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Understand the Jurisdictions Setup Requirement Before Proceed Your Moldova Company Registration
Moldova has one of the lowest exposures to the global financial crisis, in fact, they are only the 5th. The location of Moldova is strategically between Ukraine and Romania and it speaks Romanian and Russian language, which is why it is easier for them to make connections with neighbouring countries. Even if there is a powerful communist party in Moldova, they are still aiming to join the European Union (EU). There are reforms being initiated and carried out in order to converge with the standards of the EU. The reasons why investors choose to set up a business in Moldova are encouraging and company registration is uncomplicated.
How to Start a Moldova Company Registration
When you register your company in Moldova, you should be able to meet the minimum criteria. Be ready with the company name, unique company identifier, address, and monthly update.
Here are the forms that a company is allowed to take:
- Sole proprietorship: The simplest business form and the founder is responsible for the company and debts it incurs.
- General partnership: The company is formed by at least 2 and a maximum of 20 partners, all of them bearing unlimited liability.
- Limited liability partnership: Only some of the partners have unlimited liability for the business.
- Joint-stock company: This one is more suitable for large businesses and the founders are not held responsible for the company’s debts.
- Limited liability company: A business form that is widely used, with relatively low requirements, the founders have limited liability and suitable for many kinds of activities.
- Production cooperative and business cooperative: Normally used for joint production or even joint business activities.
Benefits of Having a Business in Moldova
The Tax Policy is Favourable
The entrepreneurs in Moldova have the option to choose between two modes of taxation.
The company VAT has a non-paying status and pays 4% of its revenue turnover. This taxation method is valid if the monthly turnover is not more than €60,000. In case it has exceeded, the company becomes a VAT payer.
The company pays VAT, which is 12% of their gross profit.
The Profit Taxes Are Only Paid Once a Year
The profit calculation is done like this: The total expenditure will be taken from the total revenue.
The first mode is an advantage in case the company is registering a large profit and costs. This is one is not suitable for companies with a high turnover.
The second mode is ideal if the company has large revenue streams.
Moldova is Party to the International Trade Agreement and Systems
Moldova is one of the members of the World Trade Organization (WTO). Since they are a member of the CIS, part of the benefits of Moldova comes from free trade agreements with CIS countries. Moldova can take advantages of the EU GSP Plus System.
Great Talent in IT and Design
The IT market in Moldova is still in the developing stage but it has been proven to be effective and competitive as a player in the international market. It is one of the most dynamically developed sectors in the national economy. When it comes to offshore/nearshore activities, Moldova is a chosen outsourcing location across South-Eastern Europe. The majority of the projects are commissioned from the USA, UK, Germany, and France.
3E Accounting can give assistance in the company registration in Moldova, and if customers need help, contacting us is easy.