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.
Check out more about different types of entities here.
To find out the cost to set up company in Bulgaria will be determined by the: form of company, number of shareholders, choice of banking, residency of shareholders and directors, and business activity. If you wish to find out the exact process, requirements, and fees for your specific case, complete this simple online form and we’ll send you an offer within 24 h.
Fundamentals Of A Limited Liability Company
Corporate Tax in Bulgaria | VAT in Bulgaria |
|---|---|
10% | 20% |
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 |
| Other requirements | 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.
Setting up a company in Bulgaria can be avoided in some cases where the only plan is to employ Bulgarian residents. We can set up your foreign company as Employer. In case you must register a Bulgarian company, the process of Employer registration is the same.
However, if you are choosing between a few countries in Europe and you are not sure where to incorporate, have a look at our tips how to make the right choice, or talk to us today for free.
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!
Company Registration in Bulgaria
What Should I Know About Registering A Company In Bulgaria
When it comes to starting a business in any location, registration is essential. But what should you do if you want to register your company in Bulgaria? In this blog post, we will provide you with all the information you need to register your company in Bulgaria effectively and avoid common pitfalls. From taxation requirements to setting up shop in the right jurisdiction, we have everything covered. So don’t hesitate—get started today and take advantage of all the benefits that come with registering a company in Bulgaria!
What is a company registration?
If you are thinking of starting your own business in Bulgaria, you will need to register the company with the authorities. Registration is a simple process and can be done online or in person. In order to register the company, you will need to provide information about its name, location, registered capital, and management team. You will also need to submit an application form and pay a registration fee. Once your company has been registered, you will be able to start filing taxes and obtaining licenses required by law.
How much does it cost to register a company in Bulgaria?
The cost to register a company in Bulgaria ranges from around $170 to $500, depending on the extent of the required paperwork. The process generally takes between two and four weeks, although it can take up to six months in some cases. There are also several optional costs associated with registering a company in Bulgaria, such as paying for a business license or tax declaration.
What are the benefits of registering a company in Bulgaria?
When registering a company in Bulgaria, you will enjoy many benefits. First and foremost, registering your company will make it easier to track its legal status and keep updated on any changes. Additionally, registering your company in Bulgaria will allow you to conduct business activities without the need for specific permits or licenses from the government. Finally, registering your company in Bulgaria will increase your credibility and reputation within the local business community.
What are the requirements to register a company in Bulgaria?
There are a few requirements that a company must meet in order to register in Bulgaria. The first is that the company must have a registered address. Second, the company must have at least one shareholder who is legally resident in Bulgaria and has been registered as such with the Bulgarian National Bank. Finally, the company must file an application with the Ministry of Economy, Trade and Sustainable Development (META) and pay applicable taxes.
When should I register my company in Bulgaria?
When should I register my company in Bulgaria?
There is no one-size-fits-all answer to this question, as the best time to register a company in Bulgaria will vary depending on the specifics of your business and country of origin. However, some key factors to consider include:
1. Familiarity with the local legal system and corporate registration procedures: A good starting point is to research the Bulgarian legal system and corporate registration process before making any decisions. This will help you better understand what needs to be done and how long it will take.
2. Business purposes and legal structure: Once you have a good understanding of the Bulgarian legal system, you’ll need to decide whether your business will be structured as a sole proprietorship, partnership, corporation or other type of business entity. The type of entity chosen will also have an impact on specific filing requirements (e.g., annual reports) and tax obligations that must be met.
3. Corporate name availability and appropriateness: Make sure to choose a corporate name that is available for use in Bulgaria (and preferably internationally), is not already being used by another company, and meets all relevant trademark regulations. It’s also important to consider the name’s pronunciation (e.g., does it contain any accents or special characters?) and potential trademark infringement risks before registering it.
4. Filing fees & paperwork required: There are several filing fees associated with setting up a company in Bulgaria, as
Conclusion
When it comes to registering a business in Bulgaria, there are a few important things to keep in mind. Firstly, make sure you have the correct paperwork in order, including a Business Registration Form and an Office Location Certificate. Secondly, be aware of the fees that need to be paid when filing your application. Thirdly, understand the necessary insurances that must be taken out before setting up shop in Bulgaria. Finally, make sure you are familiar with local regulations so that your business can run smoothly from day one.
The two most common types of Hungarian companies are the KFT, Zrt and RT companies. The first two refer to limited liability companies, while the last one corresponds to either public or private joint stock companies. Some of the main differences between these two popular company types are explained below.
Private Limited liability companies (Zrt) are ideal for those people looking to start a small-scale business in Hungary. The Hungarian government requires a lower incorporation cost for this type of business and has set a minimum share capital amount of only 3 HUF.
A Hungarian private joint stock company (ZRT) is liable for the fulfillment of the company’s obligations with all its assets. The minimum share of the company’s assets is 5 million HUF. This type of company can have one or more founding members and must be overseen by a board of directors.
The main difference between Hungarian private (ZRT) and public (NYRT) joint stock companies is the value of the mandatory deposit of shares. With a higher requirement for NYRT companies, the demand is for 20 million HUF. Every public joint stock company must have a management and supervisory board overseeing its activities.