investing guide 2014

7/26/2019 Investing Guide 2014

1/122

www.pwc.com/md

Investing Guide

Moldova 2014


2/122


3/122


4/122

Dear Reader

Moldovas objective is to provide a transparent and supportive business environment, competitive at the

regional level. The Constitution provides non-discriminatory treatment and guarantees the inviolability of

both foreign and domestic investments by ensuring the supremacy of

international law, the maret economy, private property and separation of power between !overnment

branches.

Moldova is a rapidly developing country and, with the support of development partners, has entered a

deep transformational phase in the process of negotiating the "ssociation agreement with the #uropean

$nion. This means adopting the ac%uis communautaire in most areas, adopting and implementing

international standards, and infrastructure rehabilitation, all of which is already resulting in attractive

investment and business opportunities for local and international business.

&hat Moldova needs most at the moment is foreign private direct investment in innovative production,

because '() also means technology, now-how and higher turnover.

The Ministry of #conomys priorities are to improve the business environment, increase economic

competitiveness in light of the implementation of the (eep and Comprehensive 'ree Trade

Agreement with the EU, implement infrastructure improvements, promote energy efficiency, etc.

Moldova offers a silled and relatively competitive worforce combined with a uni%ue opportunity to

access western and eastern marets in a free trade regime.


5/122

For industrial producers, Moldova also offers specific locations in Industrial Parks and Free

Economic ones with fiscal and administrative incentives, support from the state and free trade

regimes with a maret of *++ million consumers in the #$ and C).

ew industrial sectors are developing in Moldova, such as )CT, automotive, energy and renewables,

manufacturing, etc. Moldova is raned in the top + countries in the world for speed, penetration and

availability of the )nternet.

This investment guide provides a fair image of Moldova. ) hope it will answer most of your %uestions

about my country and help you to tae an investment decision.

!ast "ut not least, I would like to e#press my gratitude to Pricewaterhouse$oopers for taking the

lead and preparing this )nvestment !uide to Moldova

Andrian Candu

%eputy Prime Minister

Minister of #conomy


6/122

Partner Letter

It is with great pleasure that Pw$ participates in the pu"lication of the 0)nvesting !uide Moldova

+123, in cooperation with the

Ministry of Economy and MIEP&.

4ie many countries in the region and around the globe today, Moldova continues to face e5ceptionaleconomic challenges.

evertheless, the Moldovan !overnment is committed to taing the necessary steps to encourage

investment and ease the burden of doing business in Moldova.

This guide aims to provide a comprehensive overview of the business environment as well as some of

the administrative practicalities of investing and conducting business in Moldova. &e trust you will findthe information useful as you pursue opportunities in this emerging market.

Pw$ has "een advising companies and individuals on how to do "usiness Moldova since

'((). &ur significant e#perience in the local market, as well as the strength of our regional and

glo"al networ, bring you the right mi5 of local and international e5pertise to help you improve the

performance of your business in Moldova.

6ours faithfully


7/122

Ionu Simion

Partner, Pw$


8/122


9/122

Why invest in Moldova?

'avourable geographical position at the crossroads of commercial routes

Pro#imity to large world markets *European Union and $ommonwealth of

)ndependent tates7

Platform for manufacturing and e#porting "oth to the $I+ and to the EU

Competitive general corporate income ta5 rate in the region 8 19

Ta5 and customs framewor similar to that of the #$

Considerable networ of operational (ouble Ta5 Treaties and )nvestment

Protection Agreements

Maret access through three 'ree Trade "greements including:

-& mem"ers *worldwide

Autonomous -rade Preferences *EU countries

%eep and $omprehensive Free -rade Area *%$F-A


10/122

$EF-A mem"ers *most /alkan countries

$I+ mem"ers *with certain e#ceptions

#ntrepreneurial activities under preferential terms and conditions developed in free

economic ;ones

&ell-silled multilingual worforce


11/122

5|Investing Guide Moldova 2014


12/122

Moldovan business

environment


13/122


14/122

6


15/122

Central and territorial organisation

The e!ubli" o# Moldova is a s$all%

densely !o!ulated "ountry% &hi"h gained

its inde!enden"e and be"a$e a sovereignstate on 2' August 1((1)

It is situated in +outh Eastern Europe, north of the

/alkan Peninsula. -he total area is 00,120 s3uare

km. -he distance "etween the 4orth and the +outh

e#tremities is 056 km, and from East to est is '56

km. Moldova shares "orders with


16/122

:omania

C h i s i n a u

Muni"i!alities

Autonomous regions

Ukraine

$hiinBu

!agau;ia

/BlCi

Transnistria

/ender

Districts

"nenii oi

$imilia

!lodeni

>ngerei

/asara"easca

Criuleni

nceti

oroca

/riceni

%ondueni

)aloveni

+trBeni

Cahul

(rochia

4eova

GoldBneti

Cantemir

%u"Bsari

isporeni

Gtefan HodB

$BlBrai

EdineC

&cniCa

Taraclia

$Bueni

FBleti

&rhei

-eleneti

Floreti


17/122

:cani

Moldova Administrative Map

:aions *counties

'|Investing Guide Moldova 2014


18/122

International agreements and organisations

Republic of Moldova is a member of the following key organisations*

$nited ations

Council of #urope

$ommonwealth of Independent +tates *$I+

-he International /ank for :econstruction and %evelopment *I/:%

-he European /ank for :econstruction and %evelopment *E/:%

orld -rade &rganisation *-&


19/122

European Union

#uropean )ntegration is a fundamental priority of ( 4ovem"er

>6'0 on the occasion of the Eastern Partnership +ummit in

Hilnius. It is e#pected that the Association Agreement will

significantly deepen MoldovaJs political association and

economic integration with the #$. )t includes the gradualimplementation of a (eep and Comprehensive 'ree Trade

Area and goes 3ualitatively "eyond the current Partnership

and Cooperation "greement wherever possible.


20/122

+

)t is anticipated that the "ssociation "greement between the

#uropean $nion and the


21/122

entitlement to preferential arrangements is compliance with the

EU rules of origin of products. A-P have offered a "asis for

increasing the competitiveness of Moldovan products e5ported to

the #$ and have also stimulated the efforts of Moldovan e5porters

to penetrate alternative marets to those in the C).

The #$ has adopted a (ecision amending and e5tending the

A-P until %ecem"er >6'5, increasing the 3uota for wine

products and a number of sensitive agricultural products.

$onse3uently, Moldova will "e a"le to further "enefit fromthe EU Autonomous -rade Preferences prior to the entry into

force of the (C'T".

CI&

Moldova is part of the $I+ Free -rade Area *F-A. -he

respective 'T" "greement entered into force on + eptember

+1 and repealed the previous bilateral free trade agreementswithin the C). The C) 'T" is currently applicable for si5 C)

countries.

The aim of this "greement is to establish conditions for a free

transfer of goods and services, to provide mutual trade balance, to

stabilise domestic economic conditions and to promote growth of

the economic potential of the member states on the basis of mutual

cooperation.

"lthough the 'T" provides for a free ta5 trade regime, there are

still certain e5ceptions, usually asymmetric in nature.

)n ++, !eorgia, $raine, ";erbaijan and Moldova signed the!$"M agreement regarding the creation of a free trade ;one. )ts

scope is to eliminate customs fees and other ta5es with e%uivalent

effect and %uantitative limitations on trade, as well as to eliminate

the barriers for free movement of goods and services.

Central European Free Trade greement

!CEFT"

In >66) Moldova signed the $entral European Free -rade

Agreement *$EF-A >66), which came into force for our

country on ' May >66=. $EF-A allows duty free access to

the maret of countries from the outh-#astern part of #urope. The

C#'T" agreement has radically evolved since


22/122

Dou'le Ta( Treaties and Mutual $rote#tion

o% Investments Treaties

Moldova has signed comprehensive double ta5ation agreements

with 2( countries, of which 2= are in force.

The (ouble Ta5 Treaties may provide for more favourable ta5

regimes than those provided by the local legislation. "s guidance

on the interpretation of (ouble Ta5 Treaties and, correspondingly,

for ta5 administration purposes, the

$ommentaries to the &E$% Model -a# $onvention on

)ncome and on Capital are used by the ta5 authorities and

ta5payers.

"dditional guarantees and support to investors are offered "y 0(

"ilateral treaties signed "etween Moldova and various

countries for the mutual protection of investments.

The )epu'li# o% Moldova has 'een a %ull mem'er o% the Energ*

Communit* Treat* sin#e 2010+

Economic overview

In 201,- Gross Domesti# $rodu#t !GD$" totalled MD. //-/ million !EU) -44 million"- 3ith an

in#rease o% +/ !in #ompared pri#es" %rom the level in 2012+ Thus- the Moldovan e#onom* en5o*ed

a revival in 201,- %ollo3ing the 2012 re#ession+

'56

'26


23/122

'06

'>6


24/122

''6

'66

(6


25/122

16

=6

)6


26/122

56

>66=

>661

>66(

>6'6

>6''

>6'>

>6'0

>6'2

>6'5

>6')

>6'=

>6'1


27/122

9%P *compared to the last year 9%P *current prices

KPreliminary forecast of 9%P for >6'2;>6'= *sourceL Ministry of Economy

The economy of Moldova is highly dependent of remittances, which

are around >2 of 9%P1.

Production of goods in >6'0 contri"uted to increasing the

9%P with around >), while services contri"uted with

around 51.( *i.e. the main "ranches "eing transport and

14ational /ureau of +tatistics *Main macroeconomic indicators '((5 ; >6'0

10

communication services, wholesale and retail trade services,

construction activities, etc.7.

The e5port volume for the last 1+ years has increased by more

than three times to U+% >,0(( million, with an increase of

'' in >6'0 from the >6'> level.

In >6'0, e#ports of goods to EU countries totalled U+%

','26.( million *i.e. '>.5 more than in >6'>, accounting

for 2=.) of total e#ports *compared to 2).( in >6'>.

E#port of domestic goods constituted U+% ',)'=.0 million

*)=.2 of total e#ports, registering an increase of ').2

compared to +1. #5ports of goods to C) countries totalled

U+% (>2 million, accounting for 01.5 of total e#ports, with

a decrease of +.29 compared with +1.

)mport volume has increased four times in the last 1+ years, while

in >6'0 it registered an increase of 5.2 compared with

>6'> and constituted U+% 5,2(>.= million. Moldova had a

negative trade "alance in >6'0 *amounting to U+% 0,6(0.=

million7.

-he annual inflation rate in Moldova was 5.> for >6'0.

-he unemployment rate was 5.' in >6'0 *a decrease from

5.) in >6'>. -he total amount of unemployed people

includes:

)6.> men and 0(.1 womenN

51.0 ur"an population and 2'.= rural population.

Legal framework

!eneral provisions


28/122

.egal s*stem

The


29/122

amount of shares in bans and prior approval from Moldovan

4ational /ank "efore ac3uisition and for the ac3uisition of

agricultural and forested land.

Pu"lic authorities intending to develop a new investment

policy are re%uired to organise public consultations before

implementing such policies.

)nvestments cannot be subject to e5propriation or to any other

similar measures which can directly or indirectly deprive investors

of their property right or the right to control investments, unless thefollowing conditions are met:

-he measure is undertaken for the general pu"lic goodN

-he measure is not discriminatoryN

Preliminary and e3uivalent compensation of damages is given.

)nvestors have the right to sue public authorities for damages

caused due to illegal actions and decisions. Compensation is paid

in the currency of the investment.

IC&ID Convention

/y ratifying the $onvention on the +ettlement of Investment

%isputes "etween +tates and 4ationals of &ther +tates

*I$+I% $onvention in >6'', Moldova undertook to recognise

any decision *award issued "y I$+I% as "eing mandatory and

committed to ensuring the enforcement of the pecuniary sanctions

imposed by the award on its territory.

$rivatisation

-he privatisation process "egan in '((' with mass

privatisation of residential housing, most small-scale traders and

over half of small;scale enterprises. After '(() privatisation

moved to cashprivatisation with the goal of selling most of the

remaining state assets, in particular large-scale enterprises in the

energy and telecommunication sector. +everal larger

Moldovan firms havebeen sold for cash and debt assumption to

strategic investors. The sale of a cement mill to a leading

producer, leather processing firm, several te#tile producers,

several wineries and a hotel in the capital topped the list of

transactions.

4ew provisions concerning privatisation were approved in

>66=by the 4aw on public property management and its

privatisation. Under the law, the Agency for Pu"lic Property

is the authority which carries out the state policy in the field

of management and privatisation of public property, post-

privatisation activity and e5ercises the functions of the owner of

state property.

The implementation of this law has mared the beginning of a

new stage in the privatisation process, characterised by widening

the types of enterprises subject to privatisation, also


30/122

including those in infrastructureN diversification of the

privatisation methods, as well as shifting the privatisation deals to

the capital maret and restructuring privatised enterprises.

$u'li#9private partnership

&ne of the growing;interest programmes lead "y the

9overnment is the Pu"lic;Private Partnership *PPP. -he

new legal framework for PPP has "een recently approved, of

which the most important are the 4aw on public-private

partnerships and the 4aw on concessions.

ince the adoption of the necessary framewor, the !overnment

has turned to the private sector and promoted the PPP concept toprovide a wide range of pu"lic services previously delivered

solely "y the pu"lic sector. Pu"lic services and infrastructure in

the


31/122

$nder Moldovan legislation, there is no concept of a registered

commercial "ranch of a foreign entity. A representative office

established in the


32/122

The competition legal framewor is formed by the newly-adopted

4aw on competition and the 4aw on state aid.

The 4aw on competition provides the legal framewor for the

protection of competition. )t particularly covers the allowance

and / or control of mergers, abuse of dominant position, unfaircompetition, as well as being aimed at preventing and countering

anti-competitive practices. The secondary legislation supporting

the implementation of the law was approved in >6'0.

-he !aw on state aid entered into force in August >6'0. It

provides for the legal framewor for the methods of authorising,

monitoring and reporting state aid granted to individuals and legal

entities in all areas of the national economy, e5cept agriculture, inorder to maintain a normal competitive environment. "ny state aid

is offered subject to preliminary approval of the Competition

Council.

The Competition Council is entitled to supervise compliance with

competition and state-aid provisions, initiate the e5amination of

any alleged breaches of competition legislation, by its own motion

or at the re%uest of any individual or enterprise affected by the

alleged infringement. $pon the violation of the 4aw, the

Competition Council is entitled to re%uest termination of theinfringement to prescribe "ehavioural or structural remedies

and O or apply fine.

The aim of the new legal framewor is to maintain a competitive

maret and is particularly intended to implement #$ provisions

into national law.

Consumer prote#tion

Consumer legislation contains provisions on the safety of

consumers, liability of producers and sellers for breaches of the

law and their contractual obligations, procedure for concluding

contracts, establishing the shelf-life of food and non-food

products, replacement of products or reimbursement of their cost,

etc.

-he Agency for $onsumers Protection is the competent

authority in this field. -he recent amendments to the

Moldovan competition legislation transposed certain provisions of

the #$ legislation, e.g. concerning unfair business-to-customer

commercial practices, unfair terms in consumer contracts.

Moldovan legislation is under #ontinuous

modi%i#ation 3ith the aim o% harmonisation 3ith EU

regulations

$ri#e #ontrols

There are certain areas in which the !overnment establishes a limit

on the prices for products and services, such as for state-owned

land and mineral resources, transport and post services, medicines,

natural gas, heating and electrical energy, etc. The state usually

intervenes in the formation of prices by limiting the trade mar-up.

$atents- trademar7s and #op*rights

The laws regulating intellectual property in Moldova mainly cover

patents on inventions, copyright and other related rights, industrial

design protection, trademars and appellations of the origin of

goods, plant variety protection and the protection of integrated

circuit topographies.

The state regulatory body in charge of the legal protection of

trademars, patents and copyrights on the territory of the


33/122

)eal estate

The ownership title and other real rights over immovable assets

*e.g. servitude, usufruct, mortgage, etc. are su"


34/122

a! framework

From the ta( perspe#tive- there are 4 operational Ta( Treaties %or voidan#e o% Dou'le Ta(ation

#on#luded '* Moldova 3ith other 5urisdi#tions+

lthough not a mem'er o% the :rganisation %or E#onomi# #o9 operation and Development

!:ECD"-Moldova applies #ommentaries on the rti#les o% the :ECD Model Ta( Convention in

interpreting Dou'le Ta( Treaties+

Corporate )ncome Ta5

Moldova has a #ompetitive general #orporate in#ome ta( !CIT" rate in the region ; 12+ lso-

the %ollo3ing rates are appli#a'le661 8 >6'', for which the withholding rate

is '5

'5 preliminary - from interest paid to individuals. -he "eneficiary deducts *i.e. recovers the '5 - from

annual income ta5 due.

'> preliminary - from royalties paid to individuals. -he "eneficiary deducts *i.e. recovers the '> - from


'5 preliminary - from interest paid to individuals. -he "eneficiary deducts *i.e. recovers the '5 - from


=on9residents

$nder the +12 domestic ta5 provisions, the following &?T

rates apply upon payments to non-residents:

) for dividend payouts, e5cept for dividends for the

profits received in >661 8 >6'', for which the withholdingrate is '5N

=

and employment related incomeN

1*9

19 for other income.


39/122

16


40/122

Halue;added ta# *HA-

8AT

+9

standard HA-

*9

certain types of supplies *e.g. "read, "akery products, milk, gas, certain

pharmaceutical products, sugar, phytotechnical products, etc.7

6K

certain supplies *e.g. e#port of goods O services, international transportation, supplies to

and from the territory of 'ree #conomic Bones, import and / or supply of goods and

services destined for technical assistance pro


41/122

do not fall under any specific HA- e#emption.

+uch reverse charge HA- is due "y Moldovan

company and payable to the Moldovan budget at

the date of e5ternal payment.

-he HA- e#emption for long;term assetsintended to "e included in the statutory

*social capital has "een reintroduced, as of

=anuary +12, provided certain conditions are

met.

Input HA- incurred on ac3uisitions of goods and

O or services may "e deducted, provided it is

incurred "y a HA- registered payer to perform

HA-;a"le supplies within its "usiness activity.

A company is re3uired to register for HA-

purposes if the total turnover within the last 1

consecutive months reached the threshold of

M%! )66,666 *appro#imately EU: 0>,=66.

-he optional registering as a HA- payer may

"e performed when the threshold of M%!

'66,666 *appro#imately EU: 5,566 is

reached and other compliance re%uirements are

observed.

+hould the company register a deducti"le

input HA- e#ceeding its output HA-, this

"alance could "e partially refunded, only if

the company carries out a specific range of

"usiness activities *e.g. e#port supplies,

international transportation services,

production of baery and dairy products, leasing

activity, etc.. &therwise, this HA- amountmay "e carried forward to the following

months and offset against the

$ompanyJs future output HA- lia"ilities.

In addition, HA- payers performing capital

investments in Moldova may "e entitled to

refund the recovera"le HA- related to this

kind of capital investment. 4ote that specific

conditions should be met and there are a few

e5ceptions to this rule *e.g. "uildings and

certain transport items. !egal entities not

registered as HA- payers and performing

capital investments *e#penses related tovehicles for transportation, are entitled to

"enefit from a refund of HA- under certain

conditions.

1'|Investing Guide Moldova 2014


42/122

Ta5ation of resident individuals

esident individuals

= K

annual income up to M%! >=,15> *EU: ',5'(

1*9

annual income e#ceeding M%! >=,15> *EU: ',5'(

)

dividend income *'5 for the period >661;>6''N non;ta#a"le prior to ' 7anuary >661

)KK

social security contribution at the level of employee

>0

social security contribution at the level of employer

29

health insurance contributions at the level of both employee and employer

e5empt

interest incomes from deposits placed in Moldova until ' 7anuary >6'5


43/122

In the Republic of Moldova, there are two progressive Personal income tax (PIT rates !" and #$"%

The &" emplo'ee social securit' contribution rate is applied to a base capped at five times the national average salar' for the 'ear, i%e% M) *#,#*+

(approximatel' -R #,#+* multiplied b' #*%

-he legislation provides an annual fi#ed social security contri"ution for other categories of

ta#payers of M%! 5,=21 *appro#imately EU: 0'6 and for an annual fi#ed amount of medical

insurance contribution paid by other categories of ta#payers, which constitutes M%! 2,65)

*appro#imately EU: >>6.

Ta5ation of foreign individuals

According to Moldovan ta# law, foreign citiDens

*individuals "ecome Moldovan ta# residents if

they stay for at least '10 days during the fiscal

year *which corresponds to the calendar year.

The income derived by foreign individuals falls

under the same

PI- rates as for resident individuals.

/ased on Moldovan ta# law, the o"


44/122

)ncome obtained by the individual is ta5ed

on a cash basis.

"dditionally, for foreign citi;ens and stateless

people employed under labour agreements in

Moldova, social security contributions are

calculated in a similar way as for Moldovan

citiDens *i.e. ) at the employee level and

>0 at the employer level7.

o health insurance contributions are re%uired

for foreign citiDens seconded to Moldova *i.e.

no local la"our agreement. -he respective

foreigners may "enefit from private optional

health insurance.

'oreign individuals with local labour agreements

have to pay health insurance contri"utions as

Moldovan citiDens *2 for each payer category

- employers and employees7.

1+

&ther ta# issues

)ulings

#ven though the law does not provide for the

possibility of obtaining binding rulings, comfort

letters can be obtained. Ta5payers that

inade%uately calculated ta5 liabilities due to

incorrect written e5planations issued by the

Moldovan Ta5

Authorities are not su"


45/122

From a ta# perspective, control is the

ownership *either directly or through one or

more related parties of 56 or more in

value of the capital or voting power of one of the

companies. )n this case, an individual is treated as

owning all e%uity interest owned directly or

indirectly by members of ones family. Two

individuals are related parties if they are spouses

or relatives up to the fourth degree.4ossesincurred in dealings between related parties

carried out directly or through intermediaries are

treated as non-deductible for C)T purposes.

According to current Moldovan ta# law, there

are no formal -P documentation re%uirements.

)t is e5pected, however, that such re3uirements

may "e introduced starting >6'5.

$ermanent esta'lishments !$Es"

Under the applica"le legislation, a PE is not

considered as a form of legal organisation. A

PE represents a purely ta# concept, being

registered with the MT".

A PE may "e deemed to e#ist if a non;

resident entity carries out, wholly or partly,

entrepreneurial activity on the territory of

Moldova either:

directly through a fi#ed place of "usinessN

indirectly through a dependent agent.

Under Moldovan ta# law, PEs are treated as

local legal entities. In general, a PE would "e

su"


46/122


47/122

"oreign #irect Investment

Total '()

4et flow of foreign direct investment

into the national economy increased

considera"ly in >6'0, amounting to

U+% >0'.0 million *net value, with an

increase of 0>.' compared to >6'>.

4et foreign direct investment flow is

differentiated "y sector.

-he inflow of net direct foreign

investments into the economy of

Moldova amounted to U+% 021.'

million in >6'0, compared to U+%

056.' million in >6'>. -he "iggest

portion was allocated towards share

capital ; 5>.1 *U+% '10.( million.

&utflows related to F%I were valued

at U+% '').= million, compared to

U+% '==.2 million in >6'>, mainlydue to repayments of loans

previously contracted from foreign

investors *)5.' of total outflows.

-otal stock of foreign direct investment

gained "y 0' %ecem"er >6'0 was

valued at U+% 0,))1.0 million,

consisting ofL e3uity in the share capital

and reinvested income amounting to $(

>,=6(.5 million and intercompany

loans *other capital ; U+%

(51.1 million.

Two thirds of the foreign capital present

in the


48/122

(666

'166

')66


49/122

1666

'266


50/122

=666

'>66


51/122

)666

G


52/122

5666

'666

D


53/122

166


54/122

2666

P

)66

711.5

0666


55/122

266

541.3

>666


56/122

>66

190.7

258.5

208.3

208

288.2

175.1

231.3

'666

146.2


57/122

73.7

6


58/122

6

>660

>662

>665

>66)

>66=

>661

>66(

>6'6

>6''

>6'>

>6'0


59/122

FDI

F%I*mil.U+%

&ther investments *mil.U+%

9%P *mil.U+%


60/122

+ourceL 4ational /ureau of +tatistics

22


61/122

Major 'oreign )nvestments


62/122


63/122



64/122

In"entives #or investors

In#or$ation te"hnology

.IT/ industry

%uring >6'> ; >6') Moldovan

companies whose main activity is

software development *I-

companies and their employees

may "enefit from a range of ta#

incentives *su"


65/122


66/122

24

Investment

support

Invest$ent

Moldova continues to tae steps

towards developing a stronger

economy, reforming a cumbersome

regulatory framewor, combating

corruption and adopting reforms

aimed at improving the "usiness

climate. Poor physical

infrastructure, cumbersome

licensing procedures, e5cessive

permit re%uirements and

proliferation of fee-for-services to

public authorities and commercial

organisations all contribute to a

business environment that remains

among the most challenging in the

region. 'or e5ample, in the (oing

/usiness %ealing with

$onstruction Permits indicator,

Moldova ranks ')1th out of '15

countries and has twice as many

procedures as the average for

&E$% countries.

After a prolonged recession inthe '((6s, 9%P has grown for

seven straight years and inflation

has decreased. Moldova, which

is consistently raned among the

poorest countries in #urope, relies

heavily on investments, foreign

trade and remittances sent by

Moldovans woring abroad for

economic growth. 6'> the Moldovan

Parliament approved the

4ational %evelopment +trategy

*4%+ ?Moldova >6>6@. -he 4%+

0Moldova ++3 was developed

through broad-based consultations

with staeholders and civil society.

"ttracting '() is critical to

enhancing several pillars of the

(.


67/122

$uman capital

(emographic data

;o!ulation 9du"ation

-he :epu"lic of Moldova has a

population of 0.55=) million.

Moldovans represent the largest

ethnic group *=5.1, followed "yUkrainians and :ussians *1.2

and 5.( respectively and

smaller minorities such as the

9agauD minority *an ethnic group

of -urkish origin, 2.2 and

/ulgarians *'.(.

"ccording to the latest data, 2.9

of the population live in ur"an

areas. $hisinau municipality has

a population of 162.5 thousand

people and the /alti municipality

has '2(.1 thousandpeople.

,anguage

The main language spoen in

Moldova is


68/122

Students by Indicators% ypes of institution and &ears

200+=0(

200(=10

2010=11

2011=12

2012=1

Thousand

Total

)6=.(

5=(.1

55=.(

50=.'

5'1.1


69/122

!eneral schools

20).'

2'5.5

0().5

01'.2

0)).6

Hocational schools

>2.0

.

1.2

>6.0

'(.)


70/122

Colleges

0>.=

0>.>

0>.>

0'.2

06.=

?igher educational

''2.(

'6(.(

'6=.1

'60.(

'6>.5

institutions


71/122

Per '6,66

Total

',=62

',)>=

',5)).(

',561

',2)'

inhibitants

!eneral schools

1,

','))

',''0.)

',6='


72/122

',60>

Hocational schools

)1

)>

)6.>

5=

55

Colleges

*

(6

(6.0

**

1)


73/122

?igher educational

0>>

061

06>.1

>(>

**

institutes


74/122

4abour costs

9$!loy$ent in"o$e

#mployee gross income includes:

"asic payN

overtime payN

supplementary payN

awards and "onusesN

compensation from unused holiday or vacation timeN and

"enefits in kind *e.g. housing allowances, compensation

for school fees, food and personal travel e5penses7.

Moldovan ta# law provides for special rules *i.e. ta#

e#emption regarding income obtained by members of

diplomatic missions, and other missions accredited as such, and

their personnel.

The annual personal allowance provided for Moldovan

residents is M%! (,5') *appro#imately EU: 5>6.

Individuals can also "enefit from a spouseJs e#emptionof the same amount, provided the spouse does not use it in

the respective year.

In addition, individuals "enefit from an annual allowance

of M%! >,'>2 *appro#imately EU: '>6 for every

dependant *e#cept for those disa"led since childhood,

who are entitled to M%! (,5') *appro#imately EU: 5>6

e#emption per year. If a dependant has several carers,

e5emptions for dependants will be given to every carer.

o"ial se"urity "ontributions

Contributions to the ocial 'und are mandatory for Moldovan

citi;ens, but unlie ta5es they have an e5act destination and

are available for refund to the ta5payer in the form of

pensions, allowances, etc.

'or more details on social security contributions, please refer

to the 0Ta5ation of individuals3 section above.

>ealth insuran"e "ontributions

The mandatory health insurance contribution, calculated as a

percentage of wages and other forms of payment and

remuneration.

'or more details on health insurance contribution please refer

to the 0Ta5ation of individuals3 section above.

Te$!orary &or in"a!a"ity related "osts


75/122

"llowances for temporary wor incapacity due to common

illnesses or accidents unrelated to work *with some

e#ceptions are paid as follows:

the first five calendar days ; paid "y the employerN

starting with the si5th calendar day 8 paid by the social

security state budget.

26 .ource/ 0ational 1ureau of .tatistics


76/122

Salary inflation history and forecasts

Pw$ Moldova annually *since >66= performs a +alary and /enefits +urvey 8 Payell Moldova. -he participants in the

Payell Moldova +urvey are companies from different industries *i.e. I-$, FM$9 Industries, Pharma, and /anking

including the leaders on the Moldovan maret.

The table below describes the average monthly salary in the


77/122

Payell

M%! 5,5=1 *EU: 062

M%! 5,5)6*EU: 060,

M%! ),='2 *EU: 0)).

/"

Moldova

*=5 higher

*)) higher

4abour regulation

4abour relations in Moldova are regulated by the 4abour Code

*effective as of ' &cto"er >660, $ollective !a"our

$onventions *at national, territorial, "ranch and company

level and other special laws *e.g. !aw on wages. !a"our

legislation provides employees with minimum guarantees which

cannot be worsened or limited by an employment contract. Certain

aspects of employer - employee relations are governed by internal

regulations adopted at the company level "y the employer

*e.g. staff handboo7.


78/122

of the trade union into account when adopting internal regulations

*i.e. internal policies or dismissing trade union members.

alaries and &ages

"n employer may not negotiate and establish a basic salary lower

than the national minimum gross salary. This is currently M(4

',)56 *a"out EU: (6 per month for privately;owned

companies.

Trade unions

Traditionally, trade unions were very tough in labour relations

negotiations. They are currently effective in obtaining minimum

wage legislation, as well as other basic rights for employees. They

also conclude annual collective labour agreements at different

branch and company levels.

$nion membership for employees is not compulsory, but unions

still have a high level of influence in large and state;owned

enterprises. )n small private companies they tend to be less active.

#mployers should ensure the necessary conditions for the activityof unions. $nions have no right to participate in the management

of a company and its commercial activity. evertheless, sometimes

the employer should tae the opinion

-he national average monthly salary is M%! 0,=)5 *a"out EU: >66

in >6'0, having increased "y 1.0 from the previous year.

Currency regulations demand that salary payments be made in

local currency *M%!, including those to foreign staff.

9$!loy$ent "ontra"ts

The conclusion of written individual employment contracts with all

employees is compulsory. The contract should contain provisions

concerning the employee position, salary level, woring conditions

and other mandatory issues.

"s a general rule, employment contracts are concluded for an

indefinite period. Fi#ed;term employment contracts may "e

concluded only in specific situations provided for "y the !a"our

Code. #mployment contracts may provide for a trial period of

employment up to si5 months.

2'|Investing Guide Moldova 2014

Woring >ours

The standard woring wee stated in the 4abour Code is 2+ hours,

over five or si# working days a week, "ut generally from

Monday to 'riday.

-he law defines limits and rates for overtime, holiday O

weekend and night wor. &oring hours on weeends or holidays

can be either compensated with free time or paid. &vertime is

generally paid as '56 of the hourly rate for up to a

specified num"er of hours and ++9 beyond that.

;aid >olidays

"nnual paid vacations are established at a minimum of *

calendar days a year. "dditional paid leave can be given to

employees for special occasions such as a marriage, birth of a

child, death of relatives, study, etc. ic and maternity leaves are

paid from the +ocial Insurance /udget.


79/122

Ter$ination o# 9$!loy$ent

"n individual employment contract may be terminated at the initiative

of the employers on the specific grounds stipulated "y the

!a"our $ode *e.g. failure of trial period, staff redundancy,

systematic non-compliance with regulations / re%uirements or absence

of the employee from the woring place, theft, etc7.

-he !a"our $ode gives additional protection to specific

categories of employees, including minors, female employees,

employees with children, union members and various other

categories. -here are specific situations in which

employment cannot "e terminated "y the employer *e.g.

during sick leave or maternity leave7.

+everance payments may appear in specific situations such

as termination of the contract due to li%uidation of the employer,

staff redundancy or when the employees health situation restricts

his performance in the position held, or the employee is

insufficiently 3ualified "ased on a decision of the attestation

commission.

3oreign &orers

'oreign citi;ens who wor in Moldova based on a local labour

contract or those seconded to Moldova have to obtain a wor

permit. +pecific incentives in o"taining the work permits are

provided for the management of large companies with foreign

investments.

In#rastru"ture

201

8olu$e o# goods trans!orted by

u$ber o# trans!orted !assengers by !ubli"

!ubli" trans!ort enter!rises

trans!ort enter!rises .thousands/

.thousand tonnes/


80/122

railway

5,20'.2

railwayK

0,=)1.>

auto

*,1*2.1

bus and micro-bus

''2,)22.1

naval

')>.)

naval

'').2

air

'.0

air

)55.6


81/122

Total transported goods

'0,==(.2

Total transported passengers

'>6,'6'.)

K7anuary 8 4ovem"er >6'0


2+


82/122

"ir Transportation

Ten air carriers operate in Moldova and perform regular flights. -he "iggest air carriers are the pu"lic enterprise ?Air

Moldova3 and the private company 0Moldavian "irlines3. 'oreign airline companies present in Moldova are: "ustrian

Airlines, $arpatair, Air /altic, -urkish Airlines, iDDair, Fly%u"ai, -andem Aero, += Airlines, -arom, Meridiana,

4ufthansa, "tlasjet, "erovit and $tair.

'ommercial air transport

Scheduled flights


83/122

@ear

;assengers

'reight and

Passengers

'reight and mail, tonnes

mail, tonnes

>665

216,=15

',=>)

22=,5(0

',526


84/122

>66)

52),)00

',101

5'',0'5

',)5>

>66=

)1=,>>'

>,>)>

)2=,0)'

>,'0)


85/122

++*

125,(>)

>,2)(

102,612

>,>>5

>66(

16),510

,+1


86/122

=(=,51)

',1)5

+1+

(0),>>)

>,0(1

(>1,=)'

>,065


87/122

+11

',622,=15

>,='6

',60),51=

>,)2)

+1

',>>6,2()

>,=))

',>6(,2(6

>,))>


88/122

>6'0

',0>',0)>

>,1'(

n/a

n/a



89/122

2(|Investing Guide Moldova 2014


90/122

aval transportation

9iurgiulesti International Free Port *9IFP, MoldovaJs only port accessi"le to sea;going vessels, is situated '00.1 km up the

:iver %anu"e in the +outh of Moldova. 9IFP serves as the only direct sea / river-borne transhipment and distribution point to and

from Moldova.


91/122

0

ey lo"ations for

investments

Moldova has designated areas &here do$esti"

and #oreign investors "an "arry out

entre!reneurial a"tivities under !re#erentialter$s and "onditions .i)e) #avourable ta%

"usto$s and other regi$es/)

These designated areas are the 3ree 9"ono$i"

:ones .39:/ and Industrial ;ars .I;/)

"ree Economic (ones

'#B are parts of the Moldovan customs territory, separate from

the economic perspective, in which local and foreign investors

may carry out entrepreneurial activities under a preferential

regime, i.e. "enefiting from special guarantees and

facilities *ta#, customs, regulatory, immigration, etc..

'#B are created for a period of at least + years. Moldova

currently has seven FE, esta"lished "etween '(() and

+11, located all over the countrys regions. There is also an

international free port *+outh and airport *4orth;

#ast7, with status similar to '#B.

FE residents should "e registered in Moldova *legal

entities with local, mi5ed or foreign capital7 and are selected by'#B "dministration, based on the investment amount and type,

infrastructure available / to be created, type of activities to be

carried out, etc.

The following types of activities may be carried out in '#B:

Industrial production of goods for e#port *apart from ethylic

alcohol and alcohol productsN

orting, pacing, labelling and other similar operations for goods

which transit through Moldovan customs territoryN

&ther au#iliary activities necessary for the "asic activities

a"ove *e.g. utility services, warehousing, construction,

catering etc.N

E#ternal commercial activity *i.e. wholesale of goods imported

into '#B outside Moldova and offered for e5port7.

#ach type of activity within '#B is subject to a separate time-

limited authorisation issued by '#B "dministration.

)nvestments within 'ree #conomic Bones in Moldova now total up

to U+% '(=.( million, with U+% >1.5 million "eing invested in

>6'0 *an increase of '2.) from >6'>. As of ' 7anuary

>6'2, '51 residents were registered in the seven Free

#conomic Bones. The number of employees woring in the

FE as at the end of >6'0 amounted to ),1() people, an

increase of 5.( from the num"er in >6'>.


92/122

taci Dusiness

Marculesti "irport

Dalti

$ngheni

#5po Dusiness Chisinau

Tvardita

Taraclia

Eulcanesti

!iurgiulesti Fort


FE ?E#po;/usiness;$hisinau@ operates in Chisinau, for theperiod

'((5 ; >6>5. Area managed as free Done 8 >0.) ha *the land is

used '66. In >6'0 it had 2' registered residents from

12 countries. Total investments since the establishment of the

FE amount to U+% 50.( million.

FE ?/alti@ operates near /alti $ity, in the northern part of

thecountry. It was created in >6'6 for a period of >5 years.

FE ?/alti@ is composed of four areasL su"Done ' *>.6> ha,

su"Done > *'6.05 ha, su"Done 0 *''6 ha and su"Done 2

*'> ha. In >6'0, it had >1 residents, including key investor

0(rae5lmaier "utomotive3 4td and, as of late +1, G!ebauer A

!rillerG, one of the leading providers of cables and wires, with an

investment of around $( * million. Total investments since the

establishment of the '#B amount to


93/122

U+% 0(.0 million.

FE ?Ungheni;/usiness@ is located near the city of $ngheni, in

the central region of Moldova, on the west border with .02 ha divided into the main

territory and four su" Dones. In >6'0, there were 05 residents

registered. Total investments since the establishment of the

FE amount to U+% 55.1 million.

FE ?&taci;/usiness@ was esta"lished in '((1 for a period of

>5 years. FE ?&taci;/usiness@ is located in &taci, &cnita

%istrict. It has two su";Dones, of 0>.'= ha and '.6> ha

respectively. In >6'0, nine companies were registered as

residents of FE ?&taci;/usiness@. -otal investments since

the esta"lishment of the FE amount to U+% 0.2 million.

'#B 0Taraclia3 was esta"lished in '((1 for a period of >5

years. Taraclia '#B is located in the south region of Moldova, in

Taraclia (istrict. The 'ree Bone is located along the railway

$hisinau;/esara"ka;:eni, on the territory of several industrial

enterprises, its total area "eing of 0) ha. In >6'0 there were

1+ residents registered. Total investments since the esta"lishment of

the FE amount to U+% '5 million.

FE ?Halkanes@ was created in '((1 for a period of >5 years.

Itis the only FE located in the 9agauDia region, ) km from

Hulcanesti. FE @Halkanes@ has an area of '>>.0 ha divided

in two sectors *=1 ha and 22.0 ha respectively. In >6'0 there

were 06 residents registered. -otal investments since the

esta"lishment of the FE amount to U+% '5.' million.

'#B 0Tvardita3 is situated on the south of the 66' for a period of 06 years. -he

FE area is 0.5= ha. In >6'0, five residents were registered.

Total investments since the establishment of the '#B amount to

U+% '5.5 million.

Marculesti )nternational 'ree "irport was established in ++*for

a period of >5 years. It operates on the territory of the e5-

military aerodrome of Marculesti. )t has a dual-purpose


94/122

airfield, used for military and civil air transportation,

international passenger and freight transportation, and for the

fulfilment of re3uirements for national defence, security and

international commitments of the


95/122

Industrial parks

An industrial park is a

defined area with

technical and

production infrastructure,

where economic

activities, mainly

industrial production,

provision of services,

employment of scientific

researches and O or

technological

development, may "e

carried out, "enefitting

from specific

incentives. -he law on

industrial pars was

adopted in +1+.

An industrial park may

"e created for 06 years

either on the territory of

state or private

enterprises, through

green field investments

or by means of public

private partnerships. )n

practice, an industrial

par is created by means

of obtaining the title of

industrial par by an

enterprise on the basis of

!overnment decision.

This enterprise becomes

the administrator of theindustrial par, i.e. it can

also act as the resident of

the industrial par.

Any legal entity

registered in Moldova

*legal entities with

local, mi5ed or foreign

capital7 can become an

industrial par resident

on the basis of a contract

concluded with the

administrator-enterprise,

aiming to carry out such

activities as industrial

production, service

provision,

implementation of the

scientific researches

and O or technological

development within the

industrial par.

(uring +1+ - +11 three

enterprises obtained the

title of industrial par on

the basis of !overnment

decisions:

Industrial park?/ioenergagro@ is in

Tarigrad, (rochia(istrict

in the northern part of

Moldova. The area of this

industrial park is '0.2(

ha. It is a private

industrial park. -he title

of industrial par was

offered by the

!overnment to

?/ioenergagro@ !!$,

including the plot of

land in their private

ownership, in order to

implement the first

investment pro


96/122

Industrial Park

?$imilia@ is located in

Cimislia city on a

territory with an area of

2+ ha. )t is currently

under construction."ccording to the project,

the areas of

specialisation of this

Industrial Park will

mainly "e the

following: manufacture

of dairy products, oil

production, manufacture

of starch and starch

products, and meat

production, processing

and preserving.

/ased on the o"5 million is

provided for

investments in the

creation and development

of technical and

production infrastructureof the industrial par.

-here are also other

places, identified on

the "asis of feasi"ility


97/122

studies *all the studies

are availa"le at the

addressL

http://mec.gov.md/studii-

de-fe;abilitate/7, suitable

for the esta"lishment of

industrial parks

*Edinet, Falesti, /alti,

?incesti, Cantemir,

Cainari7.

|Investing Guide Moldova 2014


98/122

"E( and I) incentives overview

&ith the aim of attracting investment, Moldova offers incentives for the residents of '#B and )ndustrial pars.

'#B incentives

;rote"tion o# 39: residents against legal

a"ts &orsening the a!!li"able regi$es

+hould newly;adopted laws *?4ew !aw@ worsen the

conditions of '#B residents activity in respect of customs,

ta5 and other regimes provided for by the previous laws

concerning FE *?&ld !aw@, FE residents may

"enefit from the regimes provided "y the &ld !aw forL

1+ years as of entry into force of the ew 4aw, but not

more than the period of FE operation *general ruleN

The whole period of operation within '#B, but not more

than >6 years of entry into force of the 4ew !aw

*special rule applicable to residents whose investments in

the fi#ed assets of FE;company or in the

development of

'#B infrastructure e5ceed $( ++ million7.

-he &ld !aw will "e applica"le for the mentioned

period to '#B residents activity within the investment

projects registered before the entry into force of the ew

4aw.

!e"ial ta and "usto$s regi$es

'or +12, the following C)T incentives for '#B investors

are applicable:

#ntities established in the '#B and which e5port goods

and services from '#B to outside the customs territory of

the


99/122

'#B from abroad, from '#B outside the customs territory

of the


100/122

Industrial Parks incentives

IP :esidents and IP Administration may "enefit from the following real estate facilities and !overnment support:

Q 'ree of charge change of the category of land with agricultural destinationN

Q #ntitlement to privatise public property land associated with constructions, at the price land esta"lished "y lawN

Q 'ree of charge transfer of public property assets with the purpose of industrial pars establishment upon owners decisionN

Q "pplication, by the administrating enterprise, of thereduction coefficient down to 6.0 of the tariff set for the annual lease payment for

the pu"lic property landN

Q &ptimisation of state inspections.

Labour * education overview

Most of the FE and IP are located near or within the

"iggest cities in Moldova *$hisinau, /alti, Ungheni,

%rochia.

Most of the universities, professional and vocational schools are

located in Chisinau.


101/122

FE ?/alti@ is located near the /alti $ity in the north region

of Moldova. In /alti there are several higher and medium

education institutions, including /alti +tate University,

%niester Institute of Economics and !aw, /alti Polytechnic

College, Medical College, Technical-


102/122

,o"al trans!ortation

Most of the '#B are located at the intersection of national roads and do have access to railways.

"E( +E!po,-usiness 'hisinau.

1 m to )nternational "irport Chisinau

International road $hisinau;&dessa

'56 km to Free International Airport Marculesti

>26 km to 9iurgiulesti InternaRtional Free Port

"E( /-ALI.

International route 8 ' km from E510

European road *Hienna;UDhgorod;$hisinau;

&dessa;:ostovO%on

ational route 8 location at the crossroads of the

international road M2 */alti;Floresti;+oroca

and the ring road with direct access to the

national road /alti;$hisinau and theinternational road M'2 */alti;Edinet;$ernauti


103/122

$ahul ; 05 km

!ocated close to the international route M0

9iurgiulesti;

Chisinau


104/122

6


105/122


106/122

"E( /3ngheni,-usiness.

"E( /araclia.

Q "ccess to the


107/122

Q Marculesti International Free Airport is located at '65 km

Q '56 km from $hisinau

Q The distance to the national road is 1 m.

Q =5 km from 9iurgiulesti International Free Port

Q 05 km from the "order with Ukraine

Q 55 km from the "order with :omania.

"E( /vardita.

#5isting infrastructure:

Q 4ational highway *$hiinBu;$imilia;/asara"easca;$eadSr;

lunga7

Q International Airport at a distance of '>5 km *$hiinBu

'|Investing Guide Moldova 2014


108/122

Success

stories

,a#arge

A world leader in "uilding

materials, !afarge employs)2,666 people in )> countries

and posted sales of EU: '5.>

"illion in >6'0. As a top;

ranking player in the $ement,

Aggregates and

Concrete sectors, it contributes

to the construction of cities

around the world, providing

through its innovative solutionshousing which is more

compact, more durable, more

beautiful and better connected.

&ith the worlds leading

building materials research

facility, 4afarge places

innovation at the heart of its

priorities in order to contribute

to more sustainable

construction and to better serve

architectural creativity.

4afarge has been operating in

Moldova since the ac%uisition

of the :eDina cement plant

in '((( and to date has

invested almost EU: 56

million in modernising the

plant.

)n +1+, the company launched

a new product line aligned with

#uropean %uality standards to

replace the previous product

range. The new product line

was innovative for the

Moldavian market, designed

to "enefit final customers "y

maing their choice and wor

easier.

4afarge is the maret leader in

cement in Moldova. The

company brings to the maret

differentiated and innovative

cements *$EMP!A+-,

$EMF&:-,

$EMF&:-ET-:A and

hydraulic binders for road

infrastructure projects7, with a

wide range of solutions andservices for its customers in

the construction industry.

)n +11, the company e5tended

its presence in the country by

opening of a new operation in

Chisinau to better understand

the needs of its partner

concrete producers. 4afarge

opened a new railway

terminal in $omrat in >6'0

to "ring cement inbags

closer to its customers in the

south of the country.


109/122

4afarge currently operates

from three locations: 2=people.

)n recognition of its

commitment to its customers,

the company won the top pri;e

of 0The !olden Mercury3 for

brand promotion in the

national 0Trademar of the

year3 competition in >6'6,

?-he 9olden Mercury@ in

>6'' *new product line and

?-he 9old Medal@ in >6'>*$oncrete -est $entre. In

>6'0 and >6'2, !afarge

$ement Moldova won the

top pri;e of 0The !olden

Mercury3 for its social

responsibility projects.

#r4!lmaier

5roup

Automotive

The main resident in sub;ones

1 and of the free economic

Done ?/alti@ is the foreign

capital company

?%rae#lmaier

"utomotive3 4td., which

produces electric coa5ial

cables for ma,(66employees and annual

sales e#ceeding M%! 205

million. -he company plans

to e#pand, with an e#pected

'5,666 s3. meters increase

inproduction and warehouse

spaces, investments of $( 1*

million and employing an

additional ,+++ people.


110/122

-he company has

investments of U+% '>.5

million in the :epu"lic of

Moldova, with around (6

employees and annual

sales e#ceeding M%! 266

million. ithin the FE

?/alti@, the company

manufactures insulated

electrical cables for theautomotive industry. As a

%rae#lmaier supplier, a"out

56 of 99 production is

used within the FE ?/alti@,

with the other 56 "eing

e#ported.

,ear Cor!oration

&ne of the most dynamic residents of the free economic Done

?Ungheni;/usiness@ is the foreign capital company ?!ear

Corporation3 4td., the original capital for which came from the

etherlands. This resident is part of the 4ear organiDation

founded in %etroit, U+A, in '('=. ith its head3uarters in

+outhfield, Michigan, !ear maintains >6= locations in 05

countries around the glo"e and employs appro#imately

'66,666 people. &ver 56 of the corporations plants are

located in the $ and Canada. The companyJs key customers

include Ford, &pel, 7aguar, Holvo, MaDda, Fiat,

Holkswagen, Peugeot and 9eneral Motors. $ar seats,

electronic e%uipment and interior elements mae up over *+9 of

its product range.

04ear Corporation3 4td. has been producing e%uipment for motor

vehicles in the free economic ;one of 0$ngheni-

/usiness@ since '> 7anuary >6'6. -he company currently

has over ',)60 employees, with invested capital of over

U+% 1.2 million. The company maes products from te5tiles,

vinyl and leather, with net annual sales reaching M%! =>>.1

million in late >6'0.


111/122

(|Investing Guide Moldova 2014

$owcan we

hel!?

he Ministry of Economy

The Ministry of #conomy is

the !overnments central

public administration body.

The basic functions and

objectives of the Ministry of

#conomy are to direct and

promote state economic

policies, to ensure economic

reform implementation and to

raise the populations living

standards.

The Ministrys mission is to

ensure national economic

growth by optimising the

regulation framewor for

entrepreneurial activity,

creating prere%uisites for

business environment

development, developing

technologies, ensuring

competitiveness, creating an

attractive investment

environment, contributing to

de-monopolisation of thedomestic maret and removing

anti-competitive practices, and

promoting international

economic cooperation.

The Ministry has the following

responsibilities with regard to

investment and e5port

promotion policies:

participate in the development

and promotion of state

investment policies

*including attraction of direct

foreign investment7, free

economic ;ones and e5port

promotion of domestic

productionN


112/122

improve legal framewor in

order to stimulate investment

activityN

ensure the harmonisation of

national legislation with #$rules on investmentN

participate in policies

promoting venture capital

investments in companies with

high degrees of innovationN

help the creation of a

favourable investment climate

for foreign and local investors,

and improve tools for

attracting domestic and foreigninvestment and e5port

promotionN

monitor and analyse the

process of free economic ;ones

establishment and

development, implementation

of strategic investmentpro


113/122

40

Moldovan Investment and

E!port )romotion

0rganisation 6MIE)07 8

&our Reliable )artner

-he Moldovan Investmentand E#port Promotion

&rganisation *MIEP& is a

pu"lic non;profit institution

coordinated "y the Ministry

of Economy of the :epu"lic

of Moldova. MIEP& can "e

considered as a reliable partner

for all potential investors and

importers of Moldovanproducts.

MIEP& was created under

9overnment %ecision no.

'65 on > Fe"ruary '(((

and its services are

provided free of charge. Its

main objectives are:

E#port PromotionN


114/122

'oreign (irect )nvestment

"ttraction.

In order to realise theseo"/ Meetings,

Matchmaking, -raining for local

"usinesses,participation of local

companies at international trade

fairs.

Moldovan investment climate

promotion.

(evelopment of promotional

materials.

Identification of constraints

faced "y investors O

e#porters in setting up their

business in Moldova, by means

of %uestioning companies, with

further development and

submission of relevant

proposals to the !overnment

in order to overcome the

problems.

Coordinates feasibility studies

for investment projects to beimplemented in the


115/122

and foreign importers of

Moldovan products e5amine,

establish and develop business

opportunities in the


116/122

Legal Services

-he !egal team of Pw$

Moldova is a mem"er of an

international network of

Pw$ !egal firms which

includes more than >,666

"usiness lawyers in over =5

countries. Pw$ !egal in

Moldova has "een included

in the top positions in the

rankings of !egal566 and)'4


117/122

accounting standards *U+ or

U 9AAP.

)'


118/122

ey "onta"ts

Ministry of Economy )ricewaterhouse'oopers Moldova

o# the e!ubli" o# Moldova 0= Maria $i"otari +treet

' Piata Marii Adunari 4ationale, Chisinau, >0 1' >>

-el O Fa#L *V 0=0 >> >5 6' 6= O >0 26 )2 Fa#LV *0=0 >> >0 1' >6

e-mail: mineconcomHmec.gov.md

www.mec.gov.md #avid row

Partner 8 $ountry !eader

Investment policies and e!port(avid.TrowHro.pwc.com

promotion division

-el.L *V 0=0 >> >5 6) 5) O >5 6) )1 Ionut Simion

Partner, -a# and !egal +ervices

Moldovan Investment )onut.imionHro.pwc.com


119/122

and E!port )romotion

0rganisation 6MIE)07 8iorelia Gutu

)5 A. Mateevici +treet "ssurance ervices

Chisinau, > >= 0) 52

Fa#L *V0=0 >> >> 20 '6 Aleandru Munteanu

E;mailL officeWmiepo.md Ta5 and 4egal ervices

www.miepo.md "le5andru.MunteanuHro.pwc.com

Aleandru Goun

"dvisory ervices

"le5andru.!o;unHro.pwc.com


120/122

www9pwc9com:md


121/122


122/122

The Investing Guide 3as prepared '* $3C Moldova in #ooperation 3ith the Ministr* and E#onom* and the Moldovan Investment and E(port $romotion :rganisation+

=either $3C Moldova nor the #o9authors a##ept an* responsi'ilit* %or losses arising %rom an* a#tion ta7en or not ta7en '* an*one using this pu'li#ation+ It should not 'e

regarded as a basis for ascertaining tax liability in specific circumstances. Professional advice should always be sought before acting on any information contained

in this 'oo7let+

> 2014 IC& $ri#e3aterhouseCoopers dvisor* &).+ ll rights reserved+

investing guide 2014

Documents