Proposals to Modernize the Legislative Framework for Entrepreneurship

December 30, 2024 – The Economic Council to the Prime Minister hosted a meeting of Working Group 3 “Stimulating and Maintaining Private Investments,” led by the Executive Director of the Association of Foreign Investors in Moldova, Ana Groza.

During the meeting, the Ministry of Economic Development and Digitalization (MEDD) presented a draft law on entrepreneurship, developed with the support of the USAID Institutional and Structural Reforms Program in Moldova. This legislative initiative aims to create a modern legal framework that establishes the general principles for conducting entrepreneurial activities in the Republic of Moldova, replacing the current Law No. 845/1992, which is considered obsolete. The current law, adopted over 30 years ago, has been frequently amended through ad-hoc interventions, resulting in contradictions and a lack of a clear structure, MEDD representatives noted.

Additionally, many provisions have become outdated, and others conflict with other regulations, such as the modernized Civil Code or the Law on State Registration of Legal Entities. The Ministry proposes developing a new law that will establish fundamental principles of entrepreneurial activity; clarify basic concepts such as “entrepreneur” and “economic activity”; eliminate bureaucratic barriers and simplify administrative procedures; promote transparency, integrity, and fair competition; support innovation, digitalization, and internationalization of businesses; and encourage education and the development of entrepreneurial skills.

The new law will define more clearly the forms of conducting entrepreneurial activities, including limited liability companies, joint-stock companies, cooperatives, state and municipal enterprises. In addition, activities carried out by peasant farms, individual entrepreneurs, and independent professionals will be recognized. By adopting this law, the authorities aim to create a more friendly and efficient business environment; facilitate access to finance and support business development; increase transparency in the interaction between entrepreneurs and public authorities; and stimulate innovation and sustainability in the national economy.

During the event, the business community had the opportunity to provide initial feedback. MEDD noted that it will continue to ensure public dialogue on the legislative framework in the field of entrepreneurship, which will contribute to improving the legislative draft, including on the platform of the Economic Council to the Prime Minister.

The Secretariat of the Economic Council to the Prime Minister is supported by the European Bank for Reconstruction and Development, funded by the UK Government’s Good Governance Fund.