How to Setup a Company in Moldova?

Embarking on the journey of company setup in Moldova is a significant step towards establishing your business presence. At Incorpore, we specialize in providing comprehensive legal services in Moldova to ensure a seamless and efficient process.

Table of Contents

1. Process Overview for Setting Up a Company in Moldova
2. Decide on a Business Structure for Your Company Setup in Moldova
3. Choose a Unique Company Name for Business in Moldova
4. Submit KYC Documentation for Setting Up a Company in Moldova
5. Notarize the Power of Attorney for Successful Company Formation
6. Name Approval and Company Formation in Moldova
7. Licenses and Permits Consultation after Setup of a Company in Moldova
8. Accounting and Fiscal Laws Guidance Post Company Setup in Moldova
9. Compliance and Bank Account Opening in Moldova
10. Simplified Process for Setting Up a Company in Moldova
11. Conclusion
12. Reach Out to Incorpore

So, what is the process to setup a company in Moldova?

Here’s your detailed checklist for company formation in Moldova:

1. Decide on a Business Structure for your company setup in Moldova

Selecting the right legal structure is the foundation of your business in Moldova. The options include:

– Limited Liability Company (LLC): Ideal for small to medium-sized businesses, limited liability.

– Joint Stock Company: Suitable for larger businesses, offers the ability to issue shares.

– Individual Entrepreneur: Perfect for solo business endeavors, simple structure.

– General Partnership: Collaboration of two or more individuals sharing profits and liabilities.

– Limited Partnership: Combines general partners with limited liability partners.

You can read more about different company types in Moldova here.

2. Choose a Unique Company Name for Business in Moldova

Selecting a unique name is crucial for your identity. At Incorpore, we guide you through the requirements for company names in Moldova and assist in pre-approving your chosen name with the authorities. You can check a guide on how to choose a company name in Moldova here.

3. Submit KYC Documentation for setup a Company in Moldova

To proceed with your company formation in Moldova, we will request a comprehensive Know Your Customer (KYC) documentation for every Ultimate Beneficial Owner (UBO), shareholder, and administrator. This includes submitting a copy of your passport, a recent bank statement, and a utility bill. Additionally, we will send you a form to gather essential personal information such as your name, surname, date and year of birth, address of residence, source of wealth, and other relevant details. This thorough process ensures compliance and smooth facilitation of company formation in Moldova. After the documentation is received we will fill in the needed forms which are described in our blog about full documentation process for company formation in Moldova.

4. Notarize the Power of Attorney for Successful Company Formation

For the successful completion of your company formation in Moldova, it is necessary to sign and notarize a power of attorney in the name of our lawyer. We will provide you with the full text of this power of attorney, available in both Romanian and English, to ensure clarity and comprehension. To facilitate this process, we will inquire about your current place of residence and accordingly arrange an appointment for you at the closest Moldovan consulate. Our team will thoroughly discuss with you the steps involved in the power of attorney process and coordinate with the consulate to schedule a meeting at your convenience. Additionally, we will request the consulate to have a translator present to assist you during the appointment if needed.

In cases where you reside in a country without a Moldovan embassy or consulate, we encourage you to visit the nearest notary office. You have the freedom to choose a notary office that suits you, or if needed, we can assist in identifying a suitable location. This step is a crucial aspect of ensuring that all legal requirements are met for the smooth setup of a company in Moldova.

5. Name Approval and Company Formation in Moldova

Upon receiving your preferred company name, we will diligently check its compliance with all requirements outlined at in the blogpost on company name choice. Once we ensure that the name adheres to these standards, we will proceed to obtain approval from Moldovan authorities. After the name is approved, we expedite the company formation process in Moldova, typically completing it within 24 hours. This efficient approach ensures a swift and seamless establishment of your company, provided the name meets all necessary guidelines.

6. Licenses and Permits Consultation after Setup of a Company in Moldova

Once your company is set up in Moldova, we offer consultation on all necessary licenses and permits your business may need for legal compliance.

We are a pioneer law firm in licensing, offering expert consultation on the necessary permits for legal compliance when setting up your business in Moldova.

Key licenses we assist with include:

• Precious Metals & Stones, Pawn Shops: For handling precious metals and pawn shop operations.
• Alcohol & Tobacco: For import, manufacturing, and wholesale trade.
• Waste Management: For metal waste recycling.
• Firearms & Explosives: For firearms, ammunition, and explosives.
• Duty-Free & Customs: For operating duty-free shops and customs broker activities.
• Information Security: For protection and cryptographic services.
• Casinos & Gambling: Special focus on licensing for casino operations.
• Financial Services: Special focus on banking, foreign exchange, and capital market activities.

For more details on licensing, visit our [website].

7. Accounting and Fiscal Laws Guidance post company setup in Moldova

Engage with our accountant to understand the accounting requirements, fiscal laws, and obligations for setup up and operating a company in Moldova. Here’s an overview:

Accounting Standards:  

– Moldova adheres to International Financial Reporting Standards (IFRS) for most enterprises, especially for public interest entities like banks, insurance companies, and listed companies.

– Small and medium-sized enterprises (SMEs) can use simplified standards.

Financial Reporting:  

– Companies must prepare annual financial statements, including a balance sheet, income statement, cash flow statement, and explanatory notes, which must be audited annually.

Taxation System:  

– Moldova has a progressive tax system with key taxes such as corporate income tax, personal income tax, VAT, excise taxes, and property taxes.

Corporate Income Tax:  

– General Businesses: 12% rate on net profits.

– IT Businesses: 7% preferential rate.

– Free Economic Zones (FEZ): 6% rate, potentially reduced to 0% under certain conditions.

– Non-VAT Registered Companies: 4% tax on taxable turnover. 

For more detailed information on Moldovan taxes, visit this link

Value-Added Tax (VAT):  

– Standard VAT Rate: 20% on most goods and services.

– Reduced VAT Rates:  

– 8% on bread, dairy products, medicines, natural gas, and biofuels.

– 6% on accommodation services and certain food products.

– VAT Exemption for Export Services: Services for export are VAT-exempt with a deduction right.

Audit Requirements:  

– Public interest entities and large companies must have their financial statements audited by a licensed auditor.

For the most accurate and comprehensive understanding, visit this link or contact us for up-to-date information.

 

8. Compliance and Bank Account Opening in Moldova

Ensure compliance with Moldovan laws and start performing business activities both within Moldova and internationally. We will also consult you in regards to bank account opening in Moldova.

For more detailed information on bank account opening in Moldova, you can consult the following link. However, the general process typically involves the steps below:

Steps to Follow for Bank account opening in Moldova:

1. Gather Company Formation Documents: Collect all essential documents required for the bank account opening in Moldova.
2. Complete KYC Requirements: Prepare a comprehensive Know Your Customer (KYC) file in line with European standards, integral to the company formation process in Moldova.
3. Appoint Legal Representation: Our lawyer is granted a power of attorney for client representation, especially for banking-related procedures in the context of company formation in Moldova.
4. Submission to the Bank: Necessary documentation, such as the company incorporation certificate and the complete KYC file, are submitted to the bank.
5. Initial Bank Meeting: If needed, arrange a brief introductory meeting with the bank, typically via Teams, to discuss the banking aspects of setting up your company in Moldova.

Highlighted Banks in Moldova for Company Formation:

– Banca Comerciala „MOLDOVA – AGROINDBANK” S.A. Partnered with HEIM Partners Limited, which includes the European Bank for Reconstruction and Development, Horizon Capital, and AB Invalda INVL.

– Banca Comerciala „Moldindconbank” S.A.

– Banca Comerciala „VICTORIABANK” S.A. – Part of Grupul Banca Transilvania, a leading financial group in Romania.

– OTP Bank S.A. – A part of the OTP Group, a significant player in the Central and Eastern European banking sector.

These banks are key players in the Moldovan banking industry and can be considered during the company formation process in Moldova for their services and partnerships with prominent financial groups in the region.

Simplified Process for Setup a Company in Moldova

For a more streamlined approach:

– Initial Documentation: Send us all necessary documentation, including the KYC file and notarized power of attorney, right at the start.

– Comprehensive Services: We handle every aspect of company formation in Moldova, including name selection, bank account opening in Moldova, and accounting services.

By entrusting us with the full process, from the initial paperwork to regular business operations, you can focus on the strategic aspects of your business. Our expertise in legal services in Moldova ensures that your journey in forming a company in Moldova is smooth and compliant with all legal requirements.

Conclusion

Incorpore is dedicated to providing top-notch legal services in Moldova, guiding you through every step of company formation and beyond. From bank account opening in Moldova to navigating the complexities of business regulations, our team is here to ensure your venture into the Moldovan market is successful and compliant. Reach out to us today to begin your journey in forming a company in Moldova.

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Reach out to Incorpore

Ready to streamline your business journey? Let’s discuss how Incorpore can assist you.