Mandatory NACE Codes Update for Romanian Entities from CAEN Rev 2 to CAEN Rev 3

 

What Are NACE Codes?

 

NACE codes (Nomenclature of Economic Activities) are standardized classifications used across Europe to categorize businesses based on their economic activities. These codes are essential for statistical analysis, taxation, and regulatory compliance. In Romania, the national equivalent is CAEN codes (Classification of Economic Activities / Clasificarea Activităților din Economia Națională), which closely follows the EU’s NACE system.

 

The upcoming transition to NACE Rev 3 and CAEN Rev 3 in Romania represents a significant update aimed at better reflecting the modern economy, including advancements in technology, environmental sustainability, and emerging industries.

 

Why Is NACE Being Updated?

 

The last major revision, NACE Rev 2, was introduced in 2008. Since then, economic activities have evolved significantly, and new industries have emerged. Key drivers behind the update include:

 

• Modernizing classifications: Incorporating activities related to technology, digital transformation, and renewable energy.

• Aligning with EU taxonomy: Enhancing transparency for sustainability reporting.

• Improving accuracy: Offering clearer definitions and updated activity groupings to avoid ambiguities.

 

The NACE codes revision reflects the need to keep pace with emerging economic and technological trends, generating new activities and products that surpass the relevance of existing ones.

 

Key Changes in NACE Rev 3

 

On 31 December 2024, the Romanian National Office of the Trade Registry issued guidelines for updating the activity details of companies, in line with the new NACE Rev. 3 statistical classification. Additionally, the Trade Registry released a correspondence table that maps NACE Rev. 2 codes to NACE Rev. 3, highlighting sub-segmentations and aggregations of the previous NACE codes.

 

This NACE update applies to both the main and secondary business activities of companies and became effective on 1 January 2025. Businesses are encouraged to refer to the NACE codes list and utilize the NACE code lookup tool to ensure compliance with the updated NACE industry classification. For accurate identification, companies can use the NACE code finder or NACE code company lookup for the relevant NACE code meaning. This update is essential for proper NACE classification and ensuring alignment with the EU taxonomy NACE system.

 

The move from NACE Rev 2 to NACE Rev 3 brings several changes that Romanian companies need to understand:

 

1. New Classifications: introduction of categories for emerging industries like renewable energy, AI, and e-commerce and expanded codes for environmental sustainability and circular economy activities.

2. Revised Definitions: updated definitions to clarify ambiguous categories in NACE Rev 2.

3. Streamlined Codes: consolidation of redundant categories for simplicity.

4. Integration with EU Taxonomy: NACE codes 2025 will align closely with EU sustainability goals, supporting green finance and ESG reporting.

 

The Role of CAEN Rev 3 in Romania

 

In Romania, CAEN codes are the national implementation of NACE codes. The upcoming CAEN Rev 3 update ensures compliance with NACE Rev 2.1 while addressing Romania-specific nuances. Benefits for Romanian Companies:

 

• Regulatory compliance: Simplified processes for permits, licensing, and tax declarations.

• Improved business categorization: Better alignment with international standards for trade and investment.

• Enhanced sustainability reporting: Facilitating access to green finance opportunities.

 

 

Updating the List of NACE Codes for Romanian companies to CAEN Rev 3 is a MUST in 2025. Mandatory Updates for Entrepreneurs and Businesses in Romania in 2025

 

In response to economic changes and to align with EU standards, The Romanian Government passed a resolution to facilitate the update of NACE codes, adopting the revised CAEN Rev. 3 classification (actually NACE Rev. 2.1). This update, which targets the classification of economic activities in Romania, aims to simplify the process of implementing new regulations and reduce administrative burdens for businesses.

 

For entrepreneurs in Romania, it is not only mandatory according to Romanian laws to update their object of activities to NACE Rev. 3, but crucial to understand how these changes affect legal and administrative documentation, particularly in the company formation process, company registration, and the updating of NACE codes.

 

The update to NACE codes in Romania may require modifications to a company’s object of activity or other entries in the Romanian trade register. Entrepreneurs should consider consulting a business lawyer in Romania or a commercial lawyer, such Romanian Advocacy Law Firm, to ensure compliance with the latest legislation. This includes understanding the new NACE classification, how to search NACE codes, and ensuring that all business activities are correctly classified according to the updated NACE Rev. 3 code.

 

How to Prepare for the NACE Codes 2025 Update

 

1. Understand the Changes. Familiarize yourself with the updated list of NACE codes. Identify where your company’s activities fall within the new classifications.

 

2. Conduct a NACE Code Lookup. Use tools like a NACE code finder or NACE code search platform to locate your company’s updated classification. These tools are invaluable for pinpointing changes in your industry.

 

3. Assess the Impact. Evaluate how the changes will affect your operations: licensing and permits, tax declarations and sustainability reporting under the EU taxonomy NACE framework

 

4. Update Your Records. Ensure that your company’s documentation, including registrations and contracts, reflects the updated company NACE code.

 

5. Seek Expert Guidance. Consult specialized lawyers in business and commercial law to navigate complex scenarios, such as transitioning sole trader NACE codes or aligning with NACE code EU taxonomy requirements.

 

Examples of NACE Code Updates in CAEN Rev. 3 in Comparison with CAEN Rev. 2

 

CAEN Rev. 3 list of activities is published in Romanian on the official website of the Romanian Trade Registry dedicated section, as it has been published in the Romania Official Gazette and it represents the transposal of the NACE Rev. 2.1 codes of activities, published by the European Commission in the official site. 

 

And the correspondence between the CAEN Rev. 3 in Romania (NACE Rev. 2.1) and CAEN Rev. 2 (NACE Rev. 2) is presented by the European Commission in the synthetic table available here.  

 

To illustrate how the NACE Rev 3 updates might look, consider the following examples:

 

Example 1: Technology Startups

• NACE Rev 2 Code: 62.01 (Computer programming activities)

• NACE Rev 3 Code: Expanded to include AI development and blockchain technology.

 

Example 2: Renewable Energy Firms

• NACE Rev 2 Code: 35.11 (Production of electricity)

• NACE Rev 3 Code: Separate classifications for solar, wind, and other renewable energy sources.

 

Example 3: E-commerce Businesses

• NACE Rev 2 Code: 47.91 (Retail sale via mail order or internet)

• NACE Rev 3 Code: Updated to differentiate between marketplace platforms and direct-to-consumer retailers.

 

 

Procedure for Companies and Legal Entities to Update Their NACE Codes to CAEN Rev. 3

 

To update their NACE code of activities to NACE Rev. 3, companies must submit an application to the Trade Registry using a standardized form. The application can be made through the following methods: online via the Trade Registry’s portal, in person at any of the Trade Registry’s territorial offices or by post or courier, but the latest way will last longer for registration.

 

Companies can utilize the NACE code search and lookup tools to identify the appropriate NACE Rev. 3 code that corresponds to their business activities. The updated NACE classification is essential for compliance with the latest NACE codes 2025 and EU taxonomy requirements.

 

Non-Compliance to Update CAEN Codes to NACE Code Rev. 3

 

Adhering to the updated NACE codes is not just a legal obligation; it is crucial for ensuring operational integrity and maintaining eligibility for various business benefits. Compliance with the new NACE classification helps businesses stay aligned with industry standards and ensures proper recognition in the European market.

 

1. Tax Implications: Failing to align with the updated NACE codes could result in exclusion from specific tax regimes or the loss of eligibility for valuable tax incentives, which may hinder a company's financial stability.

2. Licensing Troubles and Issues: Companies that do not update their NACE codes risk operating without the necessary licenses, potentially facing fines, sanctions, or even forced shutdowns of business activities.

3. Legal Liabilities: Non-compliance exposes businesses to significant legal risks, including potential criminal charges against company representatives. This highlights the importance of accurately updating NACE codes through a NACE code lookup or NACE code search to avoid costly legal consequences.

 

By ensuring proper NACE code classification, businesses safeguard their operational efficiency and legal standing, adhering to both national regulations and the broader EU taxonomy NACE system.

 

Frequently Asked Questions FAQs about NACE Codes Rev. 3 in Romania

 

1. What Is the Meaning of a NACE Code?

A NACE code is a unique identifier that categorizes businesses based on their primary economic activity.

 

2. How Can I Search for My NACE Code?

You can use online tools like a NACE code lookup or NACE code finder to identify the appropriate code for your business.

 

3. Why Is the Update to CAEN Rev. 3 Important?

The update ensures alignment with modern industries, EU taxonomy standards, and sustainability goals.

 

4. Do Sole Traders Need to Update Their NACE Codes?

Yes, sole traders must update their NACE codes to ensure compliance with the new system, as any entrepreneur or company must do it.

 

Conclusion: Why the Update of CAEN Codes to NACE Rev 3 is Essential?

 

The NACE Rev 3 and CAEN Rev 3 updates mark a pivotal moment for Romanian companies. By understanding the changes, conducting a NACE code search, and updating records, businesses can ensure a smooth transition to the 2025 classification system. Stay ahead by preparing now, and leverage the benefits of enhanced accuracy, improved compliance, and alignment with the EU’s sustainability goals.

 

For any question regarding the NACE codes of activities and update to CAEN Rev 3, feel free to reach out to us at tudor@roadvocacy.ro or give us a call at +40 723 77 37 59. Alternatively, you can also use the contact form on our website at www.roadvocacy.ro.