7311

Authorization procedure and Trade Register aspects for CAEN 7311

For individuals or legal entities intending to carry out advertising activities (CAEN 7311), the first mandatory step is registration with the National Trade Register Office (ONRC). The company may be established as an SRL, SA, SNC or PFA, with a clear mention of the main object of activity. When submitting the documents, a declaration on own responsibility according to Law 359/2004 will be completed, by which the legal representative certifies that the company does not require prior operating authorizations, except for those specific to certain sub-domains (e.g., outdoor advertising may require approval from local authorities). CAEN code 7311 does not require specialized studies or additional approvals at incorporation, but it is recommended to verify the related secondary codes (e.g., if public relations activities are also carried out).

Regulatory framework, specific approvals and control institutions

The main regulation for advertising activities is Law 148/2000 on advertising, republished, which establishes the conditions for carrying out advertisements, prohibition of misleading advertising and consumer protection. Also, the provisions of the Consumer Code (Law 363/2007) and the norms of the National Authority for Consumer Protection (ANPC) apply. In the case of online advertising, the rules on data protection (GDPR – Regulation 679/2016) and Law 506/2004 on unsolicited commercial communications must be respected. Agencies that broadcast audio-visual spots are subject to the control of the National Audiovisual Council (CNA). For outdoor advertising (billboards, banners), approval from the local mayor's office is required. Regarding medical advertising, special restrictions apply according to Order of the Minister of Health 1243/2020. Control institutions include the Tax Authority (ANAF) (for taxation), the Labour Inspectorate (ITM) (for working conditions) and the Financial Guard.

Tax management, ANAF audit risk and specific accounting

From a tax perspective, advertising agencies pay corporate income tax of 16% (or micro-enterprise tax, if they meet the legal conditions – revenues under EUR 1,000,000, over 1 employee, turnover < EUR 500,000 as of 31.12). Registration as a VAT payer is mandatory if the turnover exceeds the threshold of RON 300,000. The RO e-Factura system applies to all issued invoices, and agencies must implement compliant reporting mechanisms. Also, it is recommended to file the single declaration on estimated income if income from other sources is obtained. The risk of ANAF audit is increased in the advertising field due to frequent cash transactions and sponsorship contracts. It is necessary to separately record advertising expenses (deductible up to 1% of income, according to Article 25 paragraph (3) of the Fiscal Code, except for online advertising which is fully deductible). Accounting will separately record agency commissions, production costs of advertising materials and discounts granted. From an accounting standpoint, OMFP 1802/2014 applies for companies that do not apply IFRS. We recommend written contracts with clear invoicing and payment terms to avoid disputes.