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Subscribe to this list via RSS Blog posts tagged in Bureaucracy

Hiring someone in Moldova is so hilariously convoluted and difficult that we have actually had to hire a professional HR manager as an employee of our company simply in order to file the paperwork to employee the company's founders (technically we also have an accountant and 1 employee but this would literally be just as hard hiring only ourselves). This woman has been working on site now for 2+ weeks and we are still not through the daily stacks of paperwork. Keep in mind we are 6 people (including the HR manager who is now also tasked with figuring out how to hire herself). This is all the subject of a future post I'll be writing but as a primer, I wanted to introduce you all to the world of Moldovan employment bureaucracy in the context of getting a job in the food service industry. 

While our team's collective western food service expertise is encompassed in Matt's 2 weeks at Taco Bell in high school, I have enough friends who have waited tables to know a few things. Namely, it's a hard job, but it's not necessarily a hard job to get. You walk into a restaurant, ask about openings, apply, and get in dependent on whether or not they see you as a fit. 

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no experience? that's fine! no, no we don't want to hear about any "record" - just sign on the line!


I'm not trying to oversimplify things but basically if you get the job you show up to work, they train you and you start. Hopefully by the end of the cycle payroll has you entered in and you get your check. Done and done. This is not the process in Moldova. If you want a job in food service (waiter, bartender, cook, whatever) in Moldova you need to know that...

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Tagged in: Bureaucracy Cafe
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Posted by on in Stories From The Field
You have two cows...

We've all heard the classic economics analogy jokes about cows my favorites are these:

Communism: You have two cows. You give them to the government, and the government then gives you some milk.

Fascism: You have two cows. You give them to the government, and the government then sells you some milk.

Capitalism: You have two cows. You sell one and buy a bull.

Nazism: You have two cows. The government takes both and shoots you.

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Posted by on in Stories From The Field
Accounting Part 1

This last week I started to write my first serious post dedicated to corruption in Moldova. While I've touched on the subject a bit in my short post about The DMV or the epic saga that was our visa approval process but nothing dedicated to corruption. As you might have noticed from the title of this post this is not such a post. I realized that even starting that conversation was so daunting without certain background elements explained that it was totally unmanageable in scope. I'll try again soon but in the meantime I decided it was time to share a glimpse into accounting in Moldova - by far the most batshit insane and corrupt part of doing business here bar none.

Let me preface this article by saying that it is just a first effort to scratch the surface of this madness. By no means do I have even a rudimentary grasp on the workings of the accounting and fiscal systems in Moldova and attempts I've made to understand them have come up very short. As a team we've decided that someone needs to start taking night classes on accounting here just to get some idea of what's going on (and we have a full time accountant hired now). So with that said here's a bit about what I do know right now. Pardon me if I made bad assumptions as to intentions or root causes behind these things. After dealing with this for a day it is easy to assume that the system was entirely crafted by unhinged lunatics on a bender and to forget that there are real people trying to address real problems in the government here. That said, as you will see, they are failing spectacularly. 

 

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like this but with more stamps

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Posted by on in Stories From The Field
On Menus...

Picture above from Listen 2 Uncle Jay and apparently taken in Tatarstan Russia. Good to know that "business launch" is not just a Moldova phenomenon :)

 

If you live in Moldova or have ever traveled here one question sticks out above the rest in terms of how constantly it is encountered and how frustrated it is bound to make any westerner.

 

Why does every restaurant have a 50 page menu with hundreds and hundreds

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Tagged in: Bureaucracy Cafe
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Posted by on in Stories From The Field
Visa Denial and Appeal

Read Me First: I wrote this originally while this process was ongoing so I imagine a fair amount of frustration and anger comes through. I've edited the post to reflect the fact that we did eventually get our visas but I have tried to keep the tone the same. This was an incredibly terrible process and I have no desire to sugar coat it just because we got through it. I've had to put a little distance between the events and my posting to even look it over because the whole thing is mostly a mess of bad memories for me. So, without further ado please enjoy...

 

Well folks you're in for a doozy with this one. I apologize in advance. If you're the kind of person who doesn't want to see things about Moldova that make you sad, depressed or enraged I recommend stopping now. 

That picture you see there is my whiteboard's countdown. It was a countdown from the moment my visa got rejected to the day I needed to get myself out of this fine country I've called home for over 2 years. It reflects the fact that for almost a month our living room became a war room dedicated not to our business but to fighting a corrupt and confused visa process just in order to stay in the country. At the end of this process our appeal was accepted and we managed to get visas. Before it did though that whiteboard counter hit zero and went negative. Read on to follow the tale... 

 

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Tagged in: Bureaucracy Visa
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Posted by on in Stories From The Field
On Stamps

So here's a topic that will look very familiar to anyone who's lived in the post-Soviet space but seem totally nuts to everyone else. Stamps - what are they for? Well in Moldova the answer is "literally everything." I first came in contact with this when I went to Kazakhstan as an English teacher and my packing list included "stamps for grading papers." My first thought was "I thought I was going to be teaching high school - why do I need smiley face stamps?!" The reasoning is because no matter how silly looking the stamp they make things "look official."

To understand this you need a little background on how things become "official" here vs. in the states. In America your signature is your bond. Furthermore your word can be your bond in contract law if it is deemed a verbal contract. I am not a lawyer but the gist is that in the US agreements can range from silly-informal to super formal. In Moldova they are always super formal. In theory this is to "control" the process ("control" being a translation from Russian for something like "oversight on steroids") and to prevent fraud and forgery. In practice this is a system of red tape unrivaled by even the darkest fears of government fearing anarchists. It is literally like buying shotguns to kill flies. 

 

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not only is this a real product but you too can be killing flies
with a shotgun for the low price of $39.95. I fucking love America.

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Tagged in: Bureaucracy Stamps
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Of LLCs and SRLs Part #2 - Banking and Conclusions

This is Part 2 of the process of introduing a US based LLC as a parent company of a Moldovan SRL. Find Part 1 here.

 

Note: this post is mostly a wordy, if humorous, take on banking and wire transfers in Moldova. If you would like to jump to the recommendations section for Parts 1 & 2 of this post do so here

 

**Update Nov 15: we just finalized all of the papers so this process is over. Once we got through the lower level people to the department director things got much easier. This is in spite of the fact that they royally messed up our paperwork. The director fixed it all himself and was not only professional but extremely pleasant to work with. It's always a wonder when you find someone in the government who really wants to help and make your day easier. Today, at the end of this mess, I have a lot of respect for the State Registration Chamber. Also we discovered that we can in fact have multiple "Administrators" of the company. Post coming soon...

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Tagged in: Banking Bureaucracy LLC SRL
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Posted by on in Stories From The Field
Of LLCs and SRLs Part #1

Note 1: This post is an update to our first post about organizing a company in Moldova. While that post was pretty general and explained our initial reasoning this one will attempt to explain the results of that reasoning over the last few months and a few preliminary recommendations for other entrepreneurs (ok, this got long. Conclusions Recommendations will be in Part 2 [COMING SOON]). We will be writing a further update on this topic later on with more solid recommendations. (small update below)

Note 2: This post is covering quite a lot of experience had over a long period of time. The topic is dense and often technical. Please comment if things are unclear and I will add more information. Also, as usual, please feel free to tell us how stupid we are. Everyone can learn from that. 

 

Jump to... (note to use these section links open up the full version of the post by clicking the title or on "Continue Reading" below)

Section 1
Basic Organization 

Section 2
Selling Shares vs Adding a Founder: 
Section 3
The Necessary Documents for Adding a Founder
Section 4
Notarizations, Apostilles, Translations and DHL 

 

 

So Begins a Tale of SRLs and LLCs...

 

 

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The path to success is almost self evident!

 

 

Section 1: Basic Organization


 

I'll begin where the last post ended which was with a discussion of the process that we decided to embark upon. That was to organize the companies basically as follows:

 

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I'll let you all guess which silhouette represents which manager...

  

So to describe what you're seeing there we founded a Moldovan SRL called "Smoke House SLR" (they refused to believe it was one word and we didn't fight it). Additionally we founded an American LLC called "The Moldova Company LLC" in Virginia. The purpose of the LLC, as described briefly in the previous post, is to escape from some of the more challenging bureaucratic differences between a Moldovan SRL and an American LLC. These all...

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