Register company in Bulgaria

How to open a company in Bulgaria: What a businessman needs to know

Bulgaria is an EU country with an attractive tax system. This country is not offshore and is distinguished by minimal corporate tax in the EU and the absence of double taxation with many states.

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What kind of company can be registered in Bulgaria: Conditions for opening a company

Before starting a business in Bulgaria, a businessman should know the basic information about this procedure and the requirements for opening a firm:

  • Available forms of companies. You can open new company in Bulgaria in two popular forms: Limited Liability Company and Sole Proprietorship.
  • Share capital. Firms do not issue shares. Instead, participants are issued "Certificates of Participation," in which their defined share in the company is indicated. Payment of the share capital is mandatory, and its minimum amount is 2 Bulgarian levs (about 1 euro).
  • Director. At least one and a natural person only. Residency does not matter, but to open a bank account in Bulgaria, the director must be Bulgarian.
  • Shareholders. At least one individual or legal entity. No residency requirements.
  • Legislation. Bulgarian company registration is governed by the Bulgarian Commercial Act of 01.06.1991.
  • State fee. It is 60 Bulgarian levs, payable annually.
  • Bank account. Can be opened both in Bulgaria and in other countries.

Having decided to open a company in Bulgaria, remember that the state sets one obligatory requirement. Companies must hold at least one meeting of the founders per year.

What is the cost of starting a business in Bulgaria: Documents and fees

If you are interested in Bulgaria company registration, the price of this procedure will depend on many factors, so the cost is determined individually.

Among other things, scanned copies of documents are required to register a company in Bulgaria, including notarized ones, which also affects the pricing.

The following documents are needed:

  • Copies of domestic and foreign passports, as well as proof of address for the shareholder, director, and beneficiary.
  • A detailed description of the firm's activities, indicating the source of funds received, which the beneficiary uses to run the business.
  • Three variants of the name of the future firm.
  • A bank statement for the shareholder, director, and beneficiary.

If the shareholder is a legal entity, additional documents are required:

  • Copies of all corporate documents.
  • Incumbency certificate, which is not older than 3 months at the moment of company registration.
  • Proof of address of shareholders and directors, copies of their passports.

Opening a business in Bulgaria: Cost of services

Besides the preparation of the documents and their copies, you may need certain services that will help to ensure proper functioning of the Bulgarian company.

In the first year of a company with direct ownership and management, you will need the following services:

  • Payment of incorporation fees and dues.
  • Lease of a legal address for 12 months.
  • Preparation of a standard package of documents.
  • Creation of a company seal.
  • Opening of a bank account in a Bulgarian bank.

The services of a local company agent will also be required.

Subsequently, businessmen may need services for the preparation and submission of financial statements, the cost of which depends directly on the number of accounts and transactions in them.

Additional services may be required for Bulgaria company registration. They are not mandatory but also affect the cost of the registration procedure:

  • A package of apostilled company documents.
  • Phone and fax number.
  • Postal services.
  • Extracts from Bulgaria register of companies with apostille.

How fast can you open a company in Bulgaria?

It takes about 3-4 weeks to register a company in Bulgaria. The process will start as soon as all the documents required for this procedure are submitted. Among other things, the speed of courier services, through which the businessman will send copies of documents to Bulgaria, affects the term of opening a company.

If you have decided to register company in Bulgaria from other countries, please contact our specialists. We offer comprehensive and quality company registration services in Bulgaria at affordable prices.

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Bulgaria company registration: The advantages of opening a business in Bulgaria

Starting a business in Bulgaria is beneficial for businessmen:

  • Corporate tax rate is 10%.
  • The tax rate for the source of payment is 5%.
  • International Financial Reporting Standards (IFRS) can be applied instead of local standards.
  • Bulgaria is a member of the Hague Convention, so company documents can be apostilled.
  • Relatively low cost of the procedure of opening a company.
  • Opening a company and an account within the same state.
  • Bulgaria is a member of the European Union, so the companies of this country have all the privileges available to the EU member countries.

Opening a business in Bulgaria: Specifics of company operations

Before starting a business in Bulgaria, businessmen should familiarize themselves with all the subtleties of running a business in this country. The positive sides of Bulgarian enterprises:

  • Strong reputation due to the absence of an offshore image.
  • Low-income tax rate.
  • The state is not mentioned in the List of Organizational and Legal Forms of Non-Residents Not Paying Corporate Taxes.
  • Bulgarian banks set low rates for the maintenance of corporate accounts.

Despite the advantages, Bulgaria company registration includes several subtleties:

  • The firm must keep accounting, monthly financial and tax reports.
  • Medium and large companies must be audited.
  • Due to the low prevalence of the language of documentation and communication, an official translation of the primary accounting documents is required.
  • Tax may be levied when profits are transferred abroad.
  • The register of members and directors of the firm is available.

Company registration in Bulgaria and essential information about taxes

The taxation system in this country is based on the common rules of the European Union and the loyal attitude of the local tax authorities. If you decide to register company in Bulgaria, remember that there are two rates of VAT in the state:

  • 20% value-added tax, which applies to all major categories of income sources.
  • If the company is engaged in international cargo transportation or deliveries related to international transport, the VAT rate will be 0%.

If you decide to start business in Bulgaria, the tax on dividend payments will be 5%, but the rate can also be reduced to 0%. It is possible if payments are made to a parent company registered in the EU.

If services and consumer goods are purchased for the company and used during the operation of the company, the tax will also be refunded. These can be personal computers, laptops, production machines, utilities, and so on.

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