8552

Authorization procedure and Trade Register aspects for CAEN 8552

Setting up a company with the main activity of CAEN code 8552 – Education in the cultural field (music, theater, dance, visual arts, etc.) involves going through the registration stage with the Trade Register (ONRC) in compliance with the provisions of Law 31/1990. When filing the registration application, a sworn statement is completed according to Law 359/2004, whereby the administrator declares that the activity does not require prior operating authorizations, in case no related regulated services are provided (e.g., if no toxic substances are handled or no activities with the public that require an ISU approval are carried out). However, in practice, most cultural centers operate in enclosed spaces with the public, which entails the obligation to obtain a fire safety authorization. The constitutive documents are submitted to ONRC, and the main activity must be stated exactly according to the Classification of Activities in the National Economy – CAEN Rev. 2. It is recommended to also include related secondary activities (e.g., 9001 – Performing arts, 9002 – Support activities to performing arts).

Regulatory framework, specific approvals, and control institutions

From a legal perspective, CAEN 8552 falls under the category of cultural educational services and is not subject to authorization by the Ministry of Education unless it issues state-recognized study documents. In the absence of accreditation, the activity is considered non-formal education. Control is carried out by the County Directorate for Culture (according to Government Emergency Ordinance 118/2006) and by the Tax Authority (ANAF) for compliance with the fiscal regime. If activities take place in spaces with the public, ISU authorization and DSP (Public Health Directorate) approval are mandatory. Also, for organizing events with children, the provisions of Law 272/2004 on the protection of minors must be observed, and a criminal record for staff must be obtained. In case of using musical instruments or sound equipment, noise pollution regulations apply (Law 121/2019).

Fiscal management, ANAF audit risk, and specific accounting

Companies carrying out activities in the CAEN 8552 field are subject to profit tax (16%) or micro-enterprise income tax (1% or 3% of income, depending on the number of employees). Income may come from participation fees, subscriptions, ticket sales, sponsorships. For services provided to individuals, the RO e-Factura system applies from July 1, 2022 (according to Government Emergency Ordinance 120/2021). Invoicing to legal entities is done with VAT (if the company is a VAT payer). In the case of organizing courses lasting less than 3 months, income is recognized at the time of provision; for courses or subscriptions with a longer duration, the accrual accounting principle applies (account 472 – Deferred income). The risk of an ANAF audit is medium to high, especially for verifying the correct classification of income (whether it might be considered dependent activities) and deductible expenses (e.g., rent for the space, fees for collaborating teachers). It is recommended to draw up clear collaboration contracts with instructors (PFA or SRL) and to keep separate records of protocol and sponsorship expenses. Also, for employed teachers, the 112 declaration is submitted, and for collaborators, the 205 declaration is issued. Do not forget the fiscal vector upon establishment and the obligation to submit declaration 394 for transactions involving invoices.