7722

Procedure for authorization and Trade Register aspects for CAEN 7722

For registration with the Trade Register (ONRC) of a company carrying out activities classified under CAEN 7722 (Activities of renting and leasing of other personal and household goods n.e.c.), the main object of activity must be explicitly specified in the articles of incorporation, according to the statistical classification. When submitting the file, the self-declaration under Law 359/2004 is completed, by which the administrator confirms fulfillment of the legal conditions for operation.

It is mandatory to clearly mention the types of goods that will be rented or leased. Although there is no general prior approval for this CAEN class, depending on the nature of the goods (e.g., medical equipment, entertainment items, DIY tools), additional authorizations from specialized institutions may be required. I recommend prior consultation with a lawyer specialized in commercial law for the correct drafting of the object of activity, especially if related services are also included.

Regulatory framework, specific approvals, and control institutions

Renting and leasing activities for personal and household goods are indirectly regulated by the Civil Code (rental contract) and by Government Emergency Ordinance 51/1997 on leasing operations. If you opt for financial leasing, the legal regime of leasing applies, with the obligation to conclude contracts in writing and to record them in the accounting records.

For certain goods such as protective equipment, first aid kits, or materials with special regime (e.g., hazardous substances in accessories), an approval from the National Authority for Consumer Protection or from the Environmental Guard is required, if the goods fall under environmental regulations. Also, if you carry out rental activities for high-risk goods (power tools, construction equipment), you must comply with the occupational safety standards established by the Territorial Labor Inspectorate.

The main control institution is the Tax Authority (ANAF), which checks the declaration of rental income and compliance with the tax regime. In addition, the territorial office of the Trade Register may request clarifications regarding the object of activity at the time of registration, especially if the names are unclear or too general.

Tax management, risk of ANAF audit, and specific accounting

From a tax perspective, rental income is classified as income from independent activities or from services (if the company is a legal entity). For LLCs, this income is taxed at 16% (or 1% on revenue if conditions for microenterprise are met, with a threshold of 500,000 euros). I recommend correct classification: if the activity is predominantly rental, no withholding tax applies, but VAT is applicable if the turnover exceeds the threshold of 300,000 RON (or one may opt for VAT registration).

A risk of ANAF audit arises in the declaration of fixed assets. Goods intended for rental must be recorded as tangible assets (class 2) and depreciated according to the normal useful life (Order 1802/2014). Any discrepancy between the recorded goods and the rental contracts may trigger reclassification and penalties. ANAF also checks the correct classification of amounts collected: offsetting with personal expenses or manipulation of transfer prices (in the case of contracts between related parties) is not allowed.

For efficient accounting management, it is recommended to clearly separate the management of goods for each rental contract, especially if operational or financial leasing is applied. Mandatory supporting documents include: rental/leasing contract, delivery-receipt report, tax invoices, and depreciation accounting notes. In the case of renting goods to individuals, the issuance of electronic invoices through the RO e-Factura system (under GEO 120/2021) and reporting in D406 SAF-T are required.

At the same time, declaration 394 must be submitted to ANAF for issued invoices, and if the rent is collected in advance, it is recognized over the contract period. Periodically check the VAT thresholds to avoid late registration for VAT purposes. I recommend consulting a certified accountant for the development of accounting policies and a specialized lawyer for drafting rental contracts, especially for termination and civil liability clauses.