8720

Authorization procedure and Trade Register aspects for CAEN 8720

Setting up a company that will carry out activities of a mental recovery and detoxification center (CAEN 8720) involves completing the standard formalities at the Trade Register (ONRC), but with additional precautions. When registering, the “main activity object” section shall include code CAEN 8720, and for secondary objects, related codes may be associated (e.g., CAEN 8690 – other health activities). The articles of incorporation must comply with the requirements of Law 31/1990 and must not conflict with the sanitary authorization regime. Managing such a center requires, according to Law 95/2006, prior authorization from the public health directorate. Without this authorization, the activity cannot commence. At the Trade Register, a sworn declaration (Law 359/2004) is submitted stating that the operating conditions are met, but this does not remove the obligation to obtain the specific authorizations before actual start-up. If patient accommodation is also intended, an endorsement from the Inspectorate for Emergency Situations (ISU) will also be required.

Regulatory framework, specific approvals, and control institutions

Activities under CAEN 8720 are strictly regulated by Ministry of Health Order no. 1.303/2008 on mental recovery and detoxification centers, which sets standards for staff, space, and equipment. Also, Law 143/2000 on preventing and combating drug trafficking imposes additional conditions for centers treating addiction to prohibited substances. The main control is exercised by the Public Health Directorate, but also by the Tax Authority (ANAF) regarding fiscal aspects. There is no standard Trade Register approval for this class, but the sanitary operating authorization must be obtained beforehand. Additionally, the center must be registered in the Electronic Register of Social Service Providers if it addresses persons with mental disabilities according to Law 448/2006. For centers that administer medical treatments under the supervision of a psychiatrist, the sanitary operating authorization issued by the DSP is mandatory. The National Authority for Persons with Disabilities may be involved in the case of specialized social services.

Tax management, ANAF audit risk, and specific accounting

The fiscal starting point is registration with ANAF and obtaining the fiscal vector. Depending on the form of organization and income, one may opt for the micro-enterprise income tax system (if conditions under art. 47 of the Fiscal Code are met) or for profit tax. VAT: care services in recovery centers are exempt from VAT according to art. 292 para. (1) letter a) of the Fiscal Code, but only if provided by authorized entities. It is important to issue invoices with “exemption with right of deduction” or “exemption without right of deduction”, depending on circumstances. ANAF may initiate inspections regarding the fulfillment of exemption conditions. Specific registers: it is recommended to keep separate records of income from exempt medical services and taxable ones (e.g., accommodation or additional meals). Reporting obligations include declaration 394 and e-Factura for B2B operations, even if VAT does not apply. Accounting must comply with OMFP 1802/2014, with distinct accounts for specific fixed assets (medical equipment, beds, furniture). The main audit risk is the verification of the VAT exemption qualification and proper authorization. Substantial fines may be imposed if medical services are provided without a sanitary authorization, an offense sanctioned by Law 95/2006.