Bulgaria Company Formation

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Bulgaria

Company Formation and Related Services

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Company Formation in Bulgaria

F.A.Q.

For foreign investors looking for development opportunities, Bulgaria could be an ideal destination due to its cheap and skilled workforce, pro-investment economy and taxation system.
 

If all conditions for opening a company are met, the incorporation process may turn out very simple for investors wanting to expand their businesses in Bulgaria.
 

STEPS FOR COMPANY FORMATION IN BULGARIA

When establishing a company in Bulgaria, the first step a shareholder or shareholders must take is to choose three names for the new company and submit them for approval with the Companies Register. An application form stating the shareholding structure of the company and the business activities must be filled, also upon company formation in Bulgaria.

Additionally, the client must provide identification documents, a recent utility bill that states the residential address of the shareholder, the articles of association, the certificate of incorporation and a certificate of good standing.

If the procedure will be completed by a representative of the owner of a company, a power of attorney will be required. The power of attorney must be notarized and contain the apostil.

Together with all the required documents, the representative may then submit the application for registration with the Company Registration Office and set up a bank account. After the registration, documents are issued and the company will be fully legal and ready to operate.

For the registration process, the client will also need a company name uniqueness certificate, the statement for taxes that have been paid and the tax for publishing in the State Gazette.

The third and last step for company formation in  Bulgaria is submitting an application form with the National Revenue Agency for VAT registration. Together with the application, an agreement of association of the company, a bank account statement or the documents stating the contributions value, the registration document signed by the managerial board or founding members must be submitted as well.

REQUIREMENTS FOR COMPANY FORMATION IN BULGARIA

Any person - no matter his or her nationality or residency - can be a director or a shareholder in a company in Bulgaria. The shareholders of a Bulgarian company can be natural persons or legal entities and the company must have a local registered office (BridgeWest offers this type of service)

In order to establish a limited liability company in Bulgaria, there is no requirement for a start-up share capital.

SERVICES PROVIDED FOR COMPANY INCORPORATION IN BULGARIA

- drawing up the articles of association for company formation in Bulgaria that can be signed thorough power of attorney (Bulgarian laws require power of attorney for any public notary proceedings);

- drawing up documents for company incorporation in Bulgaria: specimen signatures, identification papers copies, application form required by the Company Registration Office;

- arranging public notary proceedings (all procedures for company incorporation are done in front of a Bulgarian public notary);

- a registered office in Bulgaria on demand; the registered office serves as headquarters for the company in Bulgaria and it will be made public;

- setting up a bank account for the company in Bulgaria; BridgeWest will help you in setting up the share capital bank account, as well as a current bank account once the company is incorporated.

- recommending a Bulgarian accountant, as accounting services are needed for new businesses in Bulgaria.

BridgeWest is also able to offer ready-made Bulgarian companies and VAT registration.

Establishing a company in Bulgaria can be done by:

- setting up an O.O.D. (druzhestvo z ogranichena otgovor - limited liability company)-the Bulgarian O.O.D. requires at least one shareholder and a director and it must have a registered office. The minimum share capital for an O.O.D. in Bulgaria is 5,000 BGN and 70% of the start-up capital must be paid upon incorporation;

- registering an A.D. (aktsionerno druzhestvo - joint-stock company). The Bulgarian A.D. requires at least two shareholders and it must have a registered office. The minimum share capital for a closed joint-stock company is 50,000 BGN, while for a public joint-stock company the minimum share capital is 100,000 BGN. Minimum 25% of the start-up capital must be paid upon incorporation.

- establishing a Bulgarian branch, subsidiary or representative office. Our Bulgarian attorneys can help you set up branch offices, subsidiaries or representative offices for any type of foreign company. They can be set up as separate entities or as extensions of the parent company.

BULGARIA KEY FACTS

- the corporate tax in Bulgaria is 10%;

- the Bulgarian standard VAT rate is set at 20%, but a 9% rate is applied to tourism facilities;

- the dividend tax in Bulgaria is 5% and dividends paid to countries in the European Union are exempt from this tax.

Please contact us for more information and prices implied by opening a company in Bulgaria. If you need legal services in Bulgaria, you may set up an appointment with our local lawyers.

 



Articles on Company Formation in Bulgaria

Types of Bulgarian Companies

There are several types of company appropriate for conducting business in Bulgaria. According to the Commercial Law issued by The Supreme Court of Cassation of the Republic of Bulgaria, entrepreneurs can choose between five main types of business. Article 64, chapter 10, division 3, mentions their g ...

Set up a Company in Bulgaria

Every investor willing to set up a company in Bulgaria has to accomplish several tasks, including the  registration with the Bulgarian District Court and the Commercial Register. In Bulgaria, the most common forms of registered companies are the limited liability company and the joint stock com ...

The Commercial Register in Bulgaria

The Bulgarian Trade Register functions through Registration Agency institution. The Agency was founded in 2004 with the adoption of the Law on Cadastre and Land Register published in the Official Gazette of Bulgaria and in 2005 it took another function - Leading the Trade Register. The Agency has 11 ...

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 c ...

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 BGN, approximately 1 ...

Paying Taxes in Bulgaria

  1. What is the corporate tax in Bulgaria? The corporate tax for a Bulgarian company is 10%, with the exception of licensed investment companies, collective investment schemes and special purpose investment companies which are exempt from paying corporate tax. 2. What is the VAT in B ...

VAT in Bulgaria

1. What is the VAT in Bulgaria? In Bulgaria, the standard VAT rate is 20%. This rate is applied for domestic supplies, intra-community acquisitions and importation from non-European countries. There is also a 9% reduced rate for VAT for companies in tourism and hotel accommodation services. Exemptio ...

Company Dissolution and Liquidation in Bulgaria

  BridgeWest handles all steps required for company liquidation in Bulgaria. Please contact us via email or phone for appointing a liquidator to carry on the company dissolution, submitting the required application forms, applying to the territorial National Revenue Agency for a ...

Open a Representative Office in Bulgaria

Are there any special requirements for creating a Bulgarian Representative Office? According to the Investment Encouragement Law, the representative offices in Bulgaria don’t have legal entity and can perform only non profit activities such as: identifying the market opportunities and making s ...

Register a Non Profit Organization in Bulgaria

  The non profit organizations in Bulgaria are regulated by the “Law on nonprofit legal entities” and may be foundations or associations. According to the law, a non profit organization may be established by both Bulgarian and foreign citizens and it’s governed by the regulati ...

Nominee Director in Bulgaria

The Bulgarian drujestvo s ogranichena otgovornost(limited liability company) and the aktsionerno druzhestvo(joint stock company) are administrated by one or more directors. In certain situations, the name of the beneficial owner is desired to be kept secret from public so a third party is appointed ...

Open Business in Bulgaria
We guarantee a cost-efficient solution for full company setup, bank account and VAT registration

Meet us in Sofia

Call us now at +44 203 287 0408 to set up an appointment with our lawyers in Sofia, Bulgaria. Alternatively you can incorporate your company without traveling to Bulgaria.

As a BridgeWest client, you will beneficiate from the joint expertize of local lawyers and international consultants. Together we will be able to offer you the specialized help you require for your business start-up in Bulgaria.