8891

Authorization procedure and Trade Register aspects for CAEN 8891

For setting up a company that carries out daily childcare activities (CAEN 8891), the first step is the legal incorporation at the Trade Register (ONRC). The choice of legal form (SRL, SRL-D, SA, PFA, II, IF) must consider the nature of social services. When submitting the file, the affidavit under Law 359/2004 regarding the authorization of operation is completed, specifying CAEN class 8891 as main or secondary activity. It is mandatory to register the registered office and work points during the procedure, and at the Trade Register (ONRC) an excerpt certificate issued by the Commercial Register is submitted, attesting that the premises meet the operating conditions (e.g., ISU approval, sanitary approval, etc.). Also, the fiscal vector must be registered within 30 days of registration, by submitting the Fiscal Registration Declaration (form 010) to the Tax Authority (ANAF). For PFA/II/IF, the Single Declaration is submitted.

Regulatory framework, specific approvals and control institutions

Nursery or after-school activities (CAEN 8891) are considered social services and fall under Law no. 272/2004 on child protection, as well as Law no. 197/2012 on quality in social services. The competent authority is the County Agency for Payments and Social Inspection (AJPIS) under the Ministry of Labor. For operation, it is necessary to obtain the Operating License as a social service, granted by AJPIS, which requires compliance with minimum quality standards (approved by Order no. 275/2023). Specific approvals include: sanitary operating approval issued by the Public Health Directorate (DSP), fire safety approval from the Inspectorate for Emergency Situations (ISU), and, where applicable, an operating permit from the City Hall (construction/demolition permit if the space is being set up). Staff must meet qualification conditions (at least secondary education in pedagogy/psychology/social work, and for educators, specialized higher education). Current control is carried out by AJPIS and the National Authority for Consumer Protection (ANPC).

Tax management, ANAF audit risk and specific accounting

From a tax perspective, CAEN 8891 may benefit from a reduced VAT rate of 5% if the services are provided within the social protection system (see Fiscal Code, art. 291 para. (2) letter e) – services provided by authorized nurseries and after-school centers). If conditions are not met (e.g., lack of license), standard VAT of 19% applies. Profit tax is calculated at 16%, and micro-enterprises (SRL) may opt for 1% on revenue, provided they have at least one employee. Employees are hired based on individual employment contracts, and for each child, tax deductions (for food, teaching materials) may be available. Major risk of ANAF audit: underreporting of income (cash payments without fiscal receipt), failure to register employees, incorrect application of the 5% VAT rate (if no license, ANAF may recalculate VAT payable plus accessories). Accounting must reflect deductible expenses separately: salaries, rent, utilities, food, educational materials, equipment depreciation. Strict records of operating hours and number of children are recommended to support potential cost deductions. Use of the RO e-Factura system is mandatory if invoices are issued to legal entities (e.g., contracts with city halls or parents benefiting from vouchers). For PFA, the real taxation system applies (16% income tax + CASS and CAS) or the income norm, if the locality permits it.