Every firm doing business in Moldova is required to register with the local government. Moldova’s company registration procedure is quite simple. This is to attract and encourage more business owners.
Business structures in Moldova
The following types of entrepreneurial activity are permitted under Moldovan law:
- Single-person business
- Limited partnership
- General partnership
- Limited-liability enterprise
- Joint-stock business
- Branch office
- Cooperative
- Representative office
The most common kind of legal registration for foreign companies doing business in Moldova is a limited liability corporation. Joint-stock businesses come in second place.
Procedure for registering a company
The following are the steps that make up the registration process:
Select the company’s name
Choosing a name for the firm is the first stage in the registration process. The selected name cannot be the same as or similar to that of an existing business. You may contact the Public Services Agency to see whether the firm name is available and to reserve it.
Prepare the documents of incorporation
Assemble the necessary paperwork for business registration, which normally consists of:
- the memorandum and articles of association in Maldovan;
- founders’, shareholders’, and directors’ identification papers (such as passports);
- a copy of the founders’, shareholders’, or directors’ proof of address;
- power of attorney, if necessary;
- papers notarized if required;
- leasing agreement for the site of the registered office.
Create a bank account and deposit the start-up money there
It is necessary to register a bank account in Moldova for your business to deposit the minimum share capital that is needed by law. Share capital is the sum that investors put into a corporation to be used for commercial purposes. It is necessary to deposit a minimum share capital of 20,000 MDL, or around $1,000 in euros, to establish public or joint stock corporations. Reserve funds must account for at least 10% of the share capital in joint stock firms. The sole proprietorship and private limited liability companies are exempt from minimum share capital requirements.
Company registration
The Moldovan State Registration Chamber is where businesses are registered. According to the legislation, registration must be completed in two phases over five days for a regular operation and four hours for a rushed procedure. Depending on the legal structure of the firm (LLC, joint-stock company, sole proprietorship, etc.), the application and a set of supporting papers must be submitted in the first stage. The State Registration Chamber grants the firm full legal authority in the second step by issuing a registration certificate and a distinctive identification number. The “one-stop-shop” idea, which released companies from the need to register with tax, statistical, social security, or health insurance agencies, was implemented by the government in 2010. The firm owners will get the certificate of registration, the company seal, the papers of incorporation, and the Public Services Agency’s rulings when registration is complete.
Registration for value-added tax
You should register for VAT with the State Tax Service if your business is anticipated to have an annual turnover greater than the VAT threshold. If the company’s yearly revenue is less than MDL 1,200,000, registration for VAT purposes is not required. However, businesses having a yearly revenue of more than MDL 1,200,000 are required to register for VAT.
Getting license
Certain business operations need the granting of a license after registration. Some specific specialized activities must get extra licenses, even though most businesses only need to go through one licensing process. An example is financial activities. A company must apply and supply extra documentation which may vary depending on the nature of company activity, along with a copy of the business registration certificate. Businesses could also need to seek authorizations and certifications in addition to licenses, depending on their particular company activity and product. These papers could include topics including compliance with sanitary, environmental, fire, security, and safety regulations.
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