8899

Authorization procedure and Trade Register aspects for CAEN 8899

Setting up a company with the main activity object CAEN 8899 primarily involves registration with the Trade Register (ONRC). When submitting the application, the activity "8899 - Other social assistance activities without accommodation, n.e.c." is expressly stated. The associate or shareholder submits a sworn declaration in accordance with Law 359/2004, certifying compliance with the legal operating conditions, including those specific to social services. No prior approvals are mandatory for registration. Subsequently, the company must request the Registration Certificate, equip itself with digital certificates, and register with the Tax Authority (ANAF) to obtain the Unique Registration Code (CUI). At the time of fiscal registration, the fiscal vector is submitted, and the activity is declared as subject to corporate income tax or micro-enterprise income tax, if the threshold conditions are met (Articles 47-51 of the Fiscal Code).

Regulatory framework, specific approvals, and control institutions

Licensing and quality standards

Although CAEN 8899 does not require a mandatory fire safety or sanitary authorization at the general operation level, the actual provision of social services triggers the application of the Social Assistance Law no. 292/2011 and Law no. 197/2012 on quality assurance in the field of social services. Social service providers are obliged to request licensing/authorization from the Ministry of Labor and Social Solidarity – the National Authority for the Protection of Persons with Disabilities, Children and Adoptions, respectively from the territorial social assistance directorates, according to the Minimum Quality Standards (Order no. 29/2019). Non-compliance with these standards results in contravention sanctions and suspension of activity.

Control institutions

In addition to the Tax Authority (ANAF) and the Labor Inspectorate (ITM), operational control is exercised by the National Authority for the Protection of Persons with Disabilities, Children and Adoptions, the National Agency for Payments and Social Inspection, as well as local police structures. Inspections target compliance with beneficiaries' rights, personnel standards, internal documentation, and financial reporting.

ISU and DSP approval

If the activity involves enclosed spaces where day services are provided, obtaining the fire safety approval (ISU) and the sanitary operating authorization (DSP) is mandatory, according to Law no. 307/2006 and the Ministry of Health Order no. 119/2014. The premises must meet hygiene, accessibility, and safety standards.

Tax management, ANAF audit risk, and specific accounting

Tax regime and reporting obligations

Companies carrying out social assistance activities without accommodation may benefit from an exemption from corporate income tax on reinvested profits (Article 22 of the Fiscal Code) and, under certain conditions, may apply the reduced VAT rate of 5% for social services (Article 291(3)(c) of the Fiscal Code). It is essential to analyze service provision contracts with local authorities – financing from the state budget or European funds – to correctly determine the VAT base. If services are provided within subsidized social service supply contracts, the exemption with the right of deduction (Article 294(1)(a) of the Fiscal Code) may apply.

ANAF audit risks

ANAF control objectives include: verifying how corporate/income tax is determined, analyzing expenses related to service provision contracts (personnel, subsidies, donations), and the VAT deduction method. The audit risk is high if the company does not issue electronic invoices through the RO e-Factura system for B2B transactions (Order no. 69/2024) or does not submit tax returns on time (D100, D101, D394). Furthermore, failure to register in the Unique Register of Social Services (RUSS) results in the suspension of activity and reclassification of revenues as non-deductible.

Accounting and human resources

Accounting must distinctly record revenues from subsidies, donations, sponsorships, and contracts with clients – individuals or legal entities. Employed staff (social workers, psychologists, caregivers) must hold qualifications required by legal norms, and employment contracts must be registered in Revisal. Salary expenses may be capped depending on the funding source – specific rules for using public funds. We recommend drafting an internal procedures manual for archiving supporting documents: time sheets, attendance sheets, activity reports.