Setting-up a company in Bulgaria

Bulgaria is a territory which is a real crossroads between Western Europe, Central and Eastern Europe, Central Asia and the Near and Middle East.

Its strategic position, in addition to an advantageous 10% corporate tax system, attracts many investors. Obviously, the tax environment is a determining factor for investment. This is why Bulgaria offers you the best tax conditions for investing. You have the possibility to benefit from the most advantageous taxation in the European Union.

Still few in number, the country conceals real opportunities for foreign people who wish to move to Bulgaria or transfer their commercial activity.

Setting up a business in Bulgaria requires a few steps to follow. It is a process that takes a day or two as soon as we have all the documents signed by the manager of the company and the partner (s). Our firm offers you a full service to create a company or a branch of your activity in Bulgaria in a few steps:

  • Choose the legal form of your company:

The most popular form in Bulgaria is the OOD form (LLC). It is a company with limited liability with a minimum capital of 2 leva (approximately 1 euro).

We will accompany you to set up your business in Bulgaria in a few steps:

  • First step: Preparation of the necessary papers for the registration of your company.

The firm prepares the necessary papers for the creation and registration of your company in the Trade Register[1]. To prepare the necessary documents, we will need the following information: information on the partner (s) (passport copy), company name of the company, manager of the company, object of activity, amount of share capital, company headquarters. If you need an administrative address, the firm offers the domiciliation service for your business. The firm prepares the necessary documents in Bulgarian and English. In general, they are the following: the articles of association, the resolution for the creation of the company, a specimen of manager, declarations and power of attorney provided by Bulgarian law. It is important to know that the specimen is a declaration with which the manager gives his consent to be elected and to manage the company. The signature in this document must be certified by a notary either abroad or in Bulgaria. If you decide to sign the specimen in Bulgaria, we will accompany you in this process and organize all the details. In case the partner (s) in the company is a legal person, you would have requested to present more documents regarding this structure.

  • Second step: Opening of the bank account:

Initially, the opening of the bank account is necessary only for the deposit of the capital. In a bank that has its activity in Bulgaria, we guide you for opening an account that is intended for deposit of capital. For this purpose, the manager of the company must report to Sofia. During the opening of the account, we present the signed papers for the creation of the company. If the manager does not have the possibility of coming to Sofia for the opening of the account, we have the possibility of offering this service by distance. For more details, you can contact us.

  • Third step: Registration of the company in the Trade Register:

As soon as all the documents are duly signed and the share capital is paid in, the procedure for registering the company in the Trade Register begins, which is the last step in the creation of the company. We take care of it entirely. In principle, registration is done in 1 or 2 days. The company is registered with its identification number.

The procedure for setting up a business in Bulgaria can be explained in detail by our team upon request.

  • VAT registration:

There are several reasons why you might want to obtain a VAT number – intra-community acquisitions made in Bulgaria, assimilated intra-community deliveries, registration for transactions requiring the taking out of VAT returns, etc.

Under our tax legislation, your company is obliged to be registered for VAT as soon as the turnover reaches 50,000 leva (approximately 25,000 euros) for the last 12 months. This is the compulsory registration regime. On the other hand, there is a liberal regime, in particular the recording of your choice.

As soon as your company is created or during the registration process we can help you with the VAT registration of your company.

Once registered for VAT, you are required to file VAT returns every month, even if the company has not started its activity. The tax period of the VAT return corresponds to the calendar month, regardless of the amount of the taxable person’s turnover. The declaration and payment of VAT to the account of the tax administration must be made no later than the 14th of the month following the tax period in question.

  • Consultations related to the tax assessment of the client’s activity

The firm offers its clients consultations related to the tax taxation of the activity of the company in Bulgaria. We represent our clients before the Bulgarian administration including tax bodies.

The firm also offers its clients the possibility of obtaining a consultation by a English-speaking chartered accountant.

[1] www.brra.bg

 

 

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