5913

Authorization procedure and Trade Register aspects for CAEN 5913

Registration with the Trade Register (ONRC) for the distribution of films and TV programmes (CAEN code 5913) requires setting up a company (SRL, SA) or PFA. The constitutional deed must include the principal object of activity as 'Activities of distribution of motion picture films, video and television programmes' – the exact official name from the Classification of Economic Activities. For registration, the following are submitted: the ORC certificate of incorporation, proof of registered office, and the sworn declaration under Law 359/2004 regarding the fulfilment of authorisation conditions. No prior operating permits from ONRC are required for this code, but an opinion from the National Commission for Film Classification (CNCF) must be obtained if distributing films to the public, and in the case of TV programme distribution, an opinion from the National Audiovisual Council (CNA) may be necessary. Also, for distribution on physical media (DVD, Blu-ray), regulations on consumer protection and labelling apply. Upon registration, the fiscal vector is completed by submitting form 010 to the Tax Authority (ANAF), specifying CAEN code 5913 as the main or secondary activity.

Regulatory framework, specific approvals and control institutions

The activity of film and TV programme distribution is regulated by the Cinema Law no. 111/1996 and by CNA Decisions for audiovisual content dissemination. For films, obtaining a classification certificate from CNCF before public distribution is mandatory. For TV programmes, distributors must comply with rules on advertising, protection of minors and European production quotas. Control institutions are: CNA (for audiovisual content), the National Authority for Consumer Protection (ANPC) for distribution on physical media, and the General Inspectorate for Immigration (if importing films/programmes from outside the EU). Ownership of copyright is essential; the distributor must have licensing contracts with producers or rights holders. In the case of online distribution (streaming/VOD), the provisions of the Electronic Commerce Law no. 365/2002 and the General Data Protection Regulation (GDPR) also apply. CNA approval is mandatory for any TV programme distribution, and for films, the CNCF classification must be updated for each title. Non-compliance with these obligations leads to penal sanctions and suspension of authorisation.

Tax management, audit risk by ANAF and specific accounting

From a fiscal perspective, income from film/TV distribution is classified as income from service provision or from sale of goods (licences). Taxation is carried out according to the Fiscal Code: standard VAT 19% (if distribution is to taxable persons) or reduced rate 5% for films (according to art. 291 para. (2) lit. a) – distribution of films is included in the category of cultural services). Caution: applying the reduced rate requires compliance with the conditions of direct supply to the public or to cultural operators. Corporate income tax applies at the standard rate (16%) or micro-enterprise income tax if conditions are met. For payments to copyright holders established abroad, withholding tax applies on non-resident income (16% for copyright, exemption under double taxation treaties – using form 109). Accounting must separately show income from licences, costs of acquiring rights and their amortisation. The major ANAF audit risk concerns under-declaration of income from ticket/subscription sales and non-recording of transactions in the e-Factura system (mandatory from 2024 for B2B). It is recommended to have clear licence contracts, compliant invoicing, registration in the special VAT scheme for electronic services (if distribution is online) and archiving of supporting documents for at least 10 years. Also, cash payments are limited to 5,000 lei/day, and for transactions over 10,000 lei, declaration in the RO e-Transport system is required.