Company Formation Bulgaria
Updated on Monday 14th May 2018
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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 to 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 through a 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.