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Our lawyers can assist and advise you in setting up a Bulgarian company. It generally takes no more than one week to register a company in the Trade Register. The minimum starting capital of the limited companies is 1 Euro.

We will help you to choose the most suitable corporate form for your business, prepare the company documents and represent you during the registration procedure in front of the Bulgarian commercial register, as well as to open company accounts, apply to the competent tax authorities for a Value Added Tax Identification Number for your new company.

We also provide accounting support for your company through an accounting partner firm.

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Types of companies that can be registered in Bulgaria

The most common company structure

A limited liability company in Bulgaria can be incorporated with i) a single shareholder (in these cases, the abbreviation is EOOD to denote the single-member nature of the company) and ii) a single director, whom both can be of any nationality and are not required to be ordinarily resident in Bulgaria. Set at only €1, the minimum capital required for LLC incorporation is another advantage of Bulgaria business setup;

Following incorporation, the company will be required to file its annual financial statements with the Bulgarian Trade Register every year, before March 31st.

LLC Advantages

Best choice for mid-size and big companies

A joint stock company (JSC) is known in Bulgaria as an AD company and can be incorporated with a single shareholder (in which case the abbreviation becomes EAD) or two or more shareholders (AD company). To approve the Bulgarian JSC setup, Bulgarian authorities will require an initial share capital of at least €25,000, 25% of which must be paid up at incorporation and the appointment of a board of directors, comprising at least three members who can be of any nationality and iii) the appointment of a certified accountant;

Our Clients often find that an AD or EAD company allows them to raise capital more easily in Europe in order to finance their business expansion. This is because i) Bulgarian company law does not restrict the issuance and transfer of shares by JSCs and ii)Bulgarian JSCs can be listed on either the Sofia Stock Exchange or on another stock exhchange in the EU, including: EuroNext; Athens Exchange and the London Stock Exchange;

All Bulgarian JSCs are required to have their balance sheet and annual financial statements audited by a certified accountant and file them with the Bulgarian Trade Register before March 31st each year.

Stock Company innovires

A solution for part of the foreign companies

In accordance with the Bulgarian Trade Law, foreign companies can open branch office entities in Bulgaria to do business. Because branches are not considered as separate legal entities, their parent company will be subject to unlimited liability for losses incurred by the branch;

The Bulgaria branch must i) appoint a resident legal representative and ii) file annual financial statements with the Bulgarian Trade Register before March 31st each year. e March 31st.

Branch office
Branch office

All in hand

The Bulgaria representative offices can be 100% foreign-owned, but cannot pursue any commercial activities in Bulgaria. Consequently, this entity can only engage in liaison activities, market research and promoting the business of the parent company.

representative office

Why Bulgaria
Advantages of company registration in Bulgaria

Simplicity.

A Bulgarian limited liability company can be incorporated within one week, with a minimum of one shareholder and one director, who can be of any nationality and place of residence. Conveniently, the minimum paid up share capital is only €1 and there is an option for our Client not to travel to complete Bulgaria business setup.

Lowest taxes in Europe

We’ll let the fact speak for itself:

  • Corporation tax: 10% (the average corporation tax rate in Europe is 25%)
  • Personal income tax: 10% (the average personal income tax rate in Europe is 40%)
  • Dividend tax: 5% (0% when the European parent/subsidiary directive applies)

Of considerable importance is the fact that the company registration can be also done from another country, without the investor coming to Bulgaria physically, via a power of attorney. The PoA should be notarized in front of the Bulgarian Embassy or Consulate.

Unlike the laws of some foreign countries, the law in Bulgaria does not require a minimum number of people employed in one company. The company may have only one owner and the owner can be a foreigner. The owner himself may also be a manager and to sign for the company – in this case there is no need to appoint a manager. The manager can be appointed at the discretion of the owner and can be given only certain representative powers, which are controlled entirely by the owner so as to minimize the opportunities for abuses.

VAT registration is not mandatory under €25,000 annual turnover of taxable goods.

Bulgaria boasts VAT refund agreements with 10 countries outside of EU.  Moreover, tax losses can be carried forward up to 5 years.

Licensed real estate investment trusts (REITs) are fully tax-exempt.

Our clients should know that companies incorporated in municipalities with higher level of unemployment can receive up to 100% tax retention.

The rate of Bulgarian currency (Lev) is fixed to the common European currency (Euro) and has remained unchanged for more than 10 years.

The initial business costs are one of the lowest in the EU.

Bulgaria has a highly-qualified, well-motivated, flexible and multilingual labour force.

The wages in Bulgaria are among the lowest in Europe. The minimum salary is also the lowest in the EU. Furthermore, the social security contributions on salaries are very low.

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Desislava Dimitrova
Why us.
    
Legal issues can very easily get in the way of running a business. Having to take time out of a busy schedule to address these situations can take attention away from important issues at hand. Experienced business law attorneys can help to minimize these distractions and let business owners to concentrate on what they do best: run their businesses. sign