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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