Investments in the Republic of Moldova are governed by Constitution, the law on investment in business activities, other normative acts, as well as by international treaties to which Moldova is party.
Types of Foreign Investment
Investment can be made in the following forms:
a) any movable property or real estate and related ownership rights;
b) any right granted on the basis of the law or contract, any license or authorization granted according to the legislation in force, including concessions of research, cultivation, extraction or exploration of natural resources;
c) Rights arising from stocks, shares or other forms of participation in commercial companies;
d) cash investments;
e) rights to monetary claims or other forms of obligations towards the investor that have an economic or financial value;
f) intellectual property rights: the rights of industrial property (patents, utility models, trademarks and service marks, trade names, appellations of origin, industrial models and drawings, plant patents, integrated circuits topographies), copyrights and other related rights, trade secrets (know-how), goodwill;
g) other contractual rights, including those resulting from public-private partnership.
The revenue obtained from investments, deposed in order to develop entrepreneurial activity on the territory of the Republic of Moldova, is considered to be an investment.
Organizational-legal forms of enterprises with foreign investment
In the Republic of Moldova can be established enterprises with foreign investment in the form of joint ventures and enterprises with foreign capital.
A joint venture is a company, established in accordance with legislation of the Republic, whose authorized capital is composed partially of foreign investments.
A foreign capital enterprise is a company established in accordance with the laws of Republic of Moldova, whose capital is composed exclusively of foreign investments. More information about Forms of Doing Business in Moldova you can find HERE.
Registration, conduct of business and dissolution of the company with foreign investments
The procedure for registration, conduct of business and dissolution of the enterprise with foreign investments is similar to the procedure of registration, conduct of business and dissolution of the local company and is performed in accordance with the law of the Republic of Moldova.
For registration of company with foreign investment are required documents provided by law for state registration of enterprises and organizations.
The company, founded without the participation of foreign investments, and subsequently purchased by a foreign investor, acquires the status of an enterprise with foreign capital.
In the case if a foreign investor buys shares (stocks) of company, originally created without the participation of foreign investment, the enterprise acquires the status of the joint venture.
Regime of real estate
Foreign investors are free to acquire property rights on real estate on the territory of the Republic of Moldova, except for property rights over land of agricultural destination and land from the forest fund, for purposes of conducting entrepreneurial activity.
Tax and customs benefits
A foreign investor and a company with a foreign investment enjoy tax and customs benefits in compliance with the provisions of Moldovan law.
Investments cannot be expropriated or exposed to some measures with similar effect that directly or indirectly deprive the investor from their title of ownership or from their control of investment.
According to the current law, the investor benefits from the right to compensation for damages caused through infringement of their rights, including through acts violating their rights and interests on the part of the public authority or through other illegal actions of the latter.
Public authorities within their competence and in accordance with applicable law or the terms of the public-private partnerships can provide to investors additional guarantees, in particular by mortgage of their property.
Procedure for Dispute Settlements
Investment disputes should be settled amicably.
If the dispute cannot be solved amiably, then the dispute shall be settled by the competent court of the Republic of Moldova or by mutual agreement of the parties by arbitration.
The above is intended to provide a brief guide only. It is essential that appropriate professional advice is obtained. Our office will be glad to assist you in this respect. Please do not hesitate to contact us.