🇷🇴 Annual Compliance — Romania

Choosing the micro-company regime without analysing profit margins

Fix: Run the numbers on both regimes before incorporating. If your profit margin is below approximately 6%, the standard 16% corporate tax on profits may result in a lower tax bill than 1% on revenue. An accountant familiar with both regimes can model the optimal choice for your business.

Assuming VAT registration is automatic upon incorporation

Fix: Romania does not auto-register new companies for VAT. Apply separately through ANAF. Be aware that ANAF conducts risk assessments for voluntary VAT registration and may reject or delay applications. Prepare a solid business plan and proof of intended economic activity to support your application.

Neglecting to hire at least one employee for micro-company eligibility

Fix: The micro-company regime requires at least one employee (including the administrator under an employment contract). If you are a solo founder, you may need to employ yourself. Ensure the employment contract is registered with Revisal (the employee registry) before claiming the micro-company rate.

Underestimating ongoing accounting obligations

Fix: Romanian accounting standards require monthly filings (VAT returns, payroll declarations) and detailed bookkeeping. Engage a licensed Romanian accountant from the start. Costs are modest (€100–€300/month) but failing to file on time results in penalties. All records must be maintained in Romanian.