The Parliament of Moldova adopted in the first reading a draft law, conditionally called "LLC reform", which should make it easier to do business.
In particular, the deputies approved the draft amendments to some normative acts regulating relations between associations/founders of commercial companies. It is planned that due to the implementation of the amendments in practice, entrepreneurs, especially those associated with limited liability companies (LLCs), will receive more freedom to grow and develop their business and there will be fewer prohibitions at the level of the law for them. The amendments offer decision-making alternatives for associates, the possibility of using modern corporate governance systems, specify the rights of associates and facilitate the procedures for exercising these rights, simplify and streamline procedures. Among the specific proposals, Deputy Prime Minister, Minister of Economic Development and Digitalization Dumitru Alaiba noted the elimination of the limitation of 50 employees for LLCs, based on international best practices. It is also proposed to unite in one constituent act the memorandum of association and the charter of the company, which largely intersect. The amendment will simplify the task for both economic agents and state institutions. With regard to the authorized capital of companies, it is proposed to remove the current restrictions so that the authorized capital of an LLC can be created or increased at the expense of consumer goods and intellectual property rights, and the company's financial debts can be considered a creditor's contribution to the authorized capital. At the same time, meetings can be held 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. In addition, 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. The Ministry of Economic Development and Digitalization expects that after the introduction of these amendments, in practice, the number of resident and non-resident investors will increase and the volume of investments in various areas will increase, trade will increase, the number of operating enterprises will increase, new jobs will be created, the confidence of investors, financial institutions and external partners in the investment climate in Moldova will increase. The amendments are yet to be approved in the second reading. According to Dumitru Alaiba, the “LLC reform” will help facilitate the conduct of business and will facilitate the launch of new start-ups. “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. According to him, thanks to this reform, associations (associated persons) will receive more rights, thereby expanding 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. //14.07.2023 – InfoMarket.
