9020

Authorization procedure and Trade Register aspects for CAEN 9020

For registration with the Trade Register (ONRC) of a company that will carry out activities corresponding to CAEN code 9020 – “Activities of artistic performance (shows)”, the main object of activity must be inserted in the constitutive act exactly according to the nomenclature. No prior operating authorization from ONRC is required, but the registered office and work points must be declared to the Trade Register (if performances take place in third-party locations, a loan or lease contract may be concluded). The legal entity must submit a sworn statement in accordance with Law 359/2004 regarding the fulfillment of operating conditions. There are no special restrictions on minimum share capital, but an adequate capital is recommended for the acquisition of equipment (sound, lighting, instruments) and for the payment of royalties.

Companies that include related activities (show organization, artistic production) may opt to include additional CAEN codes: 9321 (fair and amusement parks) or 9329 (other recreational activities). For registration with ONRC, the contract, constitutive act, proof of registered office and payment of fees are sufficient.

Regulatory framework, specific approvals and control institutions

The main normative act regulating artistic performance activities is Government Ordinance no. 21/2007 on institutions and show companies, republished, and Law no. 8/1996 on copyright and related rights. When organizing shows, the written consent of the author or copyright holder (e.g. UCMR-ADA, UAR, DACIN-SARA) and payment of royalties through collective management organizations are required.

For shows held in indoor or outdoor spaces, it is necessary to obtain a fire safety clearance from the Inspectorate for Emergency Situations (ISU) and an operating authorization from the Mayor’s Office (construction/demolition authorization for temporary setups). In the case of events with a large audience (over 200 persons), an organization permit from the local mayor’s office and, possibly, an approval from the Show Approval Commission are required. Artistic performance activities do not require special sanitary authorization, but the spaces where they take place (performance halls) must comply with hygiene standards. The main control institutions are: the Mayor’s Office (for operating and organization permits), ISU, the Territorial Labour Inspectorate (ITM) – for compliance with labour standards, and the Tax Authority (ANAF) – for tax matters.

Tax management, ANAF audit risk and specific accounting

For artistic performance activities, the standard taxation system is profit tax (16%) or, if annual revenues are below EUR 500,000, one may opt for micro-enterprise income tax (1% on revenues up to EUR 500,000, 3% above). Registration in the VAT register is mandatory if turnover exceeds RON 300,000 (exempt threshold) or optional registration may be chosen. Optional registration is recommended if expensive equipment with deductible VAT is purchased.

Invoicing is generally done in the RO e-Factura system for B2B relationships, while for individuals a fiscal receipt (cash register) or a simple invoice may be issued. It is important to correctly classify contracts: if copyright is involved, the specific fiscal operation code (COF) shall be used, and income from copyright is subject to withholding tax (10% income tax and 25% social security contributions).

Specific accounting highlights inventories (equipment, instruments), expense accounts (depreciation, rents, royalties, transport, promotion). Revenues are recognized at the time of the performance, on an accrual basis. Audit risk by ANAF exists regarding: the tax treatment of copyright (if not correctly declared), compliance with the VAT registration threshold and electronic reporting obligations. During unannounced inspections, inspectors verify the existence of ISU permits and documents proving payment of royalties. Non-compliance entails fines of up to RON 50,000 for legal entities.