CAEN Code - Why you need it

Find out below how to choose the right code for your business!

What does "CAEN code" mean?

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The CAEN code (Classification of Activities in the National Economy) is a classification of
the types of activities you can carry out. This code is essential for businesses
operating in Romania, as it helps the state to keep track of the different activities
carried out by businesses in the country.

How do you choose your CAEN code?

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  1. Identify the economic activities carried out by the company

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These are the economic activities that can generate income in your business.

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  2. Establish a main activity and secondary activities

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The law allows you to carry out several economic activities. However, only one should be your main
, with its CAEN code on your registration certificate. The other activities,
can be considered secondary activities.

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How do you choose your main activity?

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The core business is the one you intend to focus on most or from which you
anticipate earning the most income.

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  3. Identify the corresponding NACE code

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Each activity has a corresponding CAEN code. You can look up the CAEN code for your business
in the CAEN Name Finder.

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It comprises 21 sections, divided into 272 groups with 615 classes (codes). Specifically, these
are classified as follows:

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  a) section - first level - comprises the title of the field of activity;
b) division - second level - is a two-digit numerical code;
c) group - third level - comprises a three-digit numerical code;
d) class - fourth level - is a four-digit numerical code - this is the final
CAEN code.

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*If you can't find an exact match, select the code that best describes
your company's business.

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  4. Check CAEN code restrictions

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When choosing the code that best describes your company's business, it is important to
be aware of any restrictions on the codes in each section. Thus, you should check:

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• prohibited codes;
• codes that can only be primary and not secondary;
• unique codes;
• codes with special requirements.

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5. Set authorised codes

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These can be authorised when the company is set up, or afterwards, and are in themselves the codes for which
the company is entitled to carry on business. CAEN codes must also
be authorised, either at third parties or at the registered office or place of business
.

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If you carry out economic activity without authorisation of CAEN codes?

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According to the law, this is punishable by a fine of between 2,000 and 20,000 lei. In
addition, any goods or money obtained from this activity will be confiscated.

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How many CAEN codes can you have?

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Every company must have one main CAEN code, but may have several secondary CAEN codes. However, some CAEN codes require special conditions to be met.

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In the case of authorised natural persons(PFA), they are entitled to 5 codes. However, they must
prove their competence in the field covered by the code by means of documents such as diplomas or
accredited courses.

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In the case of sole proprietorships (II), they may have 10 classes as set out in the
CAEN code.

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In the case of limited liability companies (SRL), they can have one main CAEN
but an unlimited number of secondary codes (all mentioned in the company's Memorandum
).

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Can CAEN codes be changed?

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You can change or add a CAEN code through updates to the Articles of Association, but you will need
the following documents:

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• Application for registration
• Act amending the Memorandum of Association
• Updated Constitution

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To ensure that all CAEN codes are up to date, all documents must
be up to date...

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Do you no longer know where you put all the crucial documents? Banqup solves this problem
quickly and easily!

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The Banqup platform simplifies the archiving process and reduces the time spent organizing
documents! With the platform, users can store all important financial
documents in one place - giving you more time for your business.

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