9700

Authorization procedure and Trade Register aspects for CAEN 9700

Opening an entity operating under CAEN 9700 – “Activities of private households as employers of domestic personnel” – involves a specific administrative process, distinct from that of classic commercial companies. According to Law no. 359/2004, the authorized natural person (PFA) or individual enterprise (II) wishing to declare this CAEN code must submit to the Trade Register (ONRC) a declaration on their own responsibility regarding the fulfillment of the legal operating conditions. No prior approvals from other institutions are required, as the activity does not involve special environmental or public health risks. Upon registration, the standard form (application) is completed, accompanied by the identity document, proof of registered office (loan contract, lease, or property title), and, where applicable, the fiscal record certificate. It is essential that the main object of activity is clearly stated as “Activities of private households as employers of domestic personnel”, and that CAEN code 9700 is the main one (if this activity is intended exclusively). The authorization procedure at the Trade Register usually takes 1-3 working days, and the costs are modest (registration and publication fees in the Official Gazette).

Regulatory framework, specific approvals and control institutions

The activity of employing domestic personnel is governed by the Labor Code (Law no. 53/2003) and Emergency Ordinance no. 118/2021 on day laborers, where applicable. The employer – whether a natural person or an entity – is required to conclude individual employment contracts for domestic staff (nannies, housekeepers, caregivers) and register them in REVISAL within 20 days of commencing activity. No special operating approvals from the Tax Authority (ANAF) or ITM are required prior to starting the activity, but subsequent inspections are frequent. The Territorial Labor Inspectorate (ITM) checks compliance with occupational safety and health (OSH) regulations and the legality of contracts. ANAF carries out verifications regarding the correct declaration of income and withholding of taxes. No sanitary-veterinary authorization or other specific permit is necessary, except when domestic staff perform care activities for dependent persons, in which case social assistance legislation applies.

Tax management, ANAF audit risk and specific accounting

From a fiscal perspective, the entity declaring CAEN 9700 is treated as an authorized natural person employer/individual enterprise. Tax obligations include: withholding income tax (10%) from the salaries of domestic staff, social insurance contributions (CAS) and health insurance contributions (CASS), as well as the work insurance contribution (CAM) – 2.25%. Payments are made monthly by the 25th of the following month, via the 112 declaration (declaration regarding payment obligations). Additionally, the employer submits an annual Single Declaration (Form 212) for income from independent activities (if the entity does not only pay salaries to domestic personnel). The risk of an ANAF audit is high in case of undeclared employment contracts or payment of “under the table” salaries. Accounting is kept on a real basis, using supporting documents (payrolls, invoices, receipts). It is mandatory to issue fiscal records (certificates) for domestic staff upon termination of employment. To minimize the risk of inspection, it is recommended to use the RO e-Factura system for issuing invoices to beneficiaries (if any service contracts with third parties exist) and to maintain a written record of hours worked.