Guide to Company Incorporation in Bulgaria

1. What is the minimum share capital of a Limited Liability Company in Bulgaria ?
Limited Liability Company is the most common vehicle for doing business in Bulgaria due to its straight-forward incorporation process, simple structure and minimum capital requirement of only 2 Leva, approximately 1 EUR.

2. What is the minimum share capital for a Joint Stock Company in Bulgaria ?
The Bulgarian Joint Stock Company is designated for business at a larger scale, therefore it has a more complex structure, the process of incorporation is longer and the minimum capital requirement is as high as 50.000 Leva, or 26.000 EUR.

3. Are there any special requirements for establishing a Bulgarian Limited Liability Company?
A Bulgarian Limited Liability Company can be established by one or more natural persons or legal entities, Bulgarian or not. The liabilities of the shareholders are in strict depending relationship with their investment in the company's capital. The procedure of registration requires submitting the company's memorandum and articles of association at the Bulgarian Registry of Companies. A Bulgarian company can be established by a company representative authorized with power of attorney by the company owner. Usually a Bulgarian company can be set up without the presence of the shareholders in the country, provided a representative completes all the required procedures.

4. How can I register for VAT in Bulgaria?
The VAT threshold in Bulgaria is 50.000 Leva, approximately 35.500 EUR one calendar year. Once the threshold is crossed, the company is obliged to submit an application for registration within 14 days. The application can be submitted by a representative of the company at the Bulgarian Tax Authorities. In general registering for Bulgarian VAT can take 3 to 4 weeks, but the time period may vary.

5. How can I open a bank account in Bulgaria?
Companies in Bulgaria have to open bank accounts in order to submit the initial capital and to operate transactions. In order to do so, certain documents need to be presented to the chosen bank. The presence of the account owner is not required. Most Bulgarian banks offer the possibility of online banking; therefore the account can be managed online, from any country.

6. How can I recruit personnel in Bulgaria ?
The rate of unemployment is rather high in Bulgaria; therefore a newly established company is able to find employees for its workplaces in a short period of time. Most entrepreneurs create company accounts on job websites and select the most appropriate candidates in correspondence with their requests. Another option entrepreneurs have is to collaborate with recruitment agencies that offer a wide range of candidates, selecting the best suited candidates following the requests of the company.

7. What is the average salary in Bulgaria?
The average net salary in Bulgaria is around 900 EUR.

8. What is the overall economical situation in Bulgaria?
The country has a lot of advantages starting with its geographical location and natural resources. The economy of Bulgaria is industrialized with a steady growing tourism sector and an advanced private sector. The country has a highly educated population, and a continuously growing agriculture oriented towards export. The country has been affected by the global crisis, and still ranks as a middle-income country, expected to join Euro zone. In the last few years the Bulgarian government has been taking measures to revive the less productive business sectors, influencing a steady flow of foreign investors.

BridgeWest offers company registration in Bulgaria, including virtual office and other related services.