Although an expansion is an exciting time for your company, there are a lot of logistics to consider. You’ll have to set up a Moldova subsidiary, meet Moldova’s subsidiary laws, and hire employees. That’s all on top of running your parent company and handling all other aspects of an expansion.
G-P understands these challenges and can simplify every stage of your expansion journey. When you work with us, you won’t have to create your own entity in the country. As a global Employer of Record (EOR), we’ll hire employees on your behalf, streamline payroll, and manage compliance, so you can focus on your business.
How to set up a Moldova subsidiary
Before you dive into setting up your Moldova subsidiary, you’ll have to determine a location and the type of entity that will work best for your business goals. We recommend researching all potential company locations before purchasing a building or signing a lease. Cities or regions in Moldova can operate like states with their own subsidiary laws, availability, costs, and more. Working with an expert to pick the best location for an expansion can help you start working faster.
You also need to choose a structure for your Moldova subsidiary. Your subsidiary structure options include a limited liability company (LLC), a joint stock company, and a representative office. An LLC will give you the most freedom, while a representative office is more restrictive on what business actions you can take.
The steps to establish an LLC include:
- Delivering all documents to the State Registration Chamber.
- Obtaining a unique state identification number.
- Creating a local bank account and depositing capital.
- Obtaining a registration certificate and constitutive act.
- Obtaining the official stamp from the Ministry of Information Technologies and Communication.
- Acquiring statistical codes.
- Submitting a bank certificate to the Registrar.
- Ordering a company stamp.
- Registering with the Tax Inspectorate.
- Registering with the Social Security Fund and the National Medical Insurance Company.
Moldova subsidiary laws
Every entity, including an LLC, has its own Moldova subsidiary laws that you must follow. LLCs need share capital of at least MDL 5,400, and at least 40% of that money must be deposited at registration. The other 60% needs to be deposited within 6 months of incorporation. LLCs also operate using no more than 50 shareholders and at least 1 appointed manager and 1 administrator appointed by the General Meeting of the Shareholders.
Since your LLC is a locally incorporated entity, you’re also responsible for taxes. Every LLC needs to submit annual audited financial statements to the Moldovan commercial registry.
Benefits of setting up a Moldova subsidiary
Completing the Moldova subsidiary setup process will allow you to work freely in the country. Many companies choose to incorporate their subsidiary as an LLC because it gives them the most freedom. Your parent company will also not have to worry about gaining liability from the subsidiary, and the subsidiary will be somewhat independent of the parent company.
Other important considerations
Preparation is key to learning how to set up a Moldova subsidiary. You’ll need to set aside the time and money necessary to complete the incorporation process. We also recommend working with an expert in Moldova subsidiary laws, such as a lawyer, accountant, or consultant who can help you stay compliant.
Enter new markets with G-P — no new entities required.
Beat the competition and enter new markets in minutes, not months, with G-P. We’ve paired our industry-leading team of in-region HR and legal experts with our #1 global employment platform to help you hire compliantly in 180+ countries, eliminating the need to set up local entities or subsidiaries.
Get in touch today to learn more about how we can streamline the global growth process.