5911

Authorisation procedure and Trade Register aspects for CAEN 5911

To set up a company that will carry out motion picture, video and television programme production activities, the first step is registration with the National Trade Register Office (ONRC). CAEN code 5911 falls under the main class, and the applicant must specify the principal activity exactly according to the Classification of Activities in the National Economy. The standard procedure requires the submission of the registration application, the constitutive documents (partnership agreement or single constitutive deed) and the sworn declaration under Law 359/2004 regarding the fulfilment of operating conditions. No prior approvals from ONRC are required, but the registered office must be suitable for audiovisual production activities (filming spaces, offices, equipment storage). For companies producing feature films, short films or documentaries, it is recommended to also register secondary related CAEN codes: 5912 (post-production), 6010 (radio broadcasting), 6020 (television programmes) and 9003 (artistic creation). At incorporation, a notification regarding the actual start of activity is submitted to ONRC, and the fiscal vector is automatically activated by the Trade Register through the transmission of the file to the Tax Authority (ANAF).

Regulatory framework, specific permits and control institutions

Film and audiovisual production is subject to authorisation by the National Centre for Cinematography (CNC) in the case of creative films and documentaries, under Emergency Ordinance No. 39/2005. For television activities, an audiovisual licence issued by the National Audiovisual Council (CNA) is required. Without these permits, the production or broadcasting of television programmes is prohibited. Other applicable normative acts: Law 8/1996 on copyright and related rights, which regulates the assignment of exploitation rights; Law 504/2002 on audiovisual (for television); CNP norms on access to the Film Fund and contribution to the Film Fund. The control institutions include ANAF (for tax and local tax matters), ITM (for employment contracts of actors and technicians), CNA and CNC. In the case of video productions for advertising, the provisions of Law 62/2006 on advertising also apply. Furthermore, for productions made as co-productions, international conventions and bilateral or multilateral agreements are applicable.

Fiscal management, ANAF audit risk and specific accounting

From a fiscal perspective, companies operating in the field of film and video production are liable for corporate income tax (16%) or micro-enterprise income tax, if they meet the conditions regarding the number of employees and turnover. VAT is applicable at the standard rate (19%) for the sale of broadcasting rights, and for participation in festivals or public screenings, the reduced rate (5%) may apply for cultural services. The single return (D212) is mandatory for income obtained by individuals from copyright, and the company is obliged to calculate and withhold tax on intellectual property income, according to Article 72 of the Fiscal Code. Social contributions for individuals with management or assignment of rights contracts are paid based on the single return. A major ANAF audit risk concerns the deductibility of production expenses, such as accommodation, transport, hospitality and artists' fees. ANAF may consider these expenses non-deductible if they are not justified by specific documents: production estimates, payment sheets, electronic invoices in the RO e-Factura system, and especially service provision contracts concluded with each collaborator. Companies must submit monthly the D300 return (VAT return) and comply with the deadlines for declaring copyright income (D205, D207). Specific accounting requires separate recording of pre-production, production and post-production costs, and the amortisation of intangible fixed assets (broadcasting rights, completed films) is carried out over the term of the assignment contracts. Operators must keep all assignment of rights contracts and payment documents for at least 10 years, given the long statute of limitations for copyright.