7732

Procedure for authorization and Trade Register aspects for CAEN 7732

Setting up a company that will carry out activities of renting and leasing of construction machinery and equipment (CAEN code 7732) requires strict compliance with the registration procedure at the Trade Register (ONRC). The registration file must include the constitutive act, the affidavit according to Law 359/2004 regarding the registered office, and necessarily the main object of activity CAEN code 7732, without requiring prior approval from other institutions.

At the time of registration, no special operating permits are required; however, depending on the nature of the equipment (e.g., heavy machinery, pressure installations), subsequent checks by ISCIR or notifications to the Romanian Road Authority (ARR) may be required if transport on public roads is carried out.

For administrative tasks, the fiscal registration declaration (form 010) must be completed at the Tax Authority (ANAF), specifying the relevant secondary object (e.g., road freight transport, equipment maintenance). The fiscal vector will be established by the tax authority, implicitly including VAT and corporate income tax.

Regulatory framework, specific approvals, and control institutions

The main applicable normative act is Law 287/2009 on the Civil Code, which regulates lease (rental) and leasing contracts, supplemented by Government Emergency Ordinance 51/1997 on leasing operations. For construction equipment, specific technical standards apply (e.g., Government Decision 612/2003 on machinery safety).

Institutions with control roles include:

• Tax Authority (ANAF) – checks compliance with tax obligations, correct declaration of income, application of VAT (including reverse charge for leasing, according to art. 331 Fiscal Code).
• Labour Inspectorate (ITM) – controls compliance with occupational safety rules for employees who operate/use the equipment.
• Environmental Guard (GNM) – for waste generated by machinery (oils, filters), an environmental permit is required according to Law 104/2011.

In the case of financial leasing, contracts are registered with the Tax Authority (ANAF) to benefit from fiscal depreciation deduction; in operational leasing, the asset remains the property of the financer, and the lessee fully deducts the lease payments.

Tax management, ANAF audit risk, and specific accounting

From an accounting perspective, IAS 17 (or IFRS 16) applies for financial leasing, respectively OMFP 1802/2014 for operational leasing. Assets under financial leasing are recorded in account 213 (technological equipment) and depreciated according to the normal useful life. Income from rentals (operational leasing) or interest (financial leasing) is recorded based on contracts and issued invoices.

Major tax risks:

• Reclassification of operational leasing as financial leasing by the Tax Authority (ANAF), if the contract substantially transfers all risks and rewards of the asset (e.g., contract duration = 80% of useful life, derisory purchase option).
• Incorrect application of VAT: rent for spaces/equipment is exempt if immovable property, but mobile machinery and equipment is standard taxable (19%). For financial leasing, VAT applies to each installment invoiced.
• Deduction of maintenance and repair expenses – accepted only if justified with documents, and spare parts are invoiced separately.

We recommend preparing a transfer pricing file for transactions with related parties (rental to associated companies), as the Tax Authority (ANAF) checks the level of rentals compared to the market.

ANAF checks focus on:

• Declaration of rental income (account 706) and its correlation with contracts and invoices.
• VAT deduction on machinery acquisition – accepted only if the invoice bears the correct fiscal code and the asset is used for operational purposes.
• VAT registration threshold (300,000 RON) – exceeding it triggers the obligation to register for VAT purposes.

Implementation of the RO e-Factura system is mandatory for all issued invoices, including rentals and leasing advances. Non-compliance attracts fines between 5,000 and 10,000 RON, according to Government Emergency Ordinance 120/2021.

Practical recommendations:

• Periodically check updates to the Fiscal Code and ONRC regulations regarding CAEN classification.
• Keep separate records for each rental/leasing contract, with depreciation, interest, deductible/non-deductible VAT.
• Collaborate with a tax consultant to optimize taxation and minimize the risk of reclassification.