7734

Authorization Procedure and Trade Register Aspects for CAEN 7734

Setting up a company that will carry out the activity of renting and leasing water transport equipment involves going through the standard procedures at the Trade Register (ONRC), with specific mentions regarding the object of activity. Upon registration, the inclusion of CAEN code 7734 as a main or secondary object will be requested, depending on the tax strategy. For legal entities, the constitutive act must include the exact description of the activity, according to the Classification of Activities in the National Economy. The affidavit under Law 359/2004 will certify the fulfillment of the legal operating conditions, without requiring prior authorizations issued by other institutions, except in cases where the vessels are used for commercial transport of goods or persons, in which case the specific regime under Government Ordinance 42/1997 applies.

Regulatory Framework, Specific Approvals and Control Institutions

The activity of renting and leasing water transport equipment is not subject to general prior approvals, but regulations on vessel safety and environmental protection must be observed. For the vessels used, the provisions of the Romanian Naval Authority (ANR) regarding certification and periodic technical inspections apply. In the case of renting pleasure craft, Government Ordinance 21/2002 on water management and Law 107/1996 apply, with inspections by the National Administration 'Romanian Waters'. Control institutions include the Environmental Guard, the Inspectorate for Emergency Situations (ISU) (for fire safety measures) and the National Authority for Consumer Protection, if the services are directly addressed to consumers. Financial leasing contracts must be registered with the Tax Authority (ANAF) according to the provisions of the Fiscal Code, and long-term rental contracts may require notarial authentication, depending on the value.

Tax Management, ANAF Audit Risk and Specific Accounting

From a tax perspective, income from rentals and leases falls within the tax base for corporate income tax or income tax, as applicable. ANAF monitors transactions through the RO e-Factura system for B2B operations, and issued invoices must comply with the standardized format. Financial leasing requires recognition of assets and liabilities in the balance sheet, with deduction of depreciation calculated according to the normal useful life. Simple rental is accounted for as income from services, with monthly invoicing and collection of VAT at 19% (or 9% for pleasure craft, if the reduced rate applies). There is a risk of ANAF audit in case of underreporting of income or non-compliance with leasing conditions, such as the minimum period of 1 year for deducting expenses. Specific accounting involves individual records for each vessel, with fixed asset or inventory sheets, as applicable. The monthly D300 return and VAT settlement are completed with the operations carried out, and at the end of the year, the D100 return for corporate income tax is submitted. For micro-enterprises, one may opt for income tax, subject to the turnover threshold of 500,000 euros.