When thinking of setting up a business, Bulgaria may not be the first place that comes to mind. However, its strategic location and size of the country have made it an upcoming business hub that is catered for a variety of populations. Also, it borders Greece, Romania, and Turkey, countries that are not foreign to the global building market economy.
All investor, whether local or foreigner, setting up a business in Bulgaria, are subject to the same steps as well as regulations as far as the business registration is concerned. As a foreign investor, you have to obtain a visa and make the residency application if you’re planning to stay in the country for a longer period to run the business unless you are EU resident.
In order to facilitate the incorporation of the business and to provide one-stop-shop, which allows quick incorporation, the company formation procedure has been simplified in the country. Now, you get several benefits of doing business in Bulgaria, such as:
- Solid micro and macro politics
- Young educated populations that speak English
- Fast internet connection
- Cheap for incorporating a business
- Cheap rent
- Relatively cheap labor
- Low service costs
- 10% income tax
- Great professionals in the IT-sphere
If you are planning to set up a company in Bulgaria, you want the incorporation process to go smoother and hassle-free. And for that, you need to hire the services of professional offering international business advisory and corporate services.
There are many ways of doing business in this country; however, the most common is the limited liability company. Let’s look at the types of entities that can be registered in Bulgaria.
- Limited Liability Company
In Bulgaria, you can incorporate a limited liability company with:
- A single shareholder (The single-member nature of the company)
- A single director
The other advantage of Bulgaria business setup is the minimum capital needed for LLC incorporation is €1.
Limited Liability Company is a good choice for foreign investors who want to start a business in Bulgaria. It is a good option for both manufacturing and trading activities.
- Limited Partnership
In Bulgaria, the limited partnership can be formed by two partners (minimum requirement) with different powers and liability over the company’s debt. At least one partner must be fully liable; on the other hand, other limited partners will only be liable to the extent of their unpaid contribution to the partnership.
The Limited Partnership is an ideal choice if you already have a partner in Bulgaria or if you are planning to offer professional services, such as legal service or accounting.
- Sole Proprietorship
In Bulgaria, both resident foreigners and Bulgarian nationals can register a sole proprietorship. This entity is registered in the Bulgarian Trade Registrar but doesn’t confer limited liability to the sole trader. It also doesn’t need capital for its registration.
A sole proprietorship is an ideal option for self-employed locals and foreigners already residing in Bulgaria to set up a business.
- Joint-stock company
Joint Stock Company is more suited to the investor who wants to incorporate a business as a large one.
- General partnership
In the general partnership, all the partners involved, share the full liability.
Now, if you need assistance to set up a company in Bulgaria, make sure to contact the experts who provide international business advisory and corporate services.