Setting up a business in Bulgaria is an opportunity to gain access to three markets at once: the EU, Turkey, and Russia. Bulgaria is extremely loyal to foreign investment and provides companies with everything they need for comfortable operation and economic prosperity.
Bulgaria stands apart from all the countries of Eastern Europe – a small state that provides all the advantages of the European market, but without economic difficulties and restrictions for business. Bulgaria is today one of the most loyal tax regimes in the EU.
The advantages of the Bulgarian state are eloquently confirmed by statistics: enterprises from Romania, Greece, Italy, and other regions with a high tax burden are striving to migrate to Bulgaria. Domestic business can also take advantage of this.
OOD (similar to a limited liability company) is the most popular organizational and legal form of doing business in sunny Bulgaria. This organization can be created in two versions: it all depends on the number of founders. If the company is founded by a single person, the form will be EOOD. In all other cases, it is a standard OOD.
In addition to limited liability companies, a non-resident can also register a joint stock company (AD). However, this organizational and legal form is not as common as OOD due to the minimum threshold of the authorized capital and special requirements for shareholders. AD can be registered only if the statutory fund is over 50 thous. Lev.
You will need to prepare the following documents to open a business in Bulgaria:
The following specifics of company registration in Bulgaria must be borne in mind:
The requirements for the organization name deserve special attention. It must be noted that the main name must be executed in Cyrillic, with the inclusion of the legal form. Of course, there is also a requirement for uniqueness – the name of the organization should not repeat that of an already registered designation.
Each Bulgarian company has a legal address. If you need to obtain it, then it is recommended to contact Cortax for help – we will promptly help you find the best legal address.
The Bulgarian legislation sets special requirements for bank accounts. Since 2021, an account with a credit institution can be opened only with the personal presence of the director. As an alternative, the manager must have the status of a resident of Bulgaria.
In addition to these specifics, each company registered in the country must have a charter. This main document should contain all important information about the organization, its members, and the specifics of its activities.
The applicant does not receive any certificates after the registration. Actual State, which is valid for 3 months, is the only proof of the successful completion of the procedure. In any case, up-to-date information on the registration of a particular organization can be obtained from the Commercial Register.
As noted above, Bulgaria has one of the most loyal taxation systems in Europe. The specific types of tax liabilities for businesses are as follows:
There is also an income tax for individuals, the rate is 10%. It must be noted that the minimum wage in the country is 650 Lev for 2021.
As such, Bulgaria provides an appropriate tax regime for business, which does not put pressure on the company performance. This advantage is not the only one. Due to the connection with the EU, businesses have a lot of opportunities to sell their products to the world market. Cortax is able to facilitate the company registration in Bulgaria by its professional support, competent translation of documents, finding a legal address, and other important issues.
