Setting up a Company in Bulgaria

Every person whishing to undertake economic activity developing a Bulgarian company may do so by registering to the Bulgarian District Court and the Commercial Register. The most common forms of registered companies are the limited liability company and the joint stock company.

Preliminary activities before registering a Bulgarian Limited liability (LLC) and Bulgarian joint stock companies (JSC)
For both forms of business there are some steps that need to be completed before receiving the permission to start the commercial activity. The companies must reserve a name for the company and issue a document that certificates its uniqueness. The next step for the LLC consists in composing the articles of association or creating a deed for the single member of the company. For JSC, the shareholders hold a constitutive meeting to vote the managing bodies and to accept and sign the act of association. Also all of the partner's shares have to be subscribed. The members of the LLC must get a bank deed, certifying that at least 70% of the minimum required capital has been paid, and the partners of the JSC must make their monetary or non monetary contributions.

Registration in the Bulgarian Commercial Register at the Registry Agency
The entrepreneurs must file an application for registration and attached to it, the memorandum of association, signed by all the members of the constitutive members, in case of the JSC. For the LLC the members authorized to represent the company, or shareholders, for the JSC, must be listed with names, addresses and the number and value of the shares. The application must also contain the notary certified consent, with signature of the managers and persons who will represent the company. Both companies have to submit a bank document of the capital deposited, or the contributions of the shareholders. The last documents needed for the registration process are the companies name uniqueness certificate, the receipt for paid state taxes and the state tax for publishing in the State Gazette.

Registering for VAT taxes
Both types of companies must register for VAT tax, by filling an application to the National Revenue Agency. It must contain the agreement of association of the company, the bank account document, or the document attesting the contributions value, the registration document from the Commercial Register and it must be signed by the managerial board, or the shareholders.

Registration in the National Statistical Institute
The entrepreneurs must register to the National Statistical Institute to obtain a BULSTAT number, in order to be differentiated from other companies, and the application is filed along with the registration document created by the Commercial Register and the agreement of association of the company. Bulgarian law institutes penalties in case this is not done in time.

Registration with the Social Security Administration
The companies must pay social security contributions, and must be registered at the Social Security Administration. This requirement is completed by submitting an application form at the competent office.

Founding a Bulgarian company from abroad
The Bulgarian law permits establishing a company by a foreigner, as the regulations are almost the same. The entrepreneur must assign a person to represent the company who will conduct every action that results in the formation of the company, preferably a local attorney. The presence of the entrepreneur in Bulgaria is not necessary, as the foundation process may be done using the internet.

How long does it take to found a company in Bulgaria?
The registration procedures take over a month, but the company is considered established after registering it with the Commercial Register.