8710

Authorization procedure and Trade Register aspects for NACE 8710

The authorization for operating under NACE 8710, which covers the activities of medical care centres, involves a strict bureaucratic process controlled by the Trade Register (ONRC) and the health authorities. When registering with the Trade Register, constitutive documents (articles of incorporation, partnership agreement) must be submitted, including the main object of activity exactly according to NACE Rev. 2: "Activities of medical care centres". Additionally, Law 359/2004 requires a sworn declaration stating that the registered office meets the legal conditions – proof of the right of use (lease agreement, land register extract) is mandatory. The ONRC only verifies formal legality, not the substance; subsequently, a sanitary operating authorization must be obtained from the Public Health Directorate (DSP). For centres with inpatient care (e.g., nursing homes, care homes), approvals from the Emergency Situations Inspectorate (ISU), DSP and, if applicable, the National Authority for Consumer Protection (ANPC) are required. Without these approvals, operation is illegal and may result in contraventional or criminal sanctions.

Regulatory framework, specific approvals and control institutions

The main normative act is Law 95/2006 on health reform, together with Order of the Ministry of Health no. 856/2011 for medical care centres. Control is primarily carried out by the Public Health Directorates (DSP), but also by the Territorial Labour Inspectorate (ITM) for labour standards, ISU for fire safety compliance and ANPC for consumer protection. Centres must meet minimum standards for staff (doctors, nurses, caregivers), space (minimum 6 sqm per bed), equipment (ventilation, sanitary facilities, medical equipment). According to orders issued by the Ministry of Health, medical care centres are subject to periodic thematic inspections (annual or quarterly) by the DSP. Non-compliance leads to suspension or withdrawal of the authorization. The territorial structures of the Tax Authority (ANAF) conduct fiscal controls, especially regarding the correctness of issuing invoices and reporting in the RO e-Factura system for services provided.

Tax management, ANAF audit risk and specific accounting

From a fiscal perspective, NACE 8710 is subject to VAT (standard rate 19%), but there are VAT exemptions for hospital and medical care services under Article 292 of the Fiscal Code (exempt without deduction right). However, this exemption is not automatic: services must be provided by an authorized centre with qualified medical staff and must be actual medical care (treatment, rehabilitation, monitoring). Simple social assistance activities (e.g., accommodation, meals) may be taxable. ANAF may reclassify transactions if it considers them to be essentially accommodation services with minimal care – a major risk of VAT adjustment. Specific accounting requires separate recording of expenses for medical staff, medicines, medical supplies and depreciation of equipment. In the case of private institutions, contracting authorities (health insurance houses) require detailed monthly invoices, and any reporting error may lead to suspension of payments or recovery of amounts. Regarding corporate income tax, the general rate of 16% applies, with the possibility of applying the exemption for reinvested profit (under the Fiscal Code). A key tax risk is the subsidization of revenues: many centres are funded through contracts with the state (e.g., DGASPC, CJAS) – these revenues are taxable, and correct recording of subsidies requires specific accounting treatment (under Order of the Minister of Public Finance no. 1802/2014). ANAF conducts in-depth checks on the reality of services, requesting observation sheets, staff schedules and time sheets.