7220

Authorization procedure and Trade Register aspects for CAEN 7220

Establishing a company that carries out research and development in social sciences and humanities (CAEN code 7220) involves going through the standard registration stages at the Trade Register (ONRC), but with specifications regarding the object of activity. When submitting the registration application, a sworn statement is completed in accordance with Law 359/2004 on fulfilling the legal conditions for carrying out the activity. No prior approval from a specific regulatory authority is required for this CAEN code; however, if the company intends to conduct research in related fields (e.g., clinical studies or testing on human subjects), approvals from ANMCS or the Ministry of Health may be necessary. When establishing the main object of activity, it is recommended to explicitly include “research and development in social sciences” and, if applicable, also mention CAEN 7219 (research in natural sciences) or CAEN 7490 (consultancy activities). For the registered office, a space intended for office use or a domicile declared under one's own responsibility may be used, in compliance with local urban planning regulations. There is no mandatory minimum share capital, but the general rules of Law 31/1990 apply (minimum RON 200 for LLC).

Regulatory framework, specific approvals, and control institutions

Research and development activity is regulated by Government Ordinance 57/2002 on scientific research and technological development, as well as by Law 319/2003 on the status of research and development personnel. Although CAEN code 7220 is not subject to operating authorization, the company must register with the Tax Authority (ANAF) within 30 days of incorporation and obtain the fiscal vector. If the company intends to benefit from tax incentives (profit tax exemption for research and development expenses under Fiscal Code, Article 47), it must submit to ANAF a sworn declaration stating that the activities fall within the legal definition of research and development and maintain supporting documentation. For projects funded by European funds, approvals from UEFISCDI or the Ministry of Research may be required. There is no permanent control institution, but ANAF may verify the reality of research activities, and ANPC or the Ministry of Labour may intervene in case of complaints regarding data protection or working conditions.

Tax management, ANAF audit risk, and specific accounting

Companies carrying out research and development activities may apply the profit tax exemption for eligible expenses (salaries, patents, equipment) up to 50% of the tax due, but not exceeding 50% of the actual expense. It is recommended to evaluate research projects and record them separately in accounting, using accounts 600-609 (research expenses) and account 203 (Intangible assets) if the results are capitalized. ANAF may conduct an in-depth audit of the activity, focusing on the innovative nature of the projects and the reality of expenses. The company must keep supporting documents (reports, studies, contracts with funders) for at least 5 years. Regarding the RO e-Factura system, the general rules for B2B relationships apply, and for services provided to public entities, invoicing through the system is mandatory. The single declaration is completed for income earned by researchers from collaborations or research contracts if they are not employees. For research projects with non-reimbursable funding, revenues received are exempt from profit tax if reinvested in research activity, under specific conditions. It is recommended to consult an accountant specialized in tax incentives for research and development and to continuously update internal procedures regarding expense classification and audit documentation.