Legal Framework for Foreign Investors

The activity of foreign investors and enterprises with foreign investments in the Republic of Moldova is regulated by foreign investment legislation, other applicable laws and regulations and international treaties to which the Republic of Moldova is a party.

The Law on Foreign Investment stipulates that in the Republic of Moldova foreign investors may establish enterprises in the form of joint ventures or companies with a 100% foreign capital (investment).

The Law on Business and Enterprises and the Law on Foreign Investment indicate that enterprises with foreign investment may be founded in any business form, which does not contradict the legislation of the Republic of Moldova, by means of establishing new enterprises and reorganization (re-registration) of previously established enterprises.

The Law on Business and Enterprises provides for the following business forms of activity or commercial vehicles in the Republic of Moldova:

a) individual enterprises;
b) full partnerships;
c) limited liability partnerships;
d) limited liability companies;
e) joint stock companies;
f) production cooperatives;
g) lease enterprises;
h) state and municipal enterprises.

The Law on Business and Enterprises requires a founder(s) to register an enterprise with the State Registration Chamber of the Ministry of Justice of the Republic of Moldova before starting business activity in the Republic of Moldova.

The Law on Foreign Investment provides that the Ministry of Economy and Reforms of the Republic of Moldova must authorize the establishment of an enterprise, in the capital of which the monetary evaluation of foreign investment exceeds 5 million US Dollars. Other anti-trust restrictions may also apply in certain areas of foreign investment.

A founder(s) are also required to register an enterprise with the relevant tax authorities of the Republic of Moldova and to obtain a respective fiscal number certificate.

For certain types of activity an enterprise is required for to obtain a license from an authorized government body of the Republic of Moldova prior to commencing such activities. The documents necessary for the registration of entities and licensing and relevant incorporation, licensing and other procedures are regulated by applicable legislation.