An investor may open in Moldova different types of business and this fact doesn’t usually affect the type of activity that is conducted by the company. There are some cases when licenses are required to perform certain type of activities (like banking or insurance).
The most common form of business that can be registered in Moldova are the partnerships and the companies. The partnership may be general or limited. The companies are with limited liabilities or joint stock companies.
In Moldova the business may also be organized as sole proprietorship, Co-operatives or State and municipal enterprises.
The Limited Liability Company (Societate cu Raspundere Limitata - SRL) is based on a share capital of 5,400 MDL (approx. 350 EUR) that can be deposited in two tranches, 40 % at registration and 60% within 6 months from incorporation. It is ruled by the General Meeting of the Shareholders, an appointed manager and one administrator.
It’s the most common type of business met in Moldova because of the advantageous incorporation procedure. This type of business cannot be formed by more than 50 shareholders.
The Moldavian Joint Stock may be open or closed, the main difference between this two is the way the shares can be traded. The shares from the open joint stock company can be public trade with no restriction for the third part who’s trying to purchase it. The minimal share capital for this type of company must be equal with at least 20,000 MLD (1.300 EUR). A closed joint stock company cannot freely trade its shares to a third part and must have a minimal share capital of at least 10,000 MLD (650 EUR).
The liability of these types of company is carried by the shareholders but only in the limit of their contribution.
The General Partnership is forms of business obtain by joining no more than 20 entrepreneurs under the same name in order to achieve the same economical goals. An agreement may be signed between the parties. It doesn’t require a minimum share capital but has limited number of shareholders with unlimited liability under the losses and incomes.
The Limited Partnership is also based on an agreement signed between no more than 20 investors split into general partners (with unlimited liability and decisional power) and silent partners, which liability is limited and depending on the size of the contribution.
Other forms a business can take in Moldova are the sole proprietorships, state and municipal enterprises and the cooperatives.
A sole proprietorship owner is fully liable for the debts and incomes. His personal assets are subject to a claim from creditors in case the debts cannot be covered.
The state and municipal enterprises are legal entities based on the state or local authorities’ assets. These assets cannot be used as guarantees or in leasing procedures. Also the assets cannot be invested in another country.
Cooperatives must be formed by at least five investors and can take two forms: it can be production cooperatives or business cooperatives.
Branches of foreign companies can be established but the parent company is fully responsible for its activities.