This document discusses starting and operating an IT business in Moldova. It notes that Moldova's laws are evolving to align with EU directives and favor fair competition and online public services. Some key laws related to e-commerce, digital signatures, electronic communications, and payment services were mentioned. The document also discusses Moldova's national strategy to promote the digital economy and IT sector competitiveness. It addresses common questions from IT clients around setting up a company, employment regulations, data protection rules, tax incentives for IT businesses, and intellectual property. Overall, the document presents Moldova as working to develop a favorable legal environment for IT startups and businesses.

1. Headquarter in Moldova?!
Law Hacks regarding Startups in Evolving
Legal Environment
REGIONAL DIGITAL COMMUNICATION SUMMIT
6 February 2016
Andrei Caciurenco, LLM, Partner

2. To start with…
The end of law is not to abolish or restrain,
but to preserve and enlarge freedom. For in
all the states of created beings capable of law,
where there is no law, there is no freedom.
John Locke

3. Our approach:
• Why to do IT business in Moldova?
• Top 5 questions of our IT clients

4. Pro factors:
• Towards EU and EU laws
• Good laws in Moldova
• Sound state policy

5. EU Association:
• EU Directives transposed
• Facilitating access to electronic
communications market
• Favouring fair competition and
investments in IT
• Developing public services on-line

6. Boring list of laws:
– Law on electronic communications (2007)
– Law on digital signature and electronic document
(2014)
– Law on e-commerce (2004)
– Law on payment services and electronic money
(2012)
– Law on prevention and fighting information crimes
(2009)

7. Government policy:
• Favouring doing business in general
• Favouring IT sector specifically

8. General effort:
• Starting a business
• Paying taxes
• Labor market
• State controls
• Access to finance
• Restructuring / liquidation / insolvency
• Dispute resolution

9. Specific effort:
• National Strategy «Digital Moldova 2020»
• IT Competitiveness Increase Strategy (2015)
• Institutional framework
• Industrial Parks in IT

10. FAQ by IT clients:
• How to set up a company?
• What are the specific issues the IT employer
should be aware of?
• Why should IT companies care of data
protection rules?
• Are there any tax incentives for IT business?
• Copyright… Any problems with that?

11. Setting up a company:
• Incorporation
• Post-registration procedures
• Licenses
• Authorizations

12. Employer, beware:
• Employment regulations do exist (comply!)
• Fixed terms employment contracts (two sides
of a stick)
• Confidentiality clause (2 yrs now)
• Resigning – less time to think back (7 days)
• Overtime paid
• Commercial secret

13. Must know about data protection:
• If you process Personal data you have to register as
controller of personal data at the State Agency of Personal
Data Protection
• Know what data your organization is collecting and
understand that certain privacy obligations may apply
• Be transparent about your data collection, use, and sharing
activities and be accountable
• Train your employees on privacy and security issues
• Assess your vendors and make sure your contracts
include data protection provisions
• Appoint a privacy officer

14. Tax incentives:
• Currently, IT companies engaged in activities related to analysis,
design and programming of informational systems as well as
developing of software, shall benefit of the following tax incentives:
– The monthly 23% SIC due by the employer for each employee is
limited to MDL 2,323
– No PIT is applied to the employee monthly taxable income that
exceeds MDL 10,100, i.e. only that part of monthly taxable income
that does not exceed MDL 10,100 is taxed with PIT at the general rates
of 7% (up to annual taxable income of MDL 29,640) and 18%
(exceeding MDL 29,640);
• SIC of 6% and 8% MIC due by the employee - general rules
• Corporate income tax – 12%

15. Intellectual property:
• Moral rights vest in the author (employee)
• Author cannot stop the employee from making
use of IP
• Authors name indicated where it is effectively
possible
• Authors remuneration – set in contract
• Economic rights vest in the employer, but do it
right

16. “Dura lex, sed lex"
Tough Romans’ saying

17. Thank you for being patient
IPTEH Building
65 Stefan cel Mare Blvd., of. 806
Chisinau, Republic of Moldova
Phone: +373 22 27 93 23
Fax: +373 22 27 93 37
E-mail: andrei.caciurenco@aci.md