ABOUT MOLDOVA

Amongst all the countries in Europe, Moldova, officially the Republic of Moldova, is a landlocked country located in Eastern Europe, nestled between Romania and Ukraine. It is known for its picturesque vineyards, rich winemaking traditions, diverse cultural heritage, and fertile agricultural land. Moldova is actively pursuing closer ties with the European Union, having gained EU candidate status in 2022. The capital of Moldova is Chișinău, which is its largest and most populous city, serving as the country’s primary economic, cultural, and administrative hub. According to the World Bank, Moldova is classified as a Lower Middle-Income Economy. Despite challenges, it has implemented significant reforms to improve its business environment and attract foreign investment. The currency of Moldova is the Moldovan Leu (MDL). As of today’s exchange rates (June 2025), 1 Indian Rupee is approximately 0.21 Moldovan Leu (or 1 MDL is approximately 4.76 INR). The population of Moldova is estimated to be around 2.5 million in 2024. Its neighbouring countries are Romania to the west and Ukraine to the north, east, and south. The official language of the country is Moldovan (which is virtually identical to Romanian), with Russian also widely spoken, and English gaining popularity, especially among the younger generation. The majority of the Moldovan population practices Eastern Orthodox Christianity, with smaller communities of other Christian denominations and other faiths. Currently, Moldova has one major international airport, Chișinău International Airport (KIV), which is the primary gateway for international flights. As a landlocked country, Moldova utilizes its river port Giurgiulești on the Danube and relies heavily on the Black Sea ports of neighbouring countries (primarily Romania and Ukraine) for its international maritime trade, with goods transported mostly by road and rail.

The corporate income tax rate in Moldova is a flat 12%. However, similar to some other Eastern European countries, a 0% corporate income tax rate is applied to retained and reinvested profits for micro, small, and medium-sized enterprises (MSMEs) under certain conditions, encouraging business growth and development. Moldova offers several incentives to attract foreign direct investment, notably through its Free Economic Zones (FEZs) and the Moldova IT Park. FEZs provide various benefits, including exemptions from corporate income tax, VAT, customs duties, and excise taxes for qualifying activities. The Moldova IT Park offers a special unified tax rate of 7% on sales revenue for resident IT companies, along with exemptions from certain other taxes. Opesh Group of companies will be helping you in completing the Due Diligence process which includes financial planning, registration process, business options, and if required, even helping you find a rental property for your office.

Establishing a business in Moldova has become increasingly streamlined, with continuous reforms aimed at simplifying administrative procedures and aligning with European standards. The Invest Moldova Agency is the primary government body promoting and assisting foreign investors. A foreign investor who is planning to start his business in Moldova can form various company types, with the most common being a Limited Liability Company (SRL – Societate cu Răspundere Limitată) or a Joint Stock Company (SA – Societate pe Acțiuni). A Limited Liability Company (SRL) is the most popular choice due to its flexibility, allowing 100% foreign ownership and requiring a minimum share capital of just 1 MDL (symbolic). Moldova’s legal framework is evolving to provide a more stable and predictable environment for investors.

In case an investor is planning to establish an SRL in Moldova or a corporate business setup, Opesh Group will be helping you in taking the right decision for setting up your business in Moldova and we will also guide you about how to follow the procedure while formulating your company in Moldova.

Types of Business which can be started in Moldova:

• Agriculture & Food Processing: Moldova’s economy is heavily reliant on agriculture. Opportunities are vast in modernizing farming practices, organic agriculture, and especially in value-added food processing (e.g., wine, fruits, vegetables, juices, canned goods) for both domestic consumption and export.
• Information Technology (IT) & Business Process Outsourcing (BPO): With a growing pool of skilled IT professionals, competitive labor costs, and the attractive Moldova IT Park regime, opportunities are significant in software development, IT outsourcing, web development, and BPO services.
• Light Manufacturing: Opportunities exist in labor-intensive light manufacturing, particularly in textiles, apparel, footwear, and automotive components (wire harnesses, car seats), leveraging competitive production costs and free trade agreements with EU and CIS countries.
• Renewable Energy: Moldova is highly dependent on energy imports. Opportunities are growing in developing renewable energy sources like solar, wind, and biomass, driven by government incentives and a push for energy independence.
• Tourism & Hospitality: Moldova offers a unique, authentic European experience with its wine routes, monasteries, and rural landscapes. Opportunities exist in developing boutique hotels, eco-tourism, wine tourism (cellar tours, degustations), and agrotourism.
• Infrastructure & Construction: Ongoing needs for modernizing infrastructure (roads, energy grids, water systems) and urban development create demand for construction, engineering, and material supply firms, often supported by international financial institutions.
• Pharmaceuticals & Healthcare: Opportunities in the import and distribution of pharmaceutical products, and potentially in specialized healthcare services as the sector develops.

Advantages of Starting Business in Moldova:

• EU Candidate Status: Provides a clear reform agenda and pathway to EU integration, signaling long-term stability and alignment with EU standards.
• Strategic Location: Positioned between the EU and CIS markets, offering potential for trade and logistics connections.
• Competitive Labor Costs: One of the lowest labor costs in Europe.
• Attractive Tax Regimes: A flat 12% corporate income tax, with a 0% rate on reinvested profits for MSMEs, and special benefits in Free Economic Zones and IT Park.
• Free Trade Agreements: Access to preferential trade regimes with the EU (DCFTA), CIS, and other countries.
• Young & Skilled Workforce: A relatively young and educated population, particularly in IT and engineering.
• Emerging Market Potential: Opportunities to enter relatively untapped markets with significant growth potential.

Business Opportunities for Indians in Moldova:

There are excellent business opportunities in Moldova for new investors who are planning to start their business abroad. Moldova’s growing economy, EU integration aspirations, and competitive cost structure present unique avenues. Indian investors with strengths in IT services (especially outsourcing), pharmaceuticals (manufacturing and distribution), agro-processing (e.g., wine, fruit processing), and potentially in specialized manufacturing or renewable energy projects, can find avenues for investment, technology partnerships, and market entry into both European and regional markets.

Imports & Exports:

Many goods are imported and exported from Moldova. Imports and exports business is an ever-growing business in any country; however, you need to do proper R&D before investing in that product which you can import or export. You need to check whether that product is suitable for your target market and how much revenue you will be able to generate from that market.

Major items which are exported from Moldova (limited direct exports to India):

• Beverages (especially wine and spirits)
• Vegetable products (e.g., cereals, oilseeds, fruits, nuts)
• Textiles and apparel
• Machinery and equipment
• Plastics and rubber
• Electrical machinery

Major items which are imported in Moldova (limited direct imports from India):

• Pharmaceutical products
• Organic chemicals
• Textile yarns and fabrics, articles of apparel
• Machinery and mechanical appliances
• Cereals (e.g., rice)
• Vehicles and parts
• Medical instruments

Manufacturing:

Opportunities in manufacturing are primarily in light industries such as textiles, apparel, and footwear, often for export to the EU. There is also potential in automotive components (e.g., wire harnesses), electrical equipment, and food processing, leveraging competitive labor costs and Free Economic Zone benefits.

Mining:

The mining sector in Moldova is very limited, primarily involving the extraction of construction materials like limestone, sand, and gravel. There are no significant deposits of metallic minerals or fossil fuels (beyond small natural gas reserves). Large-scale conventional mining is not a feature of the Moldovan economy.

Major Indian companies which are currently working in Moldova:

Due to Moldova’s smaller economy and developing market, large-scale manufacturing or direct investment by prominent Indian conglomerates is not yet widespread. Any Indian business presence would likely be through:

• Pharmaceutical Distribution: Indian pharmaceutical products are distributed in the Moldovan market through local partners.

• IT Services: Some smaller Indian IT firms or individual professionals might be providing services or engaging in partnerships, particularly in the IT Park.

• Trade: Indian companies are active in bilateral trade, primarily exporting pharmaceuticals and textiles to Moldova and importing some agricultural products.

• Education Sector: Growing presence of Indian students in Moldovan medical universities has led to related service providers.

• GDP = $16.7 billion (2024 est.)

• GDP Growth = 3.5% (2024 est.), 4.5% (2025 est.)

• Ease of doing business rank = Not directly ranked by the World Bank’s ‘Doing Business’ report (discontinued), but actively working on improving its business climate and digital services.

• GDP per Capita = $6,700 (2024 est.)

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