8520

Authorization procedure and Trade Register aspects for CAEN 8520

Setting up an entity with CAEN code 8520 (Primary education) requires going through the standard steps at the National Trade Register Office (ONRC), noting that this activity falls under the National Education Law No. 1/2011, which requires obtaining additional operating authorizations before registration. When submitting the application to the ONRC, a sworn statement is completed in accordance with Law 359/2004 on fulfilling the legal operating conditions. For joint-stock companies or LLCs, the main object of activity will be registered as "Primary Education". The legal structure can be an LLC, JSC, NGO, or sole proprietorship, but in practice, private schools typically operate as limited liability companies or associations/foundations. An essential aspect is that the activity can only be carried out after obtaining a provisional operating permit from the Ministry of Education, and the final operating authorization is issued after verifying the conditions regarding space, staff, and curriculum.

Regulatory framework, specific approvals, and control institutions

The field of primary education is strictly regulated by the Ministry of Education through the County School Inspectorates. Establishing a primary education unit requires obtaining a provisional operating authorization, granted for a maximum of 3 years, followed by school accreditation after meeting the standards. The main conditions concern: spaces (classrooms, laboratories, medical office according to hygiene standards approved by the Ministry of Health), qualified teaching staff (teachers with specialized higher education, registered in the national register), accredited curriculum, and specific equipment. Operational control is exercised by the School Inspectorate, the Tax Authority (ANAF) (for tax verifications), and the Public Health Directorate. Additionally, a fire safety authorization from the Emergency Situations Inspectorate (ISU) is mandatory. Lack of authorizations attracts contraventional sanctions and even suspension of activity.

Tax management, ANAF audit risk, and specific accounting

From a tax perspective, companies carrying out CAEN 8520 activity may opt for profit tax (16%) or micro-enterprise income tax (1% or 3% depending on the number of employees and revenues), provided the legal thresholds are met. Value Added Tax (VAT) applies at the standard rate of 19% for education services, but with the possibility of applying VAT exemption under Article 292 of the Fiscal Code if the unit is accredited and operates based on the ministry's authorization. It is crucial to carefully analyze the exemption conditions, as incorrect interpretation entails the risk of VAT adjustment during audits. Periodic tax declarations include: Declaration 100 (VAT), Declaration 101 (profit tax) or 102 (micro-enterprise tax), Declaration 112 (social contributions). ANAF may conduct tax inspections on the reality of revenues (use of cash registers and issuance of fiscal receipts) and the legality of expense deductions (e.g., expenses for teaching materials, rents, salaries). Specific accounting involves separate recording of income from tuition fees, state subsidies (if any), and expenses for teaching and auxiliary staff. We recommend using a certified accountant with experience in the educational field for correct management of supporting documents and compliance with applicable accounting regulations.