Establishment of a company in the Republic of Moldova
The Republic of Moldova is a location that is not yet recognized as a business destination but it has a high potential and a number of advantages in terms of setting up and running companies, such as: low taxes compared to other European countries, developed banking system, flexibility of work of state institutions, customs union with the European Union countries and free flow of goods.
Setting up a company in the Republic of Moldova is a fairly simple procedure, lasting from 4 hours to a maximum of 2 days. Bureaucratic procedures are minimal and all services are centralized. Another advantage would be the fact that for setting up a company in the Republic of Moldova the procedures are not different for foreign citizens from Moldovan citizens, it is enough a valid identity card, respectively a passport for foreign citizens; and that’s all. Also, unlike other Eastern European countries, foreigners can be directors of their own company.
The first step forsetting up a company in the Republic of Moldova: Establishment of the field of activity and legal address
Before the actual registration of the company, any eventual businessman in the Republic of Moldova must know what he wants to do and specially to consult the CAEM codes in force. Subsequently, depending on the field of activity, choose the right type of company.
Below, we present the most common types of companies:
Limited Liability Company (S.R.L.)is a legal form of company, a certain form of legal person, which has a limited liability before the law and towards its owners. It is a hybrid form of business with characteristics of both a partnership and a corporation, being more flexible than other forms of companies and more suitable for a sole proprietor or a small number of members.
Joint Stock Company (S.A.)is the company whose share capital is entirely divided into shares and whose obligations are guaranteed by the company's assets. This type of company can operate anywhere in the world and is suitable for any type of business, but requires a higher initial capital.
Individual Enterprise (Î.I.)involves an individual or a married couple who start a business. This is the most common structure of companies, due to the fact that it is easy to set up and operate, with fewer controls and lower taxes. However, the business owner is responsible for all debts incurred by the company.
Last but not least, there is a need to establish a legal address for the future business. For foreign citizens there are specialized companies that provide a legal address in exchange for a monthly fee. As Koluman Law, we can provide you a physical address.
The second stepfor setting up a company in the Republic of Moldova: The State Registration Chamber
Having the identity card and the lease of the legal address, the future businessman must go to the State Registration Chamber where he will have to submit a standard application for company registration.
Registration fees vary depending on the period in which the company is to become operational. In the Republic of Moldova, a company can be set up in 5 days or 24 hours.
The third stepfor setting up a company in the Republic of Moldova: Bank Account and Tax Registration
In order to start its activity, the new company will need to open a bank account, which can be done at any commercial bank. Also, the account and the new company will have to be registered with the tax office, about which the company's legal address is located. The registration with the tax office and the activation of the bank account theoretically takes three days, but in practice the procedure can be completed in less than 48 hours from the submission of the documents.
After making the registrations in the State Register, you will receive these documents when the firm is established:
· The decision of the State Registration Chamber
· Deeds of incorporation
· Extract from the State Register
· The unique state identification number (IDNO) assigned to the legal entity is also considered a tax code
The legal person is considered registered on the date of adoption of the registration decision.
After creating the stamp, your company is ready to do business.
For all your questions and help request please feel free to contact Koluman Law (Chisinau). We will be glad to help you with all the process.