Company Registration in Bulgaria: Optimize your business
Company Registration in Bulgaria: Optimize your business. Bulgaria has emerged as an attractive destination for entrepreneurs, investors, and digital nomads seeking a business-friendly environment within the European Union. With its strategic location, low tax rates, cost-effective business operations, and growing community of professionals, Bulgaria offers unique advantages for company registration. If you are a digital nomad and you want to register as a freelancer check our article HERE.
In this article, we will guide you through the company registration procedure and highlight the benefits of starting a business in Bulgaria, including how our legal and accounting services can help you set up and manage your company efficiently.
The Procedure for Company Registration in Bulgaria
Registering a company in Bulgaria is a process that needs professional guidance as it requires compliance with several administrative steps. Here’s a simplified breakdown of how to get your business legally established:
- Choosing a Company Structure: The most common types of business structures in Bulgaria are:
- Sole Trader (ET)Limited Liability Company (OOD) or Sole-owned Limited Liability Company (EOOD)Joint Stock Company (AD)
- Preparing Founding Documents: You must draft your company’s Articles of Association, which outline the business purpose, management structure, capital distribution, and other foundational details. There are other registration documents as well. You also need an address in Bulgaria. More information about it can find in our article Registered Address in Bulgaria: Everything You Need to Know.
- Registering the Company Name: You must ensure that your chosen company name is unique and not already registered.
- Opening a Capital Account: Before registering, founders must open an accumulative capital bank account at a bank or other financial institution to deposit the share capital of the company (minimum amount is BGN 2, or approximately €1, for an OOD).
- Filing Documents with the Commercial Register: All registration documents, including your Articles of Association, proof of deposited capital, and a notarized declaration of consent from the company’s managing director, must be submitted to the Commercial Register at the Registry Agency. This can be done by a distance through a qualified lawyer.
- Receiving Your Company Registration Certificate: Once the documentation is approved, you will receive a company registration certificate, and a unique company identification code, and be officially listed as an active business entity.
- VAT registration: Depending on your expected annual turnover, you may need to register for VAT in Bulgaria. This can be done simultaneously or shortly after registering your company.
Advantages of Company Registration in Bulgaria
Choosing Bulgaria as a base for your business operations can be highly beneficial for several reasons:
- Low Corporate Taxes
Bulgaria has one of the lowest corporate tax rates in the European Union at just 10%, which can significantly boost your company’s profitability. In addition, personal income tax is also a flat 10% and dividend tax is 5%, making Bulgaria an attractive destination for owners and employees alike. There is additional information about personal taxes in Bulgaria, which can be found in our article HERE, and some more information about becoming a tax resident in Bulgaria can be found in our ARTICLE.
- Cost-Effective Business Operations
Operating a business in Bulgaria is highly cost-effective. From office space rentals to employee salaries and professional services, expenses are generally lower compared to Western Europe. This cost advantage allows startups and small businesses to grow quickly without a significant financial burden.
- EU Membership
As a member of the European Union, Bulgaria offers unrestricted access to the EU market. This means that your business can operate seamlessly across borders within the EU, benefiting from harmonized regulations, lower trade barriers, and easier movement of goods and services. For transactions within the EU, the reverse VAT mechanism is applicable and VAT registration (check for more information) is mandatory in some of the cases.
- Expanding Community of Digital Nomads and Entrepreneurs
Bulgaria has gained popularity among digital nomads and tech entrepreneurs, thanks to a vibrant and growing community. Cities like Sofia and Plovdiv have become hubs for coworking spaces, networking events, and innovation, making it an ideal environment to collaborate and thrive.
- Stable Economic Environment
Bulgaria boasts a stable economic and political climate, which is crucial for long-term business planning. The country’s banking system is well-regulated, and it maintains a pro-business stance, attracting both local and international investors.
How We Can Assist You with Company Registration
Navigating the legal and administrative requirements for company registration in Bulgaria can be complex, especially if you are not familiar with the local language and laws. Our experienced team offers comprehensive legal and accounting services to simplify the process and ensure full compliance. Here’s how we can help:
- Company Formation Assistance: We handle all paperwork, including preparing and filing necessary documents with the Bulgarian Commercial Register.
- Legal Consultancy: Our experts provide guidance on selecting the appropriate business structure and understanding your legal obligations.
- Accounting and Tax Services: We offer tailored accounting solutions to manage your financial records, VAT registration, tax filings, and more.
- Ongoing Support: From annual financial statements to administrative compliance, we support your company every step of the way.
- Debt collection in Bulgaria
Why Choose Our Services?
- Expert Knowledge: Our team is well-versed in Bulgarian business law and has extensive experience helping foreign entrepreneurs set up companies.
- Bilingual Support: We offer services in multiple languages to ensure you understand every step of the process.
- Transparent Pricing: We provide clear and upfront pricing with no hidden fees.
Get Started Today!
Ready to establish your business in Bulgaria? Contact us to discuss your needs, and let us help you make the most of the country’s favorable business environment. Our legal and accounting experts are here to turn your entrepreneurial vision into reality.
Company registration in Bulgaria has never been more rewarding. Take advantage of the opportunities today and become part of Bulgaria’s thriving business community!
You can reach us at:
tel.: +359895443792
email: ivanov@bi-lawfirm.com