Understand the Jurisdictions Setup Requirement Before Proceed Your Company Registration in Moldova
The Republic of Moldova is a location that hasn’t been discovered as a business destination as well as an option that suits the needs of entrepreneurs. The Republic of Moldova brings a competitive regime to the table for companies and businesses. It is located in a strategic geographical location alongside a proximity to large markets in the European Union (EU) and outside of the EU. There are a number of advantages offered to those interested to register a company in Moldova. A good starting point is the low corporate income tax rate, a good double tax treaty network as well as low company set up and employment costs among others.
Company Registration in Moldova Process
Begin your company registration in Moldova by being familiar with the three (3) different types of entities one can incorporate in the Republic of Moldova.
Moldova Limited Liability Company (LLC)
- A minimum paid-up capital of US$300 is required.
- Takes approximately 2 weeks to incorporate.
- Takes 4 weeks to open a company bank account.
Moldova Joint Stock Company (JSC)
- This entity is used mostly by investors who would like to trade shares on regulated commercial markets.
- A minimum paid-up share capital of US$1,100 is required.
- Takes approximately 3 weeks to incorporate.
- Takes 5 weeks to open a company bank account.
Moldova Representative Office (RO)
- This entity can be wholly foreign-owned, but it cannot carry out any income-generating activities. It can only carry out market research or the promotion of the business of the parent company.
- There is no minimum paid-up share capital required therefore, a small amount of US$1 will suffice.
- Takes approximately 4 weeks for incorporation.
- Takes 6 weeks to open a company bank account.
These three (3) entities have a few aspects in common. The first is all three (3) entities only require one (1) shareholder and director of any nationality. The Client also does not need to travel for incorporation and it also isn’t required for there to be a resident shareholder or director. The Moldova corporate tax rate for the LLC and JSC is 12% and 0% for the RO. Both the LLC and JSC are also required to submit annual financial statements whereas the RO isn’t required to do so. This is regulated by the Ministry of Economy and Trade.
Why Invest in the Republic of Moldova?
The Republic of Moldova has plenty of advantages concerning company establishment and management. Among them are the low taxes compared to the countries in Europe, developed banking system, working flexibility of state institutions, online accounting reporting, the use of electronic signatures, etc. Part of Moldova’s economy is sustained by remittances from individuals working abroad, either in the EU or in Russia. The value of remittances was around 1.3 billion MDL in 2010. Between January and April 2019 industrial production increased by 12.3 percent.
Moldova is a part of many trading bodies like World Bank, Central European Free Trade Agreement, Central European Initiative and other bodies and associations. This has led to the creation of a stable economic environment. However, it isn’t a part of the EU which serves as an advantage as the government and the tax system are not obliged to report information to the EU. The information regarding the entrepreneurial activity of foreign citizens is confidential.
The main reasons why investors choose to set up business in Moldova are the open economy, the development of primary industry sectors and the low corporate income tax rate. The process to register a company in the Republic of Moldova is quite simple when broken down but it can also be quite tedious and complicated. Should you require any assistance or services, we provide these services to ensure a smooth integration into the economy in the Republic of Moldova.