Bulgaria is a country in South-eastern Europe and is a member of the EU (European Union) since the year 2007. After joining hands with the EU, Bulgarian Economy and GDP is continually growing and providing a lot of business opportunities to the investors. The Bulgarian government policy, a cheap yet skilled workforce, and taxes аmоng thе lоwеѕt іn thе ЕU make іt оnе оf thе mоѕt favoured investment locations for the foreign investors in the region.
Setting up a new business in Bulgaria comes with a lot of advantages such as extremely low tax rates (10% corporate tax) and additional tax reduction for the foreign investors who choose to set up a company in Bulgaria regions that are less developed and with the high unemployment rate. The country has a simplified company registration process with affordable setup fees that also attracts investors from abroad to set up their businesses in Bulgaria to take benefits of the EU business environment. You can also keep the 100% ownership of your company as a foreign investor without any restrictions.
So, if you are looking for a new company formation in Bulgaria, you need to follow a tailored registration process. Before registering your business in Bulgaria, you should also be aware of these requirements:
- A business address in Bulgaria is must for your company
- Your company needs to deposit initial company capital in a local bank
- You must choose a business form and scope of activity for your company before going through the registration process
Also, you need to choose your legal business form to set up a company in Bulgaria. You can choose from the following forms of companies in Bulgaria;
- Private Limited Company (ODD)
- Public Limited Liability Company (AD)
- Limited partnership company (KD)
- General partnership Company (SD)
- Sole Owner or Sole Proprietorship (ET)
- Single person Limited Liability Company (EOOD)
- Branch Office in Bulgaria
Once you are done with the above requirements, you are ready to start the company registration procedure. To register your company in the Bulgarian Commercial register, you need to follow the following 5-step process:
- Choose the name of your company: You need to pick your company name as per the certain name parameters for the businesses in the country. This is an essential process before the company registration to determine the identity and legal structure of your company in Bulgaria.
- Register a bank account: For your company’s equity and legal registration within the country, you need to register a Bank account in some local Bulgarian bank.
- Register your business address: Local business address registration is the next step while setting up your company in the country for legal operations of your company.
- Register your company in the Government Official Register: Once you have completed the above steps, it’s time to register your new business publically in the Bulgarian Official Commercial register for legal identity in the country for business operations.
- Stamp Registration: Once you have registered your company officially with Bulgarian Commercial register, your company will need an official stamp to endorse your formal activities and business operations in the country. Stamp registration is the post-company registration process but an obligatory function to set up a company in Bulgaria.
The business registration process to set up a company in Bulgaria is the same for both local and foreign investors under Bulgarian corporation laws. The registration process is easy but can be very challenging for someone who doesn’t know about the company’s incorporation laws and rules & regulations in the country. CompyCo can help you set up your company remotely in 3 weeks or with a visit in one week where we need you in Sofia 1 day and you’ll fly home with your net banking.
You should always consider hiring professional business consultants and company registration experts to take you through your company formation process. With the help of all the legal knowledge, inputs, and expertise, it usually takes up to 2 weeks to register a new company in Bulgaria.