8424

Authorization procedure and Trade Register aspects for CAEN 8424

Setting up a company that selects CAEN 8424 as its main activity requires compliance with specific formalities at the Trade Register (ONRC). CAEN code 8424 covers public order and civil protection activities, including private security services, emergency intervention, monitoring centers and dispatching. When submitting the registration application, the associates submit a sworn statement according to Law 359/2004, confirming that the planned activity meets the legal operating conditions. To obtain operating authorization, the company must obtain approval from the Romanian Police and, where applicable, from the Inspectorate for Emergency Situations. Also, the administrators and key personnel must be graduates of specialized courses recognized by the Ministry of Internal Affairs and have no incompatible criminal record. The authorization procedure at the Trade Register includes verification of the registered office, which must meet minimum security and access requirements. Without police approval, registration is suspended until clarification. The company must also submit the fiscal vector declaration – form 060, for establishing the initial tax regime.

Regulatory framework, specific approvals and control institutions

Public order and civil protection activity is strictly regulated by Law No. 333/2003 on the protection of objectives, goods, valuables and persons, as well as by Government Decision No. 301/2005 on the authorization of security companies. Depending on the type of service provided, the company may fall under Law No. 481/2004 on emergency situations. The main control institutions are the Romanian Police – through its authorization and control structures, and the General Inspectorate for Emergency Situations. Companies operating under CAEN 8424 must hold a license from the Ministry of Internal Affairs, initially valid for 5 years, renewable periodically. Additionally, operational staff must be professionally certified, and the company must have civil liability insurance and, if using weapons, a weapons permit. Non-compliance leads to substantial fines and suspension of the operating authorization. Controls are unannounced, and personnel documents, medical and psychological certificates must be kept at the premises. Any change in the shareholder structure or directors must be notified to the competent authorities within 15 days.

Fiscal management, ANAF audit risk and specific accounting

From a fiscal perspective, companies operating under CAEN 8424 are subject to corporate income tax of 16% (or income tax for micro-enterprises, if they meet the turnover and personnel conditions). Invoicing of services must be carried out according to the RO e-Factura system, and reporting is done through declarations 394 and 406. The Tax Authority (ANAF) prioritizes control over undeclared income from security contracts and personnel management – many companies resort to subcontracting or service provision with unjustified deductions. During an audit, inspectors check the correct classification of employees, payment of social security contributions and compliance with the minimum wage. Expenses for security equipment (uniforms, alarm systems, cameras, weapons) are deductible if properly documented. VAT applies at the standard rate of 19%, except for civil protection services which may benefit from reduced rates in certain emergency situations. Filing the single declaration on estimated income is mandatory for administrators, even if the activity does not yet generate income. We recommend preparing a preventive audit file containing all approvals, licenses and service contracts. Any contradiction between commercial contracts and tax reports constitutes a major risk of sanctions.