7413

Authorization procedure and Trade Register aspects for CAEN 7413

To register the interior design activity (CAEN code 7413) with the Trade Register (ONRC), you need to submit a sworn declaration in accordance with Law 359/2004. This must certify compliance with the specific conditions, although for this code no prior approvals from other institutions are required. When establishing the main (secondary) object of activity, the official denomination used is 'Interior design activities'. In the case of a legal entity (LLC), the articles of association must include a description of the activity, and the CAEN code must be explicitly mentioned in the registration application. Attention: if the activity also involves execution of works (interior fitting, custom furniture), you must additionally register CAEN code 4339 (Other finishing works) or 3109 (Manufacture of furniture – if you actually produce them), as these have different fiscal and authorization regimes. Check with the Tax Authority (ANAF) the fiscal vector: for pure design (consultancy), you may opt for the VAT at collection regime (if annual turnover is less than EUR 500,000) or VAT exemption (for unregistered individuals). For authorized natural persons (PFA), registration with the Trade Register with a professional office is recommended.

Regulatory framework, specific approvals, and control institutions

The main applicable normative act is Government Emergency Ordinance 99/2000 (electronic commerce), but for interior design the CAEN code falls under Law 50/1991 on construction authorization ONLY if the services involve structural changes (walls, installations). Otherwise (only color proposals, furniture), no approval from the State Inspectorate in Construction is required. However, for any direct intervention on the building (even carpentry), you need a building permit. The relevant control institutions are: Tax Authority (ANAF) (fiscal control – increased risk when deducting expenses for sample materials and travel), Labour Inspectorate (ITM) (if you have employees – employment contract for designers), and for mixed activities (design+execution) Consumer Protection Law 132/2010 – ANPC also applies. Recommended: clear contracts with clients specifying the limit of professional liability (civil liability insurance – mandatory if you attest the quality of architect or designer through professional orders, but not required for pure CAEN code 7413).

Fiscal management, ANAF audit risk, and specific accounting

From a fiscal perspective, income classification: for design projects (fees, feasibility studies) a 10% withholding tax applies (if the beneficiary is a legal entity, according to Art. 7 of the Fiscal Code) only for authorized natural persons (PFA) in the real system. Companies (LLC, SA) pay 16% corporate income tax (or 1% on revenue for micro-enterprises, if they have at least 1 employee and revenues under EUR 500,000). Attention to RO e-Factura: for all invoices issued between legal entities, transmission in the e-Factura system is mandatory from July 1, 2022. For expense deductions: office/workshop equipment (educational materials, samples, furniture) is justified with invoices and receiving reports. A major ANAF audit risk is the incorrect classification of income as service provision vs. sale of goods (if you also deliver furniture, you will be treated as a trader, with stock and margin obligations). Recommendation: separate activities under two distinct CAEN codes, with analytical accounting. For VAT, if you exceed the threshold of RON 300,000 annual turnover, you must register for VAT purposes. Individuals (PFA) may opt for VAT at collection to defer payment. Do not forget to submit the Single Declaration (individuals) by May 25 inclusive (for 2022 income) and declarations 100 and 300 (LLC) monthly/quarterly. Accounting must separately highlight projects (through orders or accounting notes) to justify transfer prices for mixed activities.