7731
Renting and leasing of agricultural machinery and equipment
This code covers the renting and leasing of agricultural machinery and equipment, including tractors, combine harvesters, seeders, and other machinery used in agriculture. Essentially, if you own such machinery and offer it to other farmers or companies for a fee, on a short-term or long-term basis, this is your code. However, it does not include operating the machinery yourself – that would fall under agricultural services.
Entrepreneur Profile
Acest cod este potrivit pentru SRL-uri, PFA-uri sau întreprinderi individuale care dețin utilaje agricole și doresc să le valorifice prin închiriere sau leasing. De asemenea, este util pentru firmele de leasing specializate în echipamente agricole sau pentru fermierii care își închiriază utilajele neutilizate altor fermieri.
Who should avoid:
Avoid the exclusive use of code 7731 if the main activity of your company shifts towards other commercial or related branches not specified in the official description. See the excluded activities section below.
Authorization procedure and Trade Register aspects for CAEN 7731
For registration with the Trade Register (ONRC) of an LLC or sole proprietorship having as main activity the CAEN code 7731, the single declaration is completed according to Law 359/2004. No prior approvals from line ministries are required, but the exact nature of the agricultural machinery and equipment (tractors, combine harvesters, seeders) must be specified. When submitting the application, the constitutive act or affidavit is attached, and the resolution period is 1-3 working days. The Trade Register may request clarifications if the activity name is not sufficiently explicit.
Regulatory framework, specific permits and control institutions
The main normative act is Government Emergency Ordinance 99/2000 on leasing, as amended. For financial leasing, registration as a leasing company with the National Bank of Romania is required; for operational leasing (rental), this authorization is not necessary. Leased agricultural machinery must comply with the technical standards of ISCIR and RAR, and rental contracts must be registered with the Tax Authority (ANAF) if they exceed 5,000 lei per contract (according to the Fiscal Code). The Labor Inspectorate controls working conditions for equipment operators. There is no special environmental permit, but waste management (oils, filters) is carried out according to Government Emergency Ordinance 195/2005.
Tax management, ANAF audit risk and specific accounting
For financial leasing, the asset is recorded in account 2133, and depreciation is calculated on a straight-line basis over the contract term. For operational leasing, the rent is recorded as an expense (account 611). In the case of simple rental, income is recorded in account 706. Invoicing is done with 19% VAT, and for individuals, the holiday voucher system may apply if the equipment includes accommodation. ANAF may initiate a thorough audit if repeated settlements between the same entities or undervaluation of contract duration to avoid VAT are detected. Monthly obligations include declaration 406 (RO e-Factura) for cash transactions, and at the end of the year, declaration 205 is submitted for rents paid to individuals. Deduction of equipment maintenance expenses is allowed only if documented by service contracts. For cross-border leasing, transfer pricing rules apply if the parties are affiliated. In the case of subcontracting agricultural works, it is recommended to conclude separate service contracts to avoid reclassification of the activity as "agriculture" (CAEN 0111).
Included Activities
- ✅ Renting and leasing of agricultural machinery and equipment (e.g., tractors, combine harvesters, seeders, plows, harrows, cultivators, harvesters)
- ✅ Renting of agricultural trailers and semi-trailers
- ✅ Financial and operational leasing of agricultural machinery
- ✅ Renting of crop maintenance equipment (sprayers, fertilizer spreaders)
- ✅ Renting of soil preparation and seeding machinery
Excluded Activities
- ❌ Renting of agricultural machinery and equipment with operator (this falls under code 0161 – Support activities to agriculture)
- ❌ Renting of construction machinery and equipment (code 7732)
- ❌ Renting of office machinery and equipment (code 7733)
- ❌ Real estate financial leasing (code 6810)
- ❌ Sale of agricultural machinery and equipment (code 4661)
- ❌ Repair and maintenance of agricultural machinery (code 3312)
Similar or Related CAEN Codes:
From the same category of economic activities:
Întrebări Frecvente
Do I need a special authorization to rent agricultural machinery?
No, no special authorization from the state is required for renting agricultural machinery. You only need to have the CAEN code 7731 registered with the Trade Register and comply with fiscal obligations (declarations, VAT if you are a payer, etc.).
Can I rent agricultural machinery to individuals as well?
Yes, you can rent agricultural machinery to both legal entities and individuals. The rental contract must be clear and specify the terms, price, and liability for damages.