Why Moldova Is the Right Choice for Your Business

A small Eastern European country, Moldova is sandwiched between Romania and Ukraine. It was a Soviet republic until 1991 when it gained its independence. Since then, Moldova has pursued political and economic reforms, aiming to integrate with the European Union and the global market.

For foreign investors eyeing opportunities in Moldova, the country is an appealing destination. In its capacity as a gateway between Europe and Asia, Moldova offers access to a vast market of over 800 million consumers. Moldova’s membership in the Commonwealth of Independent States (CIS) free trade area further enhances its appeal, facilitating trade with neighboring countries. The Association Agreement and Deep and Comprehensive Free Trade Area (DCFTA) that Moldova has with the European Union secure preferential access to one of the world’s largest economic blocs.

From a taxation perspective, Moldova is a great place for both companies and individuals. With a flat corporate income tax rate of 12%, among the lowest in Europe, and favorable personal income tax rates ranging from 7% to 18%, Moldova offers an attractive fiscal environment. Moreover, the absence of capital gains, wealth, inheritance, and dividend taxes for residents, coupled with various incentives e.g., exemptions, credits, and holidays, sweetens the deal for potential investors, particularly those eyeing opportunities in the country’s free economic zones, industrial parks, and its IT sector.

In terms of labor, you will find a skilled and educated workforce in Moldova, with a literacy rate of 99% and proficiency in multiple languages including Romanian, English, and French. If you consider launching a business there, you’ll be glad to learn that the country offers labor at a significantly lower cost compared to its European counterparts, with an average monthly salary of approximately EUR 400. Flexible labor regulations create a business-friendly environment, making it possible for employers to adapt swiftly to market demands.

Moldova’s efforts in enhancing its business climate have not gone unnoticed. According to the World Bank’s Doing Business 2024 report, Moldova ranks 47th out of 190 countries in ease of doing business, which is a significant improvement from its 112th position in 2012. Efforts to simplify procedures, reduce bureaucracy, and combat corruption have been pivotal in creating an investment-promoting environment. Modern electronic governance systems facilitate seamless business registration, property acquisition, contract enforcement, and insolvency resolution, which boosts investor confidence.

In addition to its supportive laws, Moldova offers efficient investment support mechanisms. The Moldovan Investment Agency is a one-stop shop for investors, providing them with comprehensive services that range from market research and site selection to legal guidance and post-investment support. A network of investment promotion offices abroad actively boosts Moldova’s investment potential. The establishment of an Investment Support Group underscores the government’s commitment to addressing investor concerns and driving continuous reforms to enhance the investment climate in the country.

Registering a company in Moldova: steps to follow

You can seamlessly register a company in Moldova either online or in person, following these simple and fast steps:

1. Choose a legal form for your company

Moldova offers various legal forms for setting up a company. You are welcome to choose from limited liability companies (LLCs), joint-stock companies (JSCs), general partnerships, limited partnerships, sole proprietorships, branches, or representative offices. The most common and convenient legal form for foreign investors is the LLC, which requires a minimum share capital of 300 EUR, one or several shareholders, and one or more directors, who can be of any nationality and residency.

2. Pick a company name

The matter is not as simple as it may appear at first sight. Your company name must be unique and not identical or similar to any existing company name in Moldova. This is important to avoid confusion and potential legal disputes with other businesses. Mind that it also needs to comply with the Moldovan language rules and not contain any offensive or prohibited words. For example, your company name cannot include words that imply state or public authority, such as Moldova, government, or ministry. Before deciding on a particular name for your business, be sure to check it and reserve the name in question online on the State Registration Chamber website. This guarantees that your chosen name is available and valid and that you may use it for company registration.

3. Prepare your incorporation documents

In Moldova, the incorporation documents that you must prepare include the articles of association, the shareholders’ resolution, identification documents of your shareholders and directors, and the proof of registration fee payment. As far as the language requirements go, the said documents must be in Romanian or translated into Romanian by a certified translator. The other condition that you shall fulfill is that the documents must also be notarized by a Moldovan notary or apostilled by a foreign one.

4. Register the company

Company registration can be completed online on the State Registration Chamber website or in person at the State Registration Chamber office. The online registration takes about one hour, while to incorporate your Moldovan company in person you’ll require about three working days. The registration fee is EUR 49 for online registration and EUR 73 if you decide to do everything with a personal visit. With all incorporation procedures completed, the company receives a unique identification number, tax identification number, statistical code, and registration certificate.

5. Open a corporate bank account

To deposit the share capital and conduct its financial operations, your company must have a bank account in Moldova. You are free to choose from a variety of local and international banks operating in Moldova, with Moldova-Agroindbank, Victoriabank, Mobiasbanca, ProCredit Bank, and EuroCreditBank among them. These banks offer efficient services and products for businesses, such as online banking, loans, deposits, cards, and currency exchange. To set up a corporate bank account with them, be prepared to submit your incorporation papers, identification documents of company shareholders and directors, as well as proof of your source of funds. NB: Assisted by our experts, you will seamlessly set up both your business and a bank account in Moldova in a matter of days or even hours.

Should you require assistance with any of the above, feel free to contact International Wealth. Non-EU citizens are also welcome to get Moldovan citizenship using our services. Need more info? Check the International Wealth website or message us directly!