Congratulations on your expansion to Moldova. Although it's an exciting time for your company, there's a lot to worry about too. Your company has to figure out how to set up a...
Read MoreCongratulations on your expansion to Moldova. Although it's an exciting time for your company, there's a lot to worry about too. Your company has to figure out how to set up a Moldova subsidiary, meet Moldova's subsidiary laws, and discuss whether or not to outsource. That's all on top of running your parent company and handling all other aspects of an expansion.
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Congratulations on your expansion to Moldova. Although it’s an exciting time for your company, there’s a lot to worry about too. Your company has to figure out how to set up a Moldova subsidiary, meet Moldova’s subsidiary laws, and discuss whether or not to outsource. That’s all on top of running your parent company and handling all other aspects of an expansion.
Globalization Partners understands these challenges and will help you face them head-on through Moldova subsidiary outsourcing. When you work with us, you won’t have to create your own entity in the country. We’ll use our existing subsidiary to hire employees for your company, add them to our already-compliant payroll, and give you peace of mind about compliance.
Before you dive into setting up your Moldova subsidiary, you need to look at where your company wants to operate and what type of entity would 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 entity will outline what kind of actions you can and cannot take in Moldova. For example, a limited liability company (LLC) will give you the most freedom, while a representative office is more restrictive on what business actions you can take. Your subsidiary structure options include an LLC, a joint stock company, and a representative office.
The steps to establish an LLC include:
Every entity, including an LLC, has its own Moldova subsidiary laws that you must follow. LLCs need share capital of at least 5,400 MDL, and at least 40% of that money must get deposited at registration. The other 60% needs deposited within six months of incorporation. LLCs also operate using no more than 50 shareholders and at least one appointed manager and one 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.
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 benefits and is relatively easy to set up. 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.
Choosing Moldova subsidiary outsourcing with a global PEO such as Globalization Partners will help you realize these benefits faster. It can take up to a year to set up your own subsidiary, in which time you lose valuable business relationships and talented job candidates. Instead, Globalization Partners will take that time down to a day as you use our existing subsidiary to start working fast. We’ll take on all the compliance too as the Employer of Record, so you’ll have to worry only about running your company.
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.
Globalization Partners has a whole team of experts standing by to help you expand to Moldova. Contact us today to learn more about Moldova subsidiary outsourcing.
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