Company Formation Moldova
Updated on Thursday 07th January 2021
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BridgeWest provides company formation in Moldova. Our assistance for opening a company in Moldova includes numerous types of services, which can be seen in the list below. You can also refer to our specialists for other corporate services, such as offshore company formation and assistance on the steps necessary for opening an offshore bank account. You can contact us for the following:
- drafting the articles of association (necessary for company incorporation in Moldova) - the articles of association belonging to the Moldovan company can be signed through power of attorney (the shareholder will be able to empower our representative in this sense);
- drafting all other documents required for the incorporation of the Moldovan company - the documents required to open a company in Moldova include specimen signatures, special forms provided by the Company Registration Office in Moldova, passport copies etc;
- arranging public notary procedures and/or translations of the documents signed abroad - certain documents will have to be notarized before being filed with the local Trade Register;
- offering a registered office in Moldova for your company (if required) - the registered office may be any address where the Moldovan company declares to have its headquarters and you should also know that the registered office will be public to third parties;
- setting up a bank account for your Moldovan company - this refers both to an initial share capital account as well as a current bank account after the company is formed;
- recommending an accountant in Moldova - accountancy services are recommended for any new business registration in Moldova, irrespective of it being a holding or a trading company.
What company types are available for registration in Moldova?
Our team of company registration agents in Moldova can provide assistance for the formation of the company types that are prescribed by the national commercial legislation. We can assist local and foreign investors in registering small and medium-sized companies and we can also handle all the registration steps required for the incorporation of large corporations.
One of the legal entities available for registration is the Moldovan limited liability company (Societate cu raspundere limitata - SRL). The Moldavan limited liability company does not differ too much from ordinary limited liability companies. It is one of the most common forms of business organization, along with joint stock companies.
This company can be found in basically any jurisdiction across the world which enacted a commercial legislation, and it is a common vehicle that can be found in countries that offer the possibility of offshore incorporation. As a general rule, this company type provides the same characteristics regardless of the jurisdiction where it is set up, but differences can appear on the required capital, minimum number of shareholders, incorporation procedures and others.
In Moldova, it can be established by one person who provides a minimum capital of MDL 5.400 of which at least 40% must be paid prior to registration. The remaining amount must be paid in a 6 month term, after registration. The members of a Moldovan limited liability company are liable for the company's debts and obligations only to the extent of their contributions.
Another way to open a company in Moldova is through the Moldovan joint stock company (Societate pe actiuni - S.A.) The Moldovan joint stock company is designated for business at a larger scale. It can be also set up by one person who provides a minimum capital of MDL 20.000 which must be fully paid up prior to registration. The shareholders who wish to open a company in Moldova and who make contributions receive shares of prior established nominal values.
Just like in the case of a limited liability company, those who are the shareholders in a joint stock company have limited liability for the company’s debts, which are limited only the contribution with which they have participated at the company’s capital. Investors who want to open a company in Moldova operating as a joint stock company should also know that the management requirements of this company type require the assembly of a supervisory board, comprised of at least three members. It is also necessary to appoint a managing board.
Foreign investors can set up their operations here through the Moldovan branch, subsidiary or the representative office - any foreign company is able to set up branch entities in Moldova. These can be set up as separate entities from the parent company (Moldovan companies having the foreign company as shareholder) or extensions of the parent-company in Moldova.
The capital that has to be deposited for a company type must be deposited in the national currency of the country, which is the Moldovan Lei. The procedure for opening a corporate bank account has to be done in accordance with the regulations of the National Bank of Moldova, the entity which regulates the activity of commercial banks registered in this country.
When depositing the required capital for a limited liability in Moldova, it is necessary to know that its investors have the obligation to create a reserve capital representing 10% of the company’s authorized capital. This is a common requirement that can be met in other countries (the percentage may vary or may not be imposed at all, for instance, in the case of those interested in offshore incorporation, limited liability companies may be sometimes formed without a minimum share capital requirement).
What should one know on the registration process in Moldova?
Persons interested in investing in Moldova will generally be interested in the business environment, the taxation system, the incentives available for an industry and others. However, investors will also be interested in the characteristics of the incorporation process – its duration, the requirements imposed to foreign investors and so on. At the moment, investors should know the following key elements:
- the process of company formation in Moldova for a limited liability company can be completed in 2 weeks, for a joint stock company one should wait approximately 3 weeks and for a representative office, the procedure may last up to 4 weeks;
- the process of opening a corporate bank account will also vary based on the legal entity of the company, as such – 4 weeks for a limited liability company, 5 weeks for a joint stock company and 6 weeks for a representative office;
- a corporate entity in Moldova can operate with 1 director (there aren’t any residency requirements);
- for all company types regulated by the national law, one can register it with 1 shareholder;
- corporate entities are taxed with a corporate tax charged at a rate of 12% (the representative office is charged with 0%, as it does not conduct commercial activities).
What other business forms can one register in Moldova?
Above, we have presented some of the most popular ways to start a business in Moldova, but investors should know that other entities are available, in accordance with the regulations of the national law. Investors can open a company in Moldova as an individual enterprise, which is the equivalent of the sole trader, or as a general or limited partnership.
The legislation also prescribes the following: production cooperatives, entrepreneurial cooperatives, rental companies, state enterprises and municipal enterprises. You can address to our team of specialists in company formation in Moldova for advice on the particularities of these entities and the rights foreign businessmen have in investing in these types of companies.
BridgeWest is also able to offer ready-made Moldovan companies and assist with VAT registration. Please contact us for more information regarding how open a company in Moldova and prices! We also invite you to address to our team of information on the process of offshore company set up, as our specialists have the necessary expertise in the legislation pertaining to this procedure.