Wednesday, January 29, 2014

Establishing business activities for a Romanian company

Company formation procedures evidently include the identification of a primary and secondary object of activity which, in Romania, is regulated through the CAEN code system. Understanding the subtle intricacies revealed by this classification frequently determines the lucrative characteristics of a profitable business.

Any business approach which depends on establishing a company is always conditioned by the very first phase intended to decide its immediate purpose. In legal terminology this stands for confirming the principal object of activity or the primary business activity and, of course, all other secondary practices. There are several issues which need to be known by any entrepreneur who focuses on reaching the full potential of the business itself. In Romania, the system which statistically classifies economic activities is generally known as the CAEN codes. CAEN is an acronym which can be translated as “clasificarea activititatilor din economia nationala” representing an entire apparatus designed to build the foundation for preparing a large range of statistical data. The average entrepreneur is not obviously preoccupied with specific technicalities but running a business in the best possible way involves also being aware of multiple features related to NACE codes in Romania. Founding a lucrative company is always conditioned by a preparatory session supposed to establish if the primary activity to be conducted may guarantee core revenues, if this activity can be used only as primary or there is also the chance to shift it as secondary, if this feature must be used as sole and exclusive activity since the law imposes this regulation.

The primary activity of a company can play a highly important role in establishing taxes. Companies which derive their incomes from providing services related to business management consulting are to pay the standard profit tax of 16% and not the 3% income tax which applies to micro-companies. And thereby a strategic choice may help in saving some money. Certain activities may be performed only if they are indicated as principal business activities and here we can mention the temporary employment agencies. Some other companies must choose only one object of activity since they are not allowed by the law to perform any other different works and here we might add the detective agencies. These types of companies must also obtain some specific authorizations and licenses from the Trade Register.

The NACE codes in Romania provide a unique choice for the main business activity which means that each company has the opportunity to pick one single principal object which must be appointed when founding the enterprise. The secondary business activities come to deliver alternatives for certain establishments which intend to vary their performances. Establishing business activities for a Romanian company supposes the CAEN code registration which is not a demanding task but it might reveal certain ambiguities. It becomes essential to benefit from quality assistance while incorporating. Legal help widens perspectives and explains all possible options. Our team is always available for any disambiguation and we are committed to simplifying procedures implied by the company creation process. Understanding the economic climate and being closely familiar with each and every aspect concerning the legal system in Romania provides us with a comprehensive view on all features related to corporate and commercial issues. 

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