Company registration in Bulgaria
Bulgarian economy has been getting a major facelift ever since the country joined the EU in 2007. The continually growing GDP, a cheap yet skilled workforce even by European standards, and unique investment opportunities connected to the modernization of this former communist country make Bulgaria an interesting investment location.
The government is well aware of the potential of mutually profitable foreign investments and has taken several concrete steps to attract investors from abroad.
Setting up your business and company registration in Bulgaria is advantageous for a multitude of reasons, one of which is the extremely low corporate tax rate of 10% and the tax reductions available to foreign investors who choose to invest in less developed Bulgarian regions with high unemployment. Many foreign investors choose to develop or buy the extremely low-cost real estate in Bulgaria.
As the country is being re-structured, a lot of money is pumped into the construction industry. Company registration Bulgaria investment opportunities include the chemical industry and the energy sector.
Additionally, a multilingual workforce, a dynamic outsourcing market, and excellent infrastructural facilities make company registration in Bulgaria a ripe investment opportunity for foreign businessmen.
Forms Of Companies In Bulgaria
- OOD / ООД – “drujestvo s ogranichena otgovornost / дружество с ограничена отговорност” –Private limited company
- AD / АД – “aktsionerno drujestvo / акционерно дружество” –Public limited liability company
- KD / КД – “komanditno druzhestvo / командитно дружество” – limited partnership
- SD / СД – “subiratelno druzhestvo / събирателно дружество” – general partnership
- ET – “ednolichen turgovetz / едноличен търговец” –sole proprietorship
What is the difference between OOD and AD in Bulgaria?
In Bulgaria, most foreign investors opt for one of the limited company types.
Most entrepreneurs choose to establish a private limited company in Bulgaria. A low minimum capital deposit of 2 BGN (approx. 1 EUR) is required by the government, and any country national can be a shareholder and a director. If a single shareholder founds the business, company registration in Bulgaria can be done within a week of the Director visiting the country, which makes setting up a Bulgarian LLC uniquely attractive.
The minimum deposit required to set up an AD in Bulgaria is 40 000 BGN, and each share must have a minimum nominal value of 1 BGN.
Fundamentals Of A Limited Liability Company
Corporate Tax in Bulgaria
VAT in Bulgaria
Fundamentals of limited liability companies in Bulgaria
|Limited liability company||OOD/EOOD|
|Minimum Share capital||2 BGN|
|Registered office required||Yes|
|Physical office required||No|
|Min. number of Shareholders||1|
|Min. number of Directors||1|
|Local Director required||No|
|Bank signatory must travel||In some cases|
|Timescale for company formation||10 days|
|Timescale for bank account opening||4 days|
|Timescale for obtaining VAT number||7 days|
|Statutory audit requirements||Yes|
|Shelf companies available||Yes|
How can I set up my company in Bulgaria?
Regardless of where you live, you can start a business in Bulgaria in just a few simple steps. CompyCo’s constant support and guidance will direct you toward the best choices for your business, cost to set up company in Bulgaria depending on your business activities, country of origin, and specific needs.
Setting up a business and company registration in Bulgaria takes around 2 weeks. Here is a breakdown of the steps you’ll need to take.
First, the minutes of the meeting of shareholders or general partners must be executed and notarized. A statement of consent and a legal copy of the articles of association must also be notarized. The share capital must be deposited, and a certificate of this payment needs to be issued by the bank.
After that, all the documents mentioned above must be submitted to the Commercial Register at the Registry Agency.
CompyCo has options for remote Bulgaria company registration and bank account opening, in which case all can be done remotely. If you decide to have a bank account in a physical bank, you will have to visit the country, and our lawyer will escort you to meet the notary and the bank on the same day. After that, you can be on a plane back to your home country with a functional net banking from Bulgarian high street bank!
Lastly, the company can register for a VAT number, which takes up to 14 days to obtain.
With a booming economy and cheap and a well-educated workforce, more and more business owners are investing in Bulgaria company registration, owing to lucrative business opportunities. However, setting up a company in a foreign land can pose to be a challenge.
Our experienced team is equipped with the knowledge and expertise required to handle company setup and administration in Bulgaria, so you don’t have to worry about stressful paperwork.
Over the years, we’ve helped countless entrepreneurs and business moguls kick-start their businesses in Bulgaria. We take care of the convoluted start-up procedures to help our clients save time, money, and valuable resources.
Make the most of Bulgaria’s growing industries and lush, green landscapes so you can balance work and play without feeling overwhelmed about where and how to start.
As a full-service company, we offer individualized expertise to facilitate the process further. From taking care of the financial, legal, and corporate intricacies to equipping you with the required information in order to open a company in Bulgaria, our professionals will help your business hit the ground running!
Bank Account Opening
- A national ID or a valid passport
- A valid Bulgarian residency card
- A certificate of good standing issued by the state
Accounting & Taxation
The accounting and taxation obligations to take into consideration are:
- The tax year is the calendar year in Bulgaria
- The taxable profits and investments that sell assets for more than their original cost are trading profits.
- All businesses have to keep accounting books.
- The corporate tax rate is 10%.
- Tax reductions are available to investors who choose to invest in the least developed regions of the country.
How can you employ staff in Bulgaria?
With an educated and highly skilled labor force, Bulgaria has strict laws protecting the country’s workforce. As such, as a foreign business owner outside your jurisdiction, you may not be familiar with the country’s specific hiring practices and laws.
CompyCo won’t just guide you on the best practices to employing and retaining staff in Bulgaria, we’ll provide our full-service assistance to ensure your company is legally-compliant in all matters!
Our professionals and HR specialists will take care of your registrations, writing employment agreements, PEO or direct employing, recruiting, and payroll, among a wide range of other requirements.
We provide custom, tailor-made solutions for various HR-related services, including registering your non-resident company as an employer, drafting employment agreement, recruiting the top talent for your company, and overseeing the payroll.
If you wish to develop a deeper understanding of Bulgaria’s requirements, we can help you out. Our team will set up an account with state-of-the-art software that provides comprehensive insights into HR and payroll requirements and obligations.
With each concern taken care of, you can handle the complexities of the process with the utmost ease which is one of the main advantages of registering your business company in Bulgaria.
Have any questions? Take a look at our HR services page for more information about our International HR services!