The Moldovan government has approved a draft law, provisionally called "LLC reform", designed to make it easier to do business in our country.
It is planned that eventually more freedom will be provided for the founders, partners and employees of limited liability companies. As Deputy Prime Minister, Minister of Economic Development and Digitalization Dumitru Alaiba said during a Cabinet meeting on Wednesday, this is one of the most long-awaited reforms that will help make it easier to do business and facilitate the launch of new start-ups. According to him, the "LLC reform" is one of the cornerstones for this, since anyone who wants to do business in Moldova should do it with maximum ease. “Through the “LLC reform”, we are completely changing the paradigm of legislation, moving from the restrictive approach “it is possible only if it is permitted by law” to a new philosophy that says “everything is possible, unless it is prohibited by law,” Dumitru Alaiba said, noting that "LLC reform" will bring tangible changes to the relationship between associations/founders of commercial companies. Through this reform, associations (associated persons) will have more rights, thereby increasing their participation and involvement in the management of commercial companies. Another important benefit of the reform will be the simplification of procedures that will be completed faster and more efficiently, freeing up time and resources to focus on growth. “The LLC reform will provide more freedom for growth and development, while at the same time there will be few prohibitions at the legislative level. Anyone who wants to create and develop a business in Moldova will be able to do it with maximum ease and without unnecessary barriers,” the Deputy Prime Minister said. According to him, the draft amendments approved by the government to some normative acts concerning the regulation of relations between associations/founders of commercial companies) creates a new legal framework on the basis of which limited liability companies will operate in Moldova. The document regulates relations between participants/founders of commercial companies, provides new opportunities in the decision-making process, more rights for associations, as well as simplification of many procedures. According to the bill, the rights of associations will not depend on their investments. Associates will have the opportunity to establish other rules for the granting of voting rights, dividends and shares of assets by the articles of association. The same principle will apply to the distribution of profits among the founders, so entrepreneurs will have more freedom to build their own business. A corporate agreement is also being introduced to guarantee more trust between the founders and partners, as well as encourage new investment. At the same time, investors will have the right to request an extract from the State Register of the company, and associations will be able to access additional information and documents. The maximum threshold of 50 associates will be removed. The charter will become the only obligatory constituent act, and the State Register will be the main source of official information. The authorized capital of an LLC can be formed from consumer goods and intellectual property rights, and the company's financial debts can be considered a creditor's contribution to the authorized capital. Association meetings can be organized online and without convening procedures, and documents can be stored in electronic format, which will facilitate the opening of businesses by citizens from the diaspora. Partners will be able to be represented by an administrator, which can also be a legal entity. Decisions at meetings will be made by a smaller number of votes: 2/3, not 3/4. // 12.07.2023 — InfoMarket.
