6020

Authorization procedure and Trade Register aspects for CAEN 6020

Establishing a company whose main activity is CAEN code 6020 requires following the standard procedures at the Trade Register (ONRC), with the note that television broadcasting and video program distribution activities are subject to special regulations in the audiovisual field. At the time of filing the registration application, you must specify exactly the main activity, namely 'Television broadcasting activities' or 'Video program distribution activities'. Law 359/2004 requires that within 30 days of registration, you submit to the Trade Register a sworn declaration attesting that you hold the necessary authorizations and permits for carrying out the activity. For CAEN 6020, the essential permit is the one issued by the National Audiovisual Council (CNA), without which you cannot operate legally. You must also apply for an audiovisual license, a procedure that can take several months and involves submitting a detailed business plan, evidence of technical and financial capacity, and compliance with conditions of pluralism and competition.

Regulatory framework, specific permits and control institutions

The main normative act governing television and video distribution activity is the Audiovisual Law no. 504/2002, as amended and supplemented. Depending on the exact type of activity, you will need an audiovisual license (for terrestrial, cable or satellite broadcasting) or only a technical authorization from the CNA. The relevant control institutions are: National Audiovisual Council (CNA) – for granting licenses and monitoring content; Ministry of Culture – for compliance with copyright in the case of video program distribution; National Authority for Administration and Regulation in Communications (ANCOM) – for technical aspects regarding frequencies and communications infrastructure. Also, if you distribute video programs in physical format (DVD, Blu-ray), you must comply with copyright legislation, and in the case of online broadcasting, you must obtain the consent of rights holders and implement measures to protect minors (parental control system). Registration with the Trade Register is made with the mention 'regulated activity', and subsequently, the CNA will communicate to the Trade Register the granting of the license. It is mandatory to keep an archive of the broadcasted programs for a minimum period of 90 days, at the disposal of the CNA.

Tax management, ANAF audit risk and specific accounting

From a fiscal perspective, the company with CAEN 6020 is subject to profit tax (or micro-enterprise income tax, if it meets the legal conditions). VAT applies according to the general regime, with the possibility of charging VAT upon collection (Articles 282-288 of the Fiscal Code) for receipts from subscribers or suppliers. It is vital to correctly record income from advertising, subsidies, subscription fees or individual sales of programs. Expenses for the acquisition of broadcasting rights, production costs, royalties paid to authors are deductible within the limits provided by the Fiscal Code, provided supporting documents exist. Attention to withholding tax for royalties paid to non-residents (Article 223 of the Fiscal Code).

The risk of ANAF audit is high, as ANAF frequently checks the correctness of recording advertising income and VAT deductions for acquisitions of broadcasting rights. It is recommended to keep broadcasting contracts, invoices issued by external suppliers, proof of payments and bank statements. The activity is also subject to the RO e-Factura system, and invoices issued between taxable persons must be transmitted in the e-Factura system. Also, the single declaration (form 212) is completed if there is income from other independent activities. The accounting must reflect distinctly the income by type of activity (broadcasting vs. video distribution) and comply with the provisions of OMPF 1802/2014. Do not forget to request the special fiscal registration code for companies broadcasting TV programs, if applicable, and declare the fiscal vector to ANAF within 30 days of registration.