Understand the Jurisdictions Setup Requirement Before Proceed Your Register Company in Bulgaria
Located in the Southeastern part of Europe, Bulgaria is a country locked between the Black Sea and the Danube River. Bulgaria’s strategic location has given Bulgaria a geostrategic significance as it is crossed by the interstate and intercontinental transport links. In addition to this, Bulgaria is gaining its traction as one of the best investment hotspots in Europe with strong capital growth rates via the extensive EU investment in infrastructure and tourism.
Why setup business in Bulgaria?
1. Strategic location:
The location of Bulgaria has its geostrategic significance – it is a strategic hub for doing business in Europe. Apart from its strategic location that borders Black Sea to the east, Romania to the north, Serbia and Macedonia as well as Greece and Turkey, Bulgaria is another important crossing point where it is currently crossed by road routes of five out of ten Pan-European Corridors – no 4, 7/water, 8, 9 and 10 five Pan-European corridors.
2. Business opportunities
Spanning over 110,994 square kilometres, Bulgaria is the home to a population of over 7 million people and it is the 14th largest country among European countries. The most important economy fields in Bulgaria are agriculture, power engineering, and heavy industry. Bulgaria is a member of European Union, NATO, and Council of Europe in which the close ties are tantamount to political and business stability as well as access to nearby huge markets. Its commercial ties with the EU accounts for approximately 60% of Bulgaria’s exports.
3. Low Business Costs:
Low business costs are no doubt one of the key factors that appeal to global investors. Bulgaria’s tax regime is among the most attractive in EU – it has one of the lowest corporate income taxes in Europe as well as low personal income tax. Below is the simple list of Bulgarian attractive tax regime:
- Corporate income tax rate: 10% (the lowest in EU)
- Personal income tax: 10 % (flat rate)
- Capital gain tax: 0%
- Withholding dividend tax: 5%
Business Types in Bulgaria
1. Limited liability company
- A form of business entities that is suitable for Small and Medium companies (SMEs).
- It is formed by members with the liability limited to their contribution to the company’s capital.
- No minimal share capital at incorporation needed.
2. Sole traders
- An entrepreneur can register a Bulgarian sole proprietorship.
- He or she is completely liable for the debts of the company and can benefit fully from the profits.
- No minimum share capital required./li>
Please note that in the case of liquidation, the owner is fully liable and his or her personal assets may be affected.
- Can be formed by two or more members with unlimited liabilities under the same name as well as the business purpose.
- Similar to sole proprietorship, the members’ personal assets can be affected by the liquidation processes.
Company Registration Process in Bulgaria
Company registration process in Bulgaria is simple and straightforward – the entire process takes only a few days to complete. In Bulgaria, companies will need to register with the Commercial Register with a certain amount of registration fees.
1. Before registration process
- The company’s representative has to execute the minutes of the constituent meeting of the shareholders or the general meeting of the general partners.
- Obtain the notary certified copy of:
- statement of consent,
- the signature specimen of the manager and
- copy of the articles of incorporation or the copy of partnership agreement.
- must have the certificate from bank notifying that a minimum of 70% of the minimum required capital has been paid.
2. Company registration process
The actual registration process comprises the steps include:
- Depositing the notarized foundation deeds, minutes of the meeting of incorporation and the bank certificate to the Commercial Register. The process takes around four days to complete.
- Filing an application to the National Revenue Agency together with the foundation deed, bank account document, an excerpt from the Commercial Register to get the VAT number. The process takes around 12 days to complete.
The growth of Bulgarian economy is underpinned by its strong export performance, enterprise profitability, robust business climate and consumer confidence. If you are looking forward to expanding your business in Southeastern part of Europe, Bulgaria has lots to offer.