Do I Need a Local Entity to Hire in Moldova?

In Moldova, a "local entity" typically refers to a recognized business presence, such as a subsidiary or branch office, that allows you to act as an employer. This setup is essential for managing payroll and fulfilling local employment obligations, ensuring compliance with Moldovan labor laws.

Without a local entity, foreign companies generally cannot register as employers, manage mandatory social security processes, or run compliant payroll. An alternative is to use an Employer of Record (EOR), which can handle these responsibilities on your behalf.

What is Required to Employ Someone in Moldova?

• Local employing entity required to directly employ? Yes (unless using an EOR)
• Payroll registration required? Yes (mandatory for employer obligations)
• Withholding/tax remittance required? Yes (employers must withhold income tax)
• Social contributions required? Yes (employer must contribute to social funds)
• Local employment agreement required? Yes (written contracts are mandatory)
• Mandatory benefits to budget? Yes (includes paid leave and social security)
• Works council/collective agreements considerations? Often (certain sectors may have collective agreements)

Best Options If You're Hiring in Moldova

Can I Hire Contractors Instead of Setting Up an Entity?

Yes, but you should be cautious about the nature of the relationship.

Hiring contractors in Moldova can be a viable option, but it’s crucial to ensure that the contractor is genuinely independent. Misclassification can lead to legal challenges if the contractor is deemed to be functioning as an employee. Here are some key points to consider:

• Ensure the contractor has multiple clients.
• Avoid controlling their work hours or methods.
• Keep the role project-based rather than ongoing.

How Long Does Entity Setup Take And What Does It Cost?

Typical entity setup timeline: It often takes 6–12 weeks to establish an entity in Moldova, depending on the type of business and required registrations.

Ongoing cost categories (entity route):

• Accounting, bookkeeping, and statutory filings: Estimated 4,000–10,000 MDL per month ($230–$570)
• Payroll provider: Estimated 500–1,500 MDL per employee per month ($30–$90)
• Employer registrations and recurring compliance: Estimated 1,000–3,000 MDL per year ($60–$180)
• Corporate tax filings and annual reporting: Estimated 5,000–15,000 MDL per year ($290–$870)

EOR cost components (no-entity route):

• A per-employee EOR service fee (from $399 p/month with Playroll)
• Pass-through statutory costs (e.g., employer social security contributions, approximately 23% of gross salary)
• Any optional benefits you choose to provide beyond statutory minimums

How an Employer of Record Can Help You Hire in Moldova

Hiring in Moldova can be complex, but it doesn’t have to require setting up a local entity or taking on long-term overhead. With an Employer of Record like Playroll, you get a simple, predictable way to hire compliantly while keeping costs transparent and under control. We help you:

• Hire employees in Moldova quickly without establishing a local entity, eliminating incorporation costs, ongoing administration, and exit complexity.
• Stay fully compliant with local payroll, tax, and employment regulations with Playroll’s managed payroll services.
• Control your total employment costs, with a clear monthly EOR service fee (from $399 per employee).
• Focus on growing your business, while we manage contracts, payroll, compliance, and labor law obligations end to end.
• Scale up or exit the market easily, without the financial or legal burden of closing a local entity.