Registering a Company in Moldova

Moldova is a landlocked country in northern Southeast Europe. Creating a company in Moldova may provide numerous advantages. To begin with, the country has a relatively streamlined registration process, making it relatively simple and quick to register a company. Second, Moldova’s tax system, which is simpler and lower in rate than in other European countries, contributes to lower business costs.

In addition, the low cost of living and labour costs make it cheaper to do business in Moldova. Its geographical location at the crossroads of Europe and Asia makes it a strategic location for accessing the European market or trading with Asia. Moldova is a member of several free trade agreements and enjoys trade facilitation and preferences.

The Moldovan government actively promotes business development and offers a wide range of support measures and services that are conducive to business growth and development. However, potential challenges and risks such as language barriers, bureaucracy, policing issues, etc. still need to be considered when registering a company.

As a result, it is advisable to conduct adequate market research and due diligence before making a decision, as well as consult professional advisors or lawyers, to ensure compliance with local laws and regulations and to make informed business decisions. To address this, you can contact 3E Accounting directly for assistance in understanding the registration process.

Moldova Company Registration Process

A Moldovan company is typically formed as a Limited Liability Company (LLC) or a Joint Stock Company (JSC). Furthermore, foreigners may register a representative office in Moldova; however, this entity may not engage in any economic activity and may only be used for market research or promotion of the parent company.

In order to register a Moldovan company, you need to apply to the Moldovan Chamber of Commerce for the reservation of the company name. Before reserving a name, you must prepare at least five company names. It takes approximately 2 days from the submission of the application to its approval.

Any type of Moldovan company registration requires at least one shareholder and director of any nationality. After the company is formed, there is no need for resident shareholders or directors. This also significantly reduces the cost of establishing a business in Moldova. Annual financial statements are required for limited liability companies and joint stock companies, but not for representative offices.

The process of registering a Moldovan company is divided into two stages and takes about 5 days. The first stage focuses on the submission of documents awaiting review, while the second stage is when the certificate of company registration is issued.

Corporate Income Tax in Moldova

Moldova’s corporate income tax is 12%, which is lower than in neighbouring countries. Moldova benefits from various economic and trade cooperation mechanisms, including the WTO, MOFTA, and the CIS Free Trade Area. Furthermore, Moldova has signed DTAs with 50 countries and territories, including China, and Bilateral Investment Agreements (BIAs) with 45 countries and territories, which provide multiple tax breaks.

Foreign companies can also get VAT refunds on capital expenditure for long-term investments, as well as VAT and customs duty exemptions on company assets. As a result, Moldova has grown in popularity among foreign investors.

However, successfully registering a company is just the beginning. Make sure you have an in-depth understanding of local regulations and market trends, as well as a comprehensive business plan. Contact 3E Accounting and let our professional team help you better integrate into the local business environment. We wish you success in Moldova!