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Romania – NACE Classification Changes for 2025
In a move to align with European standards and adapt to economic changes, the Romanian government has approved updates to the Nomenclature of Economic Activities (NACE) codes.
As of the 1st of January 2025, NACE Rev. 3 is now in effect and applies to all companies operating within Romania.
Background
On the 25th of April 2024, the National Institute of Statistics published Order No. 377 in the Official Gazette of Romania. This order outlines the updates to the classification of economic activities in the national economy and introduces NACE Rev. 3.
Key Changes
While the fundamental classification rules from NACE Rev. 2 remain intact, NACE Rev. 3 brings several notable modifications:
- Some NACE codes retain their names but have new numbers
- Others keep their numbers but have updated names
- Certain codes have been expanded into multiple, more detailed classifications
- Some codes have been consolidated
Steps for Compliance
Companies should take the following actions:
1. Review applicable NACE codes and identify changes between Rev. 2 and Rev. 3
2. Update NACE codes as necessary
3. Convene a General Meeting of Shareholder(s) to approve changes
4. Update the company’s Articles of Association
5. Submit the Resolution of the General Meeting of Shareholders and the updated Articles of Association to the Trade Registry
The Risks of Non-Compliance
Failure to update NACE codes can lead to several issues:
1. Tax Implications: Potential exclusion from specific tax regimes or loss of eligibility for valuable tax incentives.
2. Licensing Troubles: Risk of operating without necessary licenses, leading to fines, sanctions, or forced business closures.
3. Legal Liabilities: Exposure to significant legal risks, including potential criminal charges against company representatives.
For further assistance or questions regarding the NACE code updates, please contact mercator@citco.com.
