Open a Foundation in Moldova

Both locals and foreigners can open a foundation in Moldova. A foundation refers to a type of non-profit organization (NPO) that is incorporated to fulfill a purpose which benefits the general society or a specific group within the society. This structure is not incorporated for commercial purposes, as it can be the case of those who opt to open a company in Moldova, which is specifically designed for profit purposes.

If you want toregister a foundation or any other type of NPO, our consultants specialized in company formation in Moldova remain at your service. We provide tailored assistance and legal representation during the incorporation procedures, as well as in other corporate matters that arise after the entity becomes operational.

What is a foundation?

A foundation has as basic characteristic the fact that it is set up for non-profit purposes which are stipulated in its incorporation documents. Besides this trait, the foundation must have its own patrimony, different than the one of the founders. Those who will open a foundation in Moldova must also appoint its governing body, which is represented by the board.

Incorporation requirements

In order to set up a foundation in Moldova, the following conditions must be met:

• it can be set up by at least 1 founder, who can be a natural person or a legal entity (Moldovan nationals and foreigners alike);
• it is necessary to subscribe a minimum share capital, which is established at 2 average monthly gross salaries;
• the legislation regulating this entity is Law no. 86/2020 on non-commercial organizations (which replaced Law no. 581/1999 on foundations);
• interested parties can open a foundation in Moldova in approximately 15 calendar days, according to the Agency for Public Services.

Please mind that while the process of company registration in Moldova implies the payment of various processing fees (they vary in accordance with the type of company incorporated), for the registration of a foundation, the state authorities do not charge any registration fees.

What is the statutory document of a foundation?

When setting up a company in Moldova, investors need to draw up the articles of association as the primary statutory documents, but for a foundation, different bylaws are required. According to the law regulating the activity of this structure, the foundation can be set up through a Decision to Establish (in cases where there is just1 founder) or theFoundation Charter (for 2 or more founders).

The statute does not have to be notarized (notarization is required only when it is approved by a testamentary executor); our consultants specialized in company incorporation in Moldova can address a local public notary on behalf of our clients (we can offer this service through the power of attorney). The charter must provide information on the following:

1. the identification information of the founders (identity card information for individuals and for corporate founders, the registration certificate data, along with details on the registered address and corporate bank account information);
2. the name of the foundation;
3. the purpose for which it is set up;
4. the potential categories of beneficiaries;
5. the initial assets the foundation disposes of;
6. the manner in which the foundation’s assets will be distributed in case in which the entity is liquidated;
7. the signature(s) of the founder(s).

Please mind that it is also possible to open a foundation in Moldova based on a will, in which case the participation of the appointed legal representative is necessary in the incorporation process. It must also be noted that the heirs mentioned in the will have inheritance rights over the newly founded structure.

We invite you to contact our specialists in company formation in Moldova for further information on the requirements imposed when setting up a foundation. Our team can also present the tax system applicable in case (partially different than the one available for commercial entities).