5621

Authorization procedure and Trade Register aspects for CAEN 5621

Setting up a company that will carry out catering activities for events (CAEN code 5621) requires going through the standard registration procedure at the Trade Register (ONRC). The registration application, the deed of incorporation, the affidavit pursuant to Law 359/2004 on the fulfillment of operating conditions, as well as proof of the registered office must be submitted. At the time of registration, the main object of activity must be CAEN code 5621. Preventive verification of the premises by the town hall is not mandatory in all cases, but it is recommended to obtain an urbanism certificate or a conformity address, especially if food production will also take place at the premises.

After registration, the company must apply for specific operating authorizations: health approval from the Public Health Directorate (DSP) for food production and storage spaces, fire safety authorization from the Inspectorate for Emergency Situations (ISU) (if the space exceeds 200 sqm or serves events with public), and sanitary-veterinary registration with the Sanitary-Veterinary and Food Safety Directorate (DSVSA) if products of animal origin are handled. At the same time, registration in the virtual private space is requested from the Tax Authority (ANAF) and the fiscal vector is activated with CAEN code 5621. For events organized in outdoor locations, a temporary authorization from the local town hall where the event takes place is required, according to public order norms.

Regulatory framework, specific approvals and control authorities

Catering activities for events are subject to national and European regulations on food safety: EC Regulation 852/2004 on the hygiene of food products, Government Decision 1060/2005 on labeling, and Law 148/2004 on food products. Operators must implement a self-control system based on HACCP principles, demonstrated through written procedures and records. The DSP carries out periodic checks on hygiene conditions, storage, storage temperatures and labeling. The DSVSA controls the traceability of meat, eggs and dairy products.

For events with more than 100 people, a temporary approval from the DSP is required for each event, according to the calendar. Also, the ISU requires evacuation plans and the provision of fire extinguishers for production spaces. If alcoholic beverages are served, an authorization from the town hall for the sale of alcohol is necessary and, implicitly, compliance with Law 61/1991 on public order. If the events include music or shows, the copyright fees (Afiș) apply and contracts are concluded with collective management societies.

The main control institutions are: DSP, DSVSA, ISU, Labor Inspectorate (ITM) (for working conditions and employment contracts), ANAF (for taxation), and local town halls. Good management of the relationship with these institutions involves keeping HACCP records, control registers and proof of payment of authorizations. Any lack of approvals can attract fines between 10,000 and 50,000 lei according to the legislation in force.

Tax management, ANAF audit risk and specific accounting

The Fiscal Code treats catering activity as a service provision and, in certain cases, as a delivery of goods (if prepared food is delivered to the client's premises). The tax base for VAT is the total value of the service, including ingredients and labor. ANAF may reclassify the operations if it considers that there is a separate goodwill. It is essential to use the RO e-Factura system for all invoices issued to legal entities, and for advances and settlements, it is recommended to use proforma invoices or advance invoices. In the case of cash payments, the issuance of a fiscal receipt through a cash register is mandatory, except for situations where the threshold of 5,000 lei/day is exceeded (in which case an invoice with collection into the account can be used).

In accounting, revenue recognition occurs at the date of actual performance of the service (the event date), not at the date of collection of the advance. Direct costs (ingredients, venue rental, personnel) are accounted for per contract, and general expenses are allocated proportionally. ANAF will check the correlation of costs with raw materials and the number of portions to prevent underreporting of revenues. In the case of rented premises, it is mandatory to register the lease agreements with ANAF within 30 days.

The audit risk from ANAF is high for this CAEN class due to cash flows and the possibility of non-declaration of some services. To minimize the risk, it is recommended to keep participant lists, copies of contracts, photographs of events, and strict records of raw material inventories. Also, if services are subcontracted (e.g., waiters or external chefs), it is necessary to conclude service contracts and declare them through D112. Payment of contributions to the state budget for employees must be made by the 25th of the following month, and the monthly declaration D112 is submitted by the 25th inclusive. Any delay may entail late payment penalties and enforcement.

Regarding profit, the standard corporate income tax (16%) applies or the micro-enterprise income tax if the company falls within the legal thresholds (with attention to legislative changes). It is allowed to deduct protocol expenses up to 2% of revenues, and for events, expenses with food and beverages are fully deductible as long as supporting documents exist. It is not recommended to deduct personal expenses or purchases without a fiscal invoice.