income tax return with additional reports on air activities. Failure to comply with registration obligations as a VAT payer or non-submission of monthly returns/decomptes leads to fines and suspension of the operating authorization.