7112

Authorization procedure and Trade Register aspects for CAEN 7112

For registering a company with the Trade Register (ONRC) under CAEN code 7112, standard documents are submitted in accordance with Law No. 265/2022 and Law No. 359/2004. A declaration on own responsibility regarding compliance with operating conditions is mandatory (single form – for entries). If the main object of activity declared includes design, installations or construction activities, additional approvals from the Ministry of Development through territorial inspectorates are required. The preliminary verification at ONRC is based on the revised CAEN nomenclature – code 7112 exclusively covers technical consultancy, design and engineering services, without production or trade. If execution of works is also intended, registering an additional code (e.g., 41.20 – construction) is mandatory.

Regulatory framework, specific approvals and control institutions

The activity falls under Law No. 10/1995 on quality in construction (if it involves design) and Law No. 50/1991 on authorizing the execution of construction works. For specialized services, certification under Government Emergency Ordinance (OUG) 32/2015 on organizing engineering activity is required – obtained from the Association of Construction Engineer Designers (AICPC) or affiliation with a professional organization. The Tax Authority (ANAF) requires the declaration of the fiscal vector upon establishment; the Fiscal Code imposes income tax of 16% (or 1% on revenue for micro-enterprises with 1-2 employees) and VAT on collection if the threshold of RON 300,000 is exceeded. Inspections are carried out by the State Inspectorate in Construction (ISC) for high-risk projects, and ANAF may request analysis of technical and fiscal documentation in case of discrepancies regarding deductible expenses (e.g., subcontracted consultancy services).

Fiscal management, ANAF audit risk and specific accounting

From a fiscal perspective, the main audit risk is deduction of expenses with subcontractors – if there are no clear contracts and supporting documents (invoices, estimates, reception minutes). ANAF verifies the reality of transactions based on the RO e-Factura system with a deadline of 5 working days for transmitting invoices or within a maximum of 45 days for B2B relationships. Revenue is recorded in account 704 (Revenue from executed works and services rendered), and current expenses (personnel, design, approvals) are treated without issues. Micro-enterprises with revenues below EUR 500,000 may apply 1% income tax if they do not exceed 3 employees; those with higher revenues are subject to 16% profit tax. To avoid reclassification of income, it is recommended to enter into service contracts with detailed technical clauses, and for cross-border services, the VAT regime applies – the place of supply is determined according to Article 278 of the Fiscal Code. Do not forget the obligation to submit the Single Declaration for income from independent activities (if carried out in one's own name). Any change of registered office, associates or secondary object of activity must be communicated to ONRC within 15 days after adopting the decision.