THE ADVANTAGES OF OPENING A COMPANY IN THE REPUBLIC OF MOLDOVA
In the 21st century the number of entrepreneurs is steadily increasing.
Many of them decide to set up companies abroad.
One of the most suitable locations unpopular for Europe, is the Republic of Moldova.
The Republic of Moldova has advantages for the establishment and management of a company: low taxes compared to the rest of the countries in Europe, state-of-the-art working flexibility of state institutions, online reporting of all accounting reports, the use of electronic signatures, developed banking systems are just a few the country's benefits for entrepreneurs.
To simplify the company's start-up and management process, Virtual Office team proposes solutions that fit each entrepreneur.
We save your time, money and grow professionalism with our partners through qualified lawyers, experienced accountants and customer management managers who will take over the company's founding, management process and simplify your stay with insurance: transportation, accommodation, translation, escorting, opening firm, legal or tax advice, accounting and other company management needs.
Final tax for cash withdrawal: 18% (12% company tax, 6% individual tax)
Opening company cost: 400 €.
Company opening term: 3 days.
Monthly costs for company maintenance: Legal Registry + Secretarial Services: 99 € / month.
Advantages of opening a company in the
Republic of Moldova:
1. FAVORABLE TAX POLICY.
Moldovan entrepreneurs can choose between two ways of taxations:
Mode no. 1: The company has VAT non-paying status and pays 4% of the total revenue turnover. This method of taxation is valid if the annual turnover in a month (and consecutive) is less than € 60,000. If the turnover is exceeded, then the company automatically transforms into a VAT payer and operates as per option 2.
Mode no. 2: The company is VAT-paying and pays 12% of the gross profit.
Profit taxes are paid once a year on March 25 next year.
The profit is calculated as follows: total
expenditure is deducted from total revenue (which is shown to be used in the
Mode no. 1 is advantageous if the company registers a large profit and costs. Is not suitable for high turnover companies.
Mode no. 2 is advantageous when the company has large revenue streams.
Non-resident individuals who open a company in the Republic of Moldova can calculate the company's profit as dividends, paying only 6% of the total amount withdrawn.
In conclusion, if a non-resident opens a company in the Republic of Moldova and wishes to cash in the profits obtained, he pays a total of only 18% (12% as a legal person and 6% as a natural person).
Any shareholder of the company is entitled to dividends.
2. COMPANY REGISTRATION AND LIGHT MANAGEMENT.
The most commonly used organizational forms of companies are Limited Liability Companies (LLCs) and Joint Stock Companies (JSCs).
Opening a business it takes up to 3 business days in normal mode and for 4 hours in emergency.
Setting up a LLC costs € 400 (3 business days) and € 650 (4 hours).
LLC can be set up from one person to an unlimited number of people.
The founder may also act as administrator, but he should not be counted as an employee of the company.
If the founders want to be anonymous, he still can set up a Joint Stock Company.
In this case, the shareholder register is confidential and is not in the records of state institutions, only to private registrars. The information is not in a public document and the list of shareholders of joint-stock companies is not displayed.
At the administrator's request for data protection and keeping anonymity about his state in the company or country, it is possible to recruit a delegated administrator. The Virtual Office team provides delegated administrator services at a price of 200 € per month.
All companies registered in the Republic of Moldova are obliged to keep accounting records, to report annually the balance sheet and the financial results.
The Virtual Office team provides accounting services, if the company does not have more than monthly operations cost, monthly accounting services costs 49 € per month.
3. THE BANKING DEVELOPMENT SYSTEM.
The national currency in the Republic of Moldova is MOLDOVAN LEI (MDL) with an approximate rate of 1 EUR = 20 MDL.
The Banking System in the Republic of Moldova consists of 11 Commercial Banks, all of them private, with national or foreign capital. It is possible to open current accounts in both national and foreign currency.
All banks provide the option of Internet Banking, a simple application in use. MASTERCARD or VISA bank cards can be opened for both personal accounts and business accounts.
The main advantage of banks in the Republic of Moldova is the facility to open bank accounts to non-residents.
Also, there is no deposit limit or cash withdrawal, and the information regarding the bank account holders is not disclosed to anyone, is strictly confidential.
Cash can be deposited in any convertible in international currency, including EURO.
4. ACCESSIBLE AND LOCAL LOCATION.
The Republic of Moldova is a predominantly small country with a population of 3 million. people, located in Eastern Europe between Romania and Ukraine.
Geographically the Republic of Moldova is located in Europe, but the country is not part of the European Union, which serves as an advantage. Because the government of the Republic of Moldova and the tax system are not obliged to report information to the countries adhering to the European Union, the information regarding the entrepreneurial activity of the foreign citizen is confidential.
There are daily direct flights from Europe to Chisinau, capital of the Republic of Moldova, costing less than 100 €, the fly takes 2-3 hours.
All citizens of EU countries can travel without a visa on the territory of the Republic of Moldova for 3 consecutive months.
Public transport is accessible, a taxi ride starts at 2 € (fo country road trips the cost starts at 20 €). The average price for a one-room hotel room in the center of the capital costs an average of 50 €.
Most of the population is multilingual,
knowing English, Italian, Russian and Romanian.
If you are interested in opening a company or bank accounts in the Republic of Moldova, do not hesitate to contact us:
+373 22 99 77 63