Moldovan PM announces simplified procedures for entrepreneurs, reform of inspections; about 80 permits might be eliminated or simplified

The government is preparing measures to reduce bureaucracy and simplify procedures for the business community. Prime Minister Vasile Tofan has said that the first proposals on deregulation and changing the way the state conducts inspections in the private sector were presented.

According to the prime minister, approximately 100 legislative acts are being analyzed. Around 80 permits are being examined for elimination or simplification. At the same time, another 172 permitting procedures have been identified, that are not included in the nomenclature established by law.

“At the first government meeting, I asked the Economic Development and Digitalization Ministry (MDED) for concrete proposals in two directions: reducing unnecessary bureaucracy and changing the way the state conducts inspections in the private sector. Today, we are presenting the first proposals, which will be turned into draft laws and government decisions. In the two packages, we are analyzing approximately 100 legislative acts. Around 80 permits are being examined for elimination or simplification. Another 172 permitting procedures have been identified, while they are not even included in the Nomenclature established by law,” the prime minister said.

One of the situations being analyzed concerns agricultural investments outside built-up areas. At present, to build a cold storage facility, a warehouse or a storage facility, an entrepreneur may have to go through at least 26 administrative stages, with the process potentially taking between seven and 12 months.

“For an agricultural investment outside built-up areas—a cold storage facility, a warehouse or a storage facility—an entrepreneur may currently have to go through at least 26 administrative stages. The process can take 7, 10 or even 12 months. We are proposing a simpler procedure,” Vasile Tofan said.

The government also intends to eliminate certain procedures considered unnecessary. The prime minister gave the example of food producers and restaurants that already hold a sanitary-veterinary authorization, but may be required to get a new one simply because they have extended their lease agreement.

“If the activity has not changed, the premises are the same and the conditions are the same, there is no point in repeating the same authorization process,” the prime minister said.

Another proposal concerns staffing tables. At present, employers are required to formally approve them, while authorities believe that, for many companies, this procedure is merely an administrative formality.

“For many companies, it is simply an internal document with no practical use. We propose that companies use them only if they need them,” Tofan said.

The reform also targets the way inspections of businesses are conducted. According to the prime minister, 19 inspection bodies, 36 authorities with powers to establish administrative offenses and five investigative bodies can currently intervene in economic activity. In the case of tax inspections, only approximately 4 per cent are planned.

Vasile Tofan says that unannounced inspections should be carried out when there is a real risk, indications of fraud or a danger to people and should not become routine practice for companies that comply with the law.

“An unannounced inspection must exist when there is a real risk, indications of fraud or danger to people. But it should not be the rule for a company that operates correctly and has a good track record,” the prime minister said.

According to Tofan, the authorities will continue to review the rules and permits, eliminate duplication and digitalize procedures wherever possible.

The prime minister said that requirements meant to protect health, safety, the environment and consumers would stay in place.

“Requirements that protect health, safety, the environment and consumers will remain. But procedures that no longer serve a purpose must disappear,” Vasile Tofan concluded.





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The deregulation packages are in the final stage of expert review. Subsequently, measures requiring government decisions will be submitted to the government for approval, while legislative amendments will be approved by the cabinet and forwarded to the parliament. During this process, some solutions may be adjusted or eliminated.