6811

Authorization procedure and Trade Register aspects for CAEN 6811

Registration with the Trade Register (ONRC) for CAEN 6811 - Buying and selling of own real estate involves submitting a standard file, with the mention that the main object of activity must be clearly defined. The company may acquire land, buildings or constructions for resale, without providing brokerage services. No specific minimum share capital is required, but an adequate value for real estate transactions is recommended. At incorporation, a declaration on own responsibility according to Law 359/2004 regarding the fulfillment of operating conditions is submitted.

For the registered office, any space is accepted, but the ONRC may request proof of the right of use. The obligation to register the office is done through the specific form. Companies that carry out frequent operations must update the fiscal vector at the Trade Register. There are no special authorizations issued by ONRC for this CAEN code, but any change of office or shareholders is registered within 15 days.

Regulatory framework, specific permits and control institutions

The main applicable normative act is the Fiscal Code, which regulates the taxation of profit from the sale of real estate. For land transactions, Law 17/2014 on agricultural land acquisitions also applies. In the absence of special permits, no environmental permits are required, but for buildings with seismic risk, an energy certificate may be necessary. The Tax Authority (ANAF) is the main institution that checks fiscal compliance, including through risk analyses regarding transfer prices in the case of sales to affiliated parties.

For new real estate transactions, the builder must comply with Law 10/1995 on quality in construction. Sales of old buildings require verification of the legality of the construction (proof of building permit and reception report). The Trade Register does not issue special permits, but the company must be registered for tax purposes. In the case of bulk sales (real estate developers), Law 372/2005 on energy efficiency also applies. Control institutions are ANAF, ANCPI (for land registration) and local authorities for urban planning.

Tax management, ANAF audit risk and specific accounting

Accounting for CAEN 6811 requires recording real estate as inventories (account 371) if purchased for resale, not as fixed assets. The sale is reflected in income (account 707) with recognition of the acquisition cost. VAT is key: the sale of old buildings (after 5 years from completion) may be exempt with limited deduction right. ANAF frequently analyzes high-value transactions, especially if the price differs significantly from the market value.

The audit risk is high for companies with low turnover and occasional sales. Documentation on the valuation of real estate at acquisition and justification of the sale price is recommended. The single declaration (Form 212) is submitted for income from the disposal of real estate by individuals, but for legal entities, corporate income tax applies (or micro-enterprise income tax if conditions are met). Proximity to other CAEN codes (such as 6820 - leasing) may attract ANAF's attention if the main object is not respected. Local taxes (building tax) are declared through the statement of changes at the town hall.

For risk management, it is mandatory to draw up sale-purchase contracts in notarial authentic form and register in the Land Book. Any transaction with an affiliated person must be documented through a transfer pricing study. In the case of purchases from individuals, a 1% tax (or legal rate) is withheld and declaration 100 is submitted. Companies that carry out frequent operations must obtain a fiscal attestation certificate from ANAF for each transaction.