Starting a company in Bulgaria is one of the best ideas you can have as a business person. The cost of operating a company in Bulgaria is one of the lowest in the world. Forming a company does not require complex procedures and it takes 2 to 5 days to be formed. You will have a competitive advantage of trading in the European Union which gives you room to excel in business. There is no double taxation in Bulgaria and you will take advantage of a 10% flat-rate tax system for all corporates.
You will also maximize the low cost of production such as labor cost and employee compensation. Another outstanding thing is the low minimum share capital of 2 BGN or 2 Euro. The manager of a business in Bulgaria is not required to have a work permit as compared to other countries which insist a work permit is vital.
Company Formation Service in Bulgaria
Company formation in Bulgaria requires several steps and actions to be implemented before the actual formation. The first step is for you to identify the form of business if it is a sole proprietorship, limited liability company, joint-stock company, or foreign branch limited company.
The Bulgarian Limited Liability Company with the name OOD is the most common in Bulgaria. Other forms of business include joint-stock limited company and foreign limited company. If you are a foreigner you may also form a sole proprietorship, partnership, or joint-stock company. In Bulgaria, foreigners are not separated from the residents but all are treated equally and they follow the same procedure when incorporating their businesses.
You need to have a signed memorandum of association, articles of association, and minutes of previous meetings signed by directors need to be executed in front of a notary including a minimum share capital. The notarized documents are submitted to the commercial registry at the registry agency for approval and take within 2 to 3 days.
After registering documents you will be given a unique code which distinguishes your business from other business and you will register for VAT validation in the EU which ensures that you don’t pay double taxation. You may also need a lawyer’s advice which helps you with doing business in Bulgaria including large businesses. For professional business services for registering a company in Bulgaria, check this website:
Formation of Limited Liability Company in Bulgaria
This is the easiest form of business in Bulgaria with OOD as the last name. It is common in small and medium-sized businesses and does not require a minimum share capital. There are minimal documents required including Articles of Association signed by shareholders and Memorandum of Association. It is managed by a director appointed in the general meeting.
Formation of a Joint Stock Company
This is the form of business that has large businesses and is managed by a group of qualified professionals and must be incorporated by two or more people. When forming a joint-stock company as a business the name should be uniquely followed by the term AD.
You must contribute a minimum of 25,000 EUROS for closed joint-stock companies and a minimum of 50,000 Euros for open stock companies. By-laws govern this form of business including name and address, location, details of directors, mode of sharing profits, and dividends or liquidating the company.
Formation of Sole Traders in Bulgaria
You can also form sole proprietorship in Bulgaria where the business and the owner do not have a separate legal entity. In case of liquidation, the owner’s assets can be sold to cover for the debts of the company. There is no minimum share capital in this form of business.
Formation of Partnership in Bulgaria
A partnership is formed between two or more individuals who come together and contribute capital. They have no limited liability and their items will be sold in case of any debt. You should have SD as the last name of this partnership form of business and is governed by partnership articles that state name, address, and amount contributed by each partner.
Formation of a branch in Bulgaria
Foreign investors can establish a branch in Bulgaria by following all rules and regulations which govern the agency registry and you must appoint an agent or attorney to represent you in the registration process and you must present the documents of the parent company including certificate of incorporation, bank statements, and certificate of good standing and decision of opening a branch.
Formation of a company in Bulgaria is much easier because it is not subject to complex formalities, there is fast company registration in Bulgaria, appealing tax structure at a 10% flat rate, and skilled workforce including low employment costs in Bulgaria.