Introduction to the changes of the Nace-codes in Romania

In 2025, it is legally mandatory for Romania to update their NACE Codes. This is a necessary action that must be taken.

The NACE codes in Romania will undergo major modifications starting from January 1, 2025, which will have a significant impact on businesses throughout the country.

It has been brought to our attention that the NACE codes will undergo a third revision due to some changes happening at the European level.

The updating of the Nomenclature of Economic Activities (NACE) codes in Romania is not just a routine administrative task, but a reflection of the country's efforts to adhere to European standards in its economic practices. These revisions are a response to the changing economic landscape and technological developments. In this article, we will discuss the repercussions of these modifications, the importance of complying with them, and the actions that businesses need to take in order to adjust successfully.

Businesses are required to record the modifications, and for many of them, a fresh certificate of registration will be provided.

After analyzing my own situation, it is clear that the updated codes are impacting my company. I am required to modify the primary activity number and update the codes for secondary activities that were previously registered with ORNC. This will involve a significant amount of work, including organizing a shareholders meeting to discuss the changes, making a decision at the meeting, and registering the decision with the amended "acta constitutive" (by-laws). Once this is completed, ORNC will provide a new certificate de inregistrare reflecting the changes made to the main activity codes with the revision 3 of the CAEN codes.

Allow me to elaborate further on the steps to make these modifications.

Comprehending NACE Codes

The NACE codes function as a structured categorization of economic activities, primarily utilized for statistical analysis and administrative guidelines. These codes play a crucial role in:

• Identification: These assist in the recognition of the particular actions that a business is involved in, enabling precise gathering and examination of data. Companies are required to disclose their NACE codes when registering, which can impact their taxation, licensing, and eligibility for government incentives.
• At both national and international levels, the use of these classifications is crucial for financial reporting and statistical analysis.
• The update of NACE codes is designed to accurately reflect the current economic landscape, ensuring that businesses are classified according to their real operations.

The third version of NACE codes has been revised.

The latest edition of NACE codes brings about significant alterations that will have an effect on enterprises in Romania. This modification is a reaction to the constantly evolving globalization and digitalization trends, which have transformed various industries and resulted in the emergence of new economic activities that were not previously considered.

Significant Revisions in NACE Rev 3

1. Reassigning Codes: Certain codes will maintain their names but will be given different numbers, while others will be given new names but retain their current numbers. This double modification may cause confusion, emphasizing the importance for businesses to stay updated.

2. Revised Classifications: Sectors such as information technology, renewable energy, and e-commerce are anticipated to undergo major revisions in their classifications. The aim is to adapt to emerging industries and novel approaches.

3. Reducing Repetitive Codes: Some codes can be eliminated or combined to simplify the classification system and make it more applicable to present market conditions.

Impact on Businesses

The impact of the revisions of the NACE code has wide-reaching effects. Businesses must evaluate their existing classifications and confirm if they are in accordance with the updated codes. This process may entail:

• Modifying Company's Charter: Enterprises are required to make alterations to their articles of incorporation in order to accurately reflect any updates in their NACE codes.
• Verification of Compliance: It is essential for businesses to ensure that their actions are in accordance with the updated classifications in order to avoid facing penalties.

The Significance of Adhering to Regulations

Complying with the updated NACE codes is not just a legal requirement; it is crucial for upholding operational honesty and guaranteeing qualification for different advantages.

Impact of Failure to Comply

1. Tax Considerations: Failure to comply with the updated regulations may result in being excluded from specific tax systems or losing eligibility for tax benefits.

2. License Problems: Failure to update NACE codes can result in companies operating without the proper licenses, which could lead to penalties or the halting of business operations.

3. Legal Consequences: Failure to comply with regulations can place businesses at risk of legal consequences, such as criminal charges being brought against company representatives.

Guidelines for Ensuring Adherence

In order to effectively navigate the landscape of compliance, it is important for businesses to:

• Perform a Comprehensive Evaluation: Examine the present NACE codes and operations in order to pinpoint any inconsistencies.
• Seek Advice from Legal Professionals: Seeking guidance from legal professionals who specialize in business law can offer clarity on any required modifications and responsibilities for compliance.
• Timely Implementation of Modifications: It is important for companies to give priority to promptly revising their articles of incorporation and other relevant documents in order to reflect the updated classifications.

Getting Ready for the Change

With the deadline for NACE code updates approaching, it is crucial for businesses to take proactive measures in order to be prepared for the transition.

Implementation Schedule

Prompt Assessment: Initiate examinations and evaluations at the earliest opportunity to provide enough time for necessary modifications.

Updates to Documentation: The goal is to complete all revisions to the documentation well in advance of the deadlines.

Stay updated on any new updates or clarifications from regulatory authorities regarding the revisions of the NACE code by monitoring changes.

The Importance of Legal Aid

Seeking legal assistance is highly recommended due to the complexities associated with updating NACE codes.

Economic Situation and Alignment with Europe

The modifications made to the NACE codes in Romania are a component of a larger initiative to harmonize with European norms and adapt to worldwide economic patterns.

The revisions of NACE have been influenced by Europe.

Standardization efforts have been prompted by the European Union's push for uniform classifications, which aim to improve data collection and analysis among member states.

In the modern world, companies are expanding their operations on a global level, making it essential to synchronize national classifications with international standards in order to maintain competitiveness.

The emergence of digital technologies and novel business models calls for a reassessment of how economic activities are classified.

We are capable of completing the task on your behalf.

We have the capability to assist you with this task, as we are currently providing this service to all of our clients. Contact me by email at frjacobs@telenet.be or give me a call at +32 478 331 799.