Investment promotion

Information for the investor.

One of the characteristic features of the current stage of economic development of ATU Gagauzia (Autonomous Territorial Education “Gagauz Yeri”) is the attraction of investments, the creation and wide dissemination of territorial production systems.

The Executive Committee of Gagauzia pays constant attention to the development of entrepreneurial activity in the autonomy and conducts a constructive dialogue with business with a view to solving pressing problems, proposing and adopting legislative acts to stimulate entrepreneurial and investment activities in the region. The basis of the stimulating policy is the openness of the region to domestic and foreign investors, the improvement of the business and investment climate in the region, as well as the creation of preferential terms for attracting investment in the main sectors of the region’s economy.

Gagauzia is an integral part of the Republic of Moldova, where preferential trade regimes operate with the CIS countries and the European Union. On November 1, 2016, the free trade regime with the Republic of Turkey entered into force. The free trade regime provides investors with excellent opportunities to expand their activities in Gagauzia. Investors will receive significant competitive advantages from these preferences, using trading opportunities in a 360 radius.

The main reasons for investing in the economy

ATU Gagauzia.

Favorable economic and geographical position, proximity to the Giurgiulesti terminal and the river ports of Reni, Izmail, Galati.
Special legal status
In accordance with its special legal status, Gagauzia is an autonomous territorial unit (ATU) with the right to make decisions and legislative acts in economic and fiscal policy.
Certainty for investors is the openness and flexibility of the regional authorities in terms of adopting incentive measures for investment activities;
– support provided to investors by the Gagauz government.
– stable and predictable economic situation in the region;
Available labor resources
Gagauzia offers qualified and multilingual labor resources, thanks to the five most common languages ​​in the region: Gagauz, Russian, Turkish, Romanian and Bulgarian. Accessible qualified, multi-lingual workforce can be highly demanded in the trade regimes in which the Republic of Moldova is involved. Service and export to the EU, the CIS and Turkey can be made easily, duty-free and without language barriers. In the Gagauz autonomy, there is the opportunity to train and train your own qualified human resources. On the territory of ATU Gagauzia there is a higher educational institution Comrat State University, which annually produces an average of 520 graduates. In the structure of Comrat State University there are 4 faculties: economy, law, agrarian, national culture. Pedagogical College and Agrotechnical College with more than 800 students, 3 vocational schools with a total of more than 600 students.
Law of ATU Gagauzia “On Investments”.
Adopted on August 9, 2016, stimulates the attraction of investments from 5 million lei (creating at least 10 jobs), ensuring investment protection and support.
Free Entrepreneurship Zone & Industrial Park.
ZPP PP “Valkanesh” and Comrat Industrial Park offer additional incentives, including the income tax rate in the ZSP is 6%, the unit of the customs service in place, working 24/7, 0% VAT on imported equipment, etc.
High business rating (44th in 2016 in the international business rating). Moldova constantly improves its business climate, well positioned in the ranking of Doing Business (44/190 in 2016).
Highly developed information infrastructure.
The communication infrastructure in Gagauzia is maintained at a high level and has an impeccable coverage of both wired and wireless communications. Stationary communication is available in all localities. However, the number of mobile communication subscribers is growing very rapidly with respect to fixed communication. In Gagauzia, a high level of development of telecommunications. There are 3 leading telecommunications companies offering 3G / 4G services to their customers.

Investment opportunities and preferences for investors in ATU Gagauzia.

The Gagauz autonomy has the authority to adopt its own legislative acts with a view to introducing economic reforms and stimulating investment activities. In August 2016, at the initiative of the Executive Committee, the People’s Assembly of Gagauzia adopted a new Law “On Investments”.

Domestic and foreign companies that invest in Gagauzia and open new jobs can take advantage of the regional Law “On Investments”, whether it is obtaining full-scale grants, preferences for taxes, investment subsidies for construction and installation works, the creation of production and technical infrastructure and purchase of equipment.

The Law of ATU Gagauzia “On Investments” defines the legal and economic framework for investment incentives, stimulates the attraction of investments from 5 million lei (creation of at least 10 jobs) guarantees protection of investments and support of investors by state bodies, and also provides arbitration disputes with the participation of investors.

Investment preferences granted by the Law of ATU Gagauzia “On Investments”.

Provision of full-scale grants by local governments – transfer of land, buildings, structures, machinery and equipment, computers and vehicles;
Reimbursement of income tax on entrepreneurial activities
Investment subsidies – reimbursement of up to 30% (not more than 10 million lei) of actual costs for construction and installation works, purchase of equipment without VAT; reimbursement of up to 50% of the cost of retraining personnel for the manufacture of garments;
A single window is the assistance provided to investors in the collection and preparation of documents by reducing the time for issuing permits.
Investment preferences are applied in the following areas: production, agriculture, infrastructure, energy efficiency and renewable energy, information technology, tourism and hotel services.

Attractive for the implementation of investment projects in the industrial sector are free economic zones and industrial parks, providing a number of tax and customs benefits, and state guarantees to their residents.

On the territory of ATU Gagauzia the Free Trade Zone “Production Park” Valkanesh “operates. Also, the leadership of Gagauzia is actively working on the construction of the infrastructure of the industrial park “Comrat” and the opening of two sub-zones of the ZPP PP “Valkanesh” on the basis of the industrial park “Comrat” and in the mun. Ceadir-Lunga on the part of the territory allocated for the industrial park.

ZPP PP “Valkanesh” and industrial park “Comrat” offer additional preferences for investors (residents).

According to the Law of the Republic of Moldova “On Free Trade Zones” investors are offered the following additional preferences:

Exemption from payment of customs duties and excises on goods imported into the ZSP, and then exported;
VAT on equipment and machinery: 0%;
The rate of income tax in ZAS PP “Valkanesh” is 6%;
Tax on customs procedures: 0.1% of the customs value of goods (outside the WFP 0.4%);
10 years of state guarantee of protection against adverse changes in legislation (15 years in the Freeport);
Free connection to the communications in ZSP PP “Valkanesh”;
Payments between residents can be carried out in euros / dollars between residents of ZSP;
exemption from income tax for 3 years with an investment of USD 1 million in the company’s fixed assets and / or development of the FEZ infrastructure (within 5 years with an investment of USD 5 million).
Additional preferences offered for residents of the industrial park “Comrat”.
free transfer of agricultural land to industrial lands;
normative (below market) prices for land acquired;

The Executive Committee of ATU Gagauzia approved the program “Support and Development of Small and Medium Business in ATU Gagauzia for 2016-2019”

Another factor of the investment attractiveness of the autonomy is the operational process of registration of enterprises in the Republic of Moldova.

The process of registration of an enterprise in Moldova

In accordance with the Law “On State Registration of Legal Entities and Individual Entrepreneurs” No. 220-XVI dated October 19, 2007, state registration of legal entities and individuals is carried out by the State Registration Chamber of the Ministry of Justice through its territorial branches. The state monopolist of the Registration Chamber of Moldova registers enterprises in a one-day and five-day period. There is also an urgent order for registration. All documents are submitted in the state language – in the Moldovan (Romanian) language.

Terms of state registration of legal entities.

State registration of legal entities, their branches and representative offices, as well as individual entrepreneurs is carried out on a business day within 24 hours, which is calculated from the working day following the day of submission of documents.

For state registration, the founders submit to the territorial offices of the Registration Chamber documents required by law and reserve the name of the company.

Documents required for state registration:

the application for registration according to the sample approved by the state registration authority;
decision on the establishment and constituent documents of a legal entity, depending on its organizational and legal form (in duplicate);
the conclusion of the National Commission for the Financial Market – for insurance companies, non-state pension funds and savings and loan associations;
a document confirming the payment of registration fee.
For the state registration of individual entrepreneurs, the following documents are submitted:

the application for registration according to the sample approved by the state registration authority;
a document confirming the payment of registration fee.
At the state registration the person and capacity of the physical person are checked.
For foreign investors

A company established by foreign entrepreneurs may be registered as one of the companies – a limited liability company or a joint-stock company. In addition, there are other registration forms in Moldova for foreign enterprises opening on the territory of the country: for example, a branch of a foreign company (for enterprises created entirely on the basis of foreign capital). In this case, the company is registered as a limited liability company.

If foreign investments in a company located in Moldova exceed $ 5 million, then they should be approved by the Competition and Antimonopoly Council of the Ministry of Economy of RM. Also, most likely, it is necessary to assure the document on registration in the embassy of your country.

Companies created with the participation of foreign capital pay a tax of 0.5% of the charter capital. In addition, all non-residents of the country must register with the police and take a work permit in the Department of Migration under the Ministry of Labor, Social and Family Protection.

For the state registration of legal entities with foreign investments, in addition:

an extract from the register in which a legal entity with foreign investments is registered, translated and notarized;
constituent documents of a foreign legal entity.
Documents for state registration are prepared in the state language and submitted to the state registration body by the founder or his representative authorized by a power of attorney certified in accordance with the law.

Electronic documents can be sent to the state registration body via electronic networks in compliance with the provisions of the Law on Electronic Document and Digital Signature No. 264-XV of July 15, 2004 and the Government’s regulations in this area.

The date of submission of documents for state registration is the date of their receipt by the state registration body.

Selection and reservation of the name of the legal entity.

The legal entity carries out its activities under its own name, registered by the state registration authority.

At the request of the founder, the name of the legal entity may be reserved by the state registration body for a period of up to six months.

To reserve a company name of the future company it is possible on a site of electronic services (cost of this service makes 71 lei for half a year). The founder should choose at least five names of the future firm, since most of the good and euphonious names are most likely already taken. In addition, you can also use the additional service to verify the name. After paying for the unoccupied title, you will receive a receipt indicating the time of registration and the registrar.

Prior to registration of a legal entity, the state registration body verifies the name for applicability and distinctiveness, and, in cooperation with the National Terminology Center – competent in the field of languages ​​(terminology) public authority, verifies the language correctness of the name.

When the name is changed, the legal entity is obliged within 30 days to require the state registration authority to register this change in the constituent documents and make the corresponding entry in the State Register.

The constituent documents of the legal entity must contain the name and location of the legal entity (the legal address of the company may not coincide with the address of the propiska of one of the founders), the procedure for managing its activities and other information provided by law for legal entities of the respective type.

If you change your location, a legal entity is obliged within 30 days to require the state registration authority to make an appropriate entry in the State Register and register the relevant changes in the constituent documents.

Fee for state registration and provision of information.

State registration of legal entities and individual entrepreneurs, registration of changes made to the constituent documents and data entered in the State Register, as well as the provision of services are carried out for a fee.

Information from the State Register is provided to public authorities free of charge only in electronic format.

For the state registration of legal entities, their branches and representative offices and individual entrepreneurs, as well as for registration of changes made to the constituent documents and data entered in the State Register, carried out at the request of the person urgently within four hours, the fee increases fourfold .

After the company name has been reserved and all documents have been certified by the notary, the founder needs to open a temporary account with the bank, which upon completion of the document processing process will become a permanent account of the company. The authorized capital of the company is added to this account. And, if the company has one founder, you will have to pay the whole amount at once. If there are more founders, then it can be introduced in parts (40% at a time, and the rest – within half a year after the company registration).

Upon registration, a legal entity is assigned a state identification number (IDNO) confirming the registration of a person in the State Register and taking it into account by the tax authority. State identification number, which is both a fiscal code of a registered legal entity, is indicated on the title page of the constituent documents.

As part of the state registration procedure, the state registration body implements tax, statistical, medical and social accounting of a legal entity by transferring to the relevant authorities in electronic format data on its registration.

A legal entity is considered registered from the date of the decision on registration.

After passing through all the registration procedures, the following documents will be issued to the legal entity: a certificate of registration (Certificat de inregistrare), an extract from the State Register (Extras din Registral de statulo persoanelor juriice), a decision (Decize privind inreagistrara modificarilor), a seal and a document confirming it and the charter. On the same day, when you register your company, you must sign an order on appointment as chief accountant.

Immediately after the registration of the company, the fiscal code and bank account must be registered with the tax service. In addition to the documents received in the registration chamber, the tax inspection must submit a lease, notarized, or the permission of the owner of the office or other premises leased by you to use this address as your company’s legal address.

In the National Bureau of Statistics it is necessary to obtain a document with the codes of activity of the enterprise or organization. Usually choose about five. In the future, you can change them and add new ones. As in other countries, some activities require a license. Now the list of activities that are subject to licensing includes 55 items. Among other things, this includes audit, insurance, financial operations, trade in alcohol products, breeding of livestock, horticulture, viticulture, growing berries, logistics services, etc.

So, the stages of company registration in Moldova:

1. Selection of economic activities. What will the enterprise do? The choice of economic activities is not limited. The exception is the licensed activities. For the company’s charter there will be enough 5 types.

2. Selection and reservation of the name. As a rule, several names are required for cases of coincidence with already existing company names. The Registration Chamber reserves the name of the future firm for a month or six months. Practically it is possible to reserve the name of the enterprise for eternity, paying at the end of one of the specified periods the state duty for a new reservation of the name.
After paying the state duty, the lawyer gives you confirmation of the reservation of the name. The document specifies the fiscal code of the reserved name (in fact – the future enterprise) and your data.

3. The legal address of the future company or firm. Here you will need either the Moldovan address of the future director, or you will need to use the address of one of the founders (Moldovan resident) or you should order a service Legal address, for example, in our company.
4. Determination of the candidacy of the director. Appointment of the director. As a rule, the director is appointed from among the founders. But you can hire a third party. You should keep in mind that the director does not have the right to combine the position of director (administrator) and another position, if he is not a co-founder of the enterprise being created.
5. Accounting services. Determine in advance with the accounting department, since “an urgent search for an accountant” can interfere with the normal operation of the newly opened enterprise. Here we recommend contacting an outsourcing company, for example, our company, which provides accounting services. Why? Firstly, you do not have to create conditions for work for your future accountant (as required by law), secondly, you do not have to make social deductions to the state budget in the amount of about 45% of the accountant’s salary, in the third, has a higher responsibility – answering its working capital and property.
6. Preparation of constituent documents, Charter in Romanian (Moldovan) language. Here all the wishes of the client are taken into account. Whether he wants the shares in the capital of the enterprise to be divisible or not, to expand the powers of the director or leave them standard by law, etc.
7. Preparation if necessary (if founders are legal entities or one of them) relevant decisions and minutes of the general meeting. Preparation of the entire package of documents from the investor of a legal entity and checking the “cleanliness” of an individual for debts to creditors or the state.
8. Definition of authorized person. Issuance of a notarial power of attorney. Our company can represent your interests in the Registration Chamber on the basis of an appropriate power of attorney.
9. Submission of documents to the Registration Chamber of the Republic of Moldova. The entire set of documents prepared for registration is submitted to the Registration Chamber with the registration deadlines. The lawyer who accepted the documents – sets the date of registration.
10. Select a bank and open a temporary account. To the account of the company (in our case LLC) the charter capital is paid in proportion to the shares and the amount specified in the Charter, but not less than 5,400 Moldovan lei. In some cases, the authorized capital should be several times, in tens and hundreds of times more. This mainly relates to the licensed activities.
11. Obtaining documents on registration of a new legal entity in Moldova. This procedure can also take place by proxy.
12. Opening a permanent settlement account in a bank. Here you need to immediately determine which accounts you will have: in Moldovan lei, in foreign currency – in what? There are banks that open multi-currency accounts. Also, immediately decide whether you need an Internet or a client-bank to manage the account from a distance. Also, immediately make a reservation and determine who will have the signature in the bank. It can be a trustee. For example, a lawyer or director of a company.
13. The registration of the enterprise in all state bodies, including the tax inspection. In Moldova, the program of automatic registration of an enterprise in the Moldovan tax base was launched. However, for unknown reasons, the tax still requires the presence of a director or an accountant or a trustee after registration of the enterprise within a month with the relevant documents. In order to avoid red tape and waste of your time, you can also order this service.
14. Preparation of primary employment contracts. This is the requirement of the labor legislation of the Republic of Moldova. All employees of the enterprise must have an employment contract and a personal card of the employee with a photograph. At first, accordingly, it is necessary to immediately prepare an individual labor contract with the director (administrator) of the enterprise, and it is desirable to do this before the registration of the enterprise.

An additional advantage for running business in the autonomy is low operating costs.

An attractive level of salary plan in the region. For example, the level of wages in the autonomy in 2016 is 165 euros – this is the lowest cost of labor in Europe. The rent for office and industrial premises is also at an attractive level, compared with other regions and countries. The tax base as a whole is identical to the republican one.