Business Registration in Moldova – Faster and Easier!

Alina Ghimp, Division Head at the Registration Chamber, hands a registration certificate to an entrepreneur, explaining the simplified registration procedure. October 15, 2009. Entrepreneurs in Moldova now have fewer steps to register a new business, with the transfer of some functions from the National Bureau of Statistics to the State Registration Chamber.  This is a success of the USAID Business Regulatory and Tax Administration Reform (BIZTAR) Project, which is helping the Government of Moldova move towards a “one stop shop” registration process to facilitate the creation of new businesses. It is easier now for entrepreneurs who are starting a business in Moldova to register with the required government agencies.  In particular, it is no longer necessary to obtain a statistical code from the National Bureau of Statistics (NBS).  To register a new business in Moldova, the entrepreneur has to visit several institutions including the State Registration Chamber, State Tax Service, National Medical Insurance Company, National Social Insurance House and until June 2009, the NBS.  Business registration expends time and money that both entrepreneurs and governmental agencies can use more productively, provides opportunities for bribe seeking, and discourages formalization of businesses. With the assistance of USAID’s BIZTAR Project, implemented by DAI/Nathan Group, the Moldovan Government has begun streamlining the registration process by eliminating the need to visit the NBS.  Moldovan entrepreneurs starting a business can get their statistical codes directly from the Registration Chamber together with their registration certificate – a cross-town visit to the NBS is no longer required.  In addition, information on statistical reporting requirements which previously could only be obtained at an NBS office, now is provided at the Registration Chamber.  As a result of this streamlining, an entrepreneur saves on average three hours of a busy workday, which can translate into a new business saving more than a half a million Moldovan Lei or about $50,000 in the first year of operation. The World Bank’s 2008 Doing Business report noted that entrepreneurs had to navigate 9 procedures to start a business in Moldova – including registration at NBS.  Now with only 8 procedures, Moldova’s Doing Business ranking has improved from 90th to 77th in the world.  And this is one step forward towards the BIZTAR’s objective of creating a one stop business registration process in Moldova. Alexandru Gorincioi, an entrepreneur from Ungheni, a city in the center of Moldova, recently registered his business.  “It took me one day to visit the NBS in Chisinau to register my business.  Besides the fact that I had to travel to Chisinau, I lost one hour at the NBS waiting for the clerk to register my business and give me the statistical codes”, reports Mr.  Gorincioi of his experience.  He was very impressed by the news that this requirement has now been eliminated.  “Every step taken toward easing the way of doing business in Moldova is a success for each businessman”, he concluded.

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