The Principality of Moldova was founded in 1359. The political center was located in the valley of Moldova River. The origin of the river’s name is not clear. One theory is that Prince Dragos named the river after his dog Molda. Molda is reported to have drowned in it after an exhausted hunt. The eastern part of Moldova became a part of the Russian Empire, under the name of Bessarabia, in the year 1812. Bessarabia joined Romania in 1917-1918, after the Russian Empire was dissolved. In 1940, the Soviet Union occupied Bessarabia. Later, it was split between the Ukrainian SSR and the newly-created Moldavian SSR. Part of Romania during the interwar period, Moldova was incorporated into the Soviet Union at the close of World War II. The country has been independent from the USSR since 1991.
Moldova is a state in Eastern Europe.The country is landlocked, even though it is very close to the Black Sea. Moldova is bordered by Romania on the west and Ukraine on the north, east and south. Moldova has a population of 4,206,000 and has an area of 33,800 square kilometers (13,050 square miles). Moldova is divided into thirty-two districts, five municipalities and two autonomous regions. Moldova has 65 cities and 917 communes.
The official currency is the Moldovan Leu. The Moldovan Leu was adopted on 29 November 1993, following the collapse of the Soviet Union and the creation of the independent republic of Moldova.
Moldovan/Romanian is the official language of Moldova. Russian is also widely spoken in the country, both as a first and second language. Ukrainian and Gagauz are recognized minority languages.
Chisinau is the capital and the largest city of Moldova. Located in the middle of the country, on the river Bîc, and is the main industrial and commercial center of the country. Chisinau is the most economically prosperous locality in Moldova, and its largest transportation hub. It has a population of 664,700.
The Republic of Moldova got its independence from the Soviet Union On August 27, 1991. After becoming independent the government of this sovereign state of the Republic of Moldova works under a framework of a democratic republic.
In a parliamentary representative governmental system of Moldova the Prime Minister plays the leading role of the Moldova government. In Moldova government the Prime Minister of Moldova is also the head of the multi party system. In Moldova all the executive powers are only practiced by the government, on the other hand the legislative powers are enjoyed by both the government as well as the parliament. In the governmental system of Moldova judiciary branch is the independent branch, and all of its powers can not be divided between the legislature and the executive branch of government.
The Republic of Moldova includes a unicameral legislature, The Parliament of Moldova was previously known as the Supreme Soviet. Now the Parliament of Moldova elects the president of Moldova for a four year term. The president of Moldova is the head of the state and he shares executive power with the Council of Ministers. Council of Ministers or the cabinet directs the activities of the government and the prime minister and the first deputy prime minister are the heads of the cabinet.
Laws Governing Business
The tax legislation in Moldova provides for a wide range of benefits provided to business,
including a VAT refund on tangible assets and services, related to long-term investments; exemption from VAT and customs duties on assets in case of their inclusion in the company’s authorized capital; the opportunity to avoid double taxation in accordance with international agreements, signed with 39 states etc.
The Public-Private Partnership mechanism allows providing services to the society, partially or fully using tools and new technologies of private companies with transfer of the construction, operation and financing risk to the private sector (Law on public-private partnership No. 179-XVI of July 10, 2008).
The adoption of the new Law on Industrial Parks (No. 182 of July 15, 2010) created entirely new conditions for attracting investments in the development of the industrial sector of economy. Thus, within one year after adoption of this law on the initiative and with the support of the Ministry of Economy of the Republic of Moldova 13 feasibility studies were developed on the creation and development of industrial parks, based on various types of proper ty in different regions of the country.
When creating and developing the activity of industrial parks, investors are provided with the state support both in the process of obtaining authorizations to operate (the principle of “single window”), and in the process of park functioning: granting of special benefits for use and redemption of assets, optimization of government inspections of the residents’ activity, as well as support of investment projects of national significance. In addition, three research and technology parks and an innovation incubator are established in the republic, where development works in the field of energy and electronics take place, as well as projects in the areas of intensive agriculture and creation of ecological products and other projects are being conducted.