The Development of Limited Liability Companies in the Republic of Moldova

Abstract

In this article, we will analyze the most widespread form of business in the Republic of Moldova – Limited Liability Company. In this scientific approach, we will make an analysis of the evolution of this form of business highlighting its characteristics and advantages. We will mainly refer to the legislation that concerns companies, recently amended. The Government approved the draft law on modification of some normative acts aimed at regulating the relations between associations/founders of companies. It provides for innovations in the legal framework, new possibilities in decision-making, more rights for associates, and simplification of several procedures. Entrepreneurs, especially those associated with Limited Companies (LLC), will gain more freedom for business growth and development and will have fewer bans at the law level. The actuality of the theme is an obvious one, the Limited Liability Company is the most widespread form of organization of entrepreneurial activity in the Republic of Moldova, a fact confirmed by the statistical data. Unlike joint-stock companies, which are the largest commercial organizations with large capital, limited liability companies are part of organizations with medium-sized capital. Limited liability companies are favorable for small businesses. Moreover, the practice proves that many such forms of company are constituted by spouses within a family. Purpose and research tasks. The purpose of the research is to carry out a multi-aspectual research of the limited liability company, as the most common form of business in the Republic of Moldova. To achieve the proposed purpose, we have drawn up the following tasks: a) to analyze the limited liability company in the light of national legislation; b) the comparative analysis of this form of business; c) identification of the advantages and disadvantages of the limited liability company. Methods and materials applied. In the process of elaboration of this article, the following research methods were used: analysis, synthesis, historical, comparison method, etc. The Law on Entrepreneurship and Enterprises was used as scientific materials, nr. 845/1992; Civil Code of the Republic of Moldova nr.1107/2002; Limited Liability Company Act nr.135-XVI/2007, as well as valuable doctrinal sources in the domain. Obtained results and debates consist of the theoretical and practical approach to all factors and circumstances relevant to the research topic. JEL: K2, K22