Moldova: doing business with limited-liability companies made even easier
On 3 April 2014, the Parliament of the Republic of Moldova passed Act No. 53/2014 on amending and supplementing certain legal acts. Act No. 53 entered into force on 25 April 2014 and inter alia changed the Civil Code and Act No. 135/2007 on limited-liability companies. The effected changes have a direct and positive impact on the legal aspects that should be observed while incorporating and operating a business in Moldova.
Act No. 53 puts an end to the famous rule, which existed for more than 20 years, pursuant to which the minimum share capital of an LLC should constitute not less than MDL5,400 (£225) (or the equivalent in a foreign freely convertible currency). As of 25 April 2014, the founding shareholder or shareholders are free to decide the exact share capital of the incorporated LLC on their own.
Still, while benefiting from this freedom, shareholder(s) should bear in mind the following: (1) the exact size of the share capital should be specified in the statutes (constitutive act) of the LLC; (2) the set size of the share capital represents the value of the minimum assets an LLC should continuously hold — a failure to do so may result in the obligation to either reduce/increase the share capital or liquidate the LLC; (3) the share capital and the share(s) should be evenly divisible by MDL 1 — hence, practically the exact share capital may not constitute less than MDL 1; and (4) for particular types of activity (e.g. operating gambling businesses etc.), the law may require higher share capital (to be checked on a case-by-case basis)…
Click on the link below to read the rest of the Schoenherr briefing.
Sign in or Register to continue reading this article
It's quick, easy and free!
It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.Register now
Why register to The Lawyer
In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.
Identify the major players and business opportunities within a particular region through our series of free, special reports.
Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.
More relevant to you
To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.
News from Schoenherr
Briefings from Schoenherr
The recently adopted ZZSDT sets out new conditions for the employment, self-employment and work of foreigners and indirectly transposes the relevant EU Directive into national legislation.
On 21 August 2015 an act amending the Polish Labour Code was published in the Journal of Laws.
Analysis from The Lawyer
Regulators are ramping up the pressure in the aftermath of recession, leaving firms to compete for compliance and restructuring work