Open Company Branch or Subsidiary in Bulgaria

Even though the State of Bulgaria is not one of the most powerful states, economically speaking, there are many entrepreneurs that do not regret the choice of investing in Bulgaria. This can be done either by establishment of a new company, either by opening a branch of an already existing foreign company. A Bulgarian branch is not considered a separate legal entity from its parent company, which bears full liability for the branch's debts and obligations.

Preliminary activities prior to registering a Bulgarian company branch
A company branch is requested to register with the Commercial Register at the Registration Agency, but prior to that procedure, a representative must be authorized and a bank account must be opened for future transactions and, if it is the case the initial capital should be deposited. The Articles of Association of the branch must be prepared for registration by notarization. Also translations into Bulgarian might be necessary.

Registering a Bulgarian company branch with the Commercial Register at the Registry Agency
In order for the company to be able to engage in commercial activities, it is mandatory to obtain a registration certificate issued by the Bulgarian Commercial Register. The application must be signed by the representative and should contain the object of activity of the company branch, the notarized articles of association, certificate issued by the bank, address, authorization of the representative and a proof of existence of the foreign parent company consisting of a registration certificate issued by the relevant institution of the respective country. The certificate of registration for the branch is usually issued in a matter of days.

Registering the Bulgarian Branch for VAT
A Bulgarian branch should register for tax purposes same as a regular Bulgarian company. The registration procedure implies sending an application, signed by the representative, via mail or in person. It should contain information on the company branch and the parent company, mostly on developed activities. Filing the application is done in one day, while completion of the final registration may take up to 12 days.

Setting up a Bulgarian company branch from abroad
A Bulgarian company branch is similar to a regular company in terms of formation. However there are certain requirements. Foreign company branches should be incorporated by authorized representatives, and it's mandatory that the branch have a local address.

How long does it take to set up a Bulgarian company branch?
Establishing a Bulgarian company is a fast process and setting up a branch is no different. Every procedure is completed in a matter of days, including registration with the Commercial Register at the Registry Agency, which is finished in 4 days. Setting up a Bulgarian branch is usually completed in a week, even though the final registration for VAT may take up to 12 days. However the company branch comes into existence, and may commence its activities upon issuance of the registration certificate.

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