Bulgaria’s process of registering companies is quite simple. This is one of the major contributing factors of ex-pats setting up their businesses here.
Moreover, you can open a company in Bulgaria without being physically present in the country. This is done with the help of an attorney. Additionally, foreigners also get to enjoy a favorable 10% corporate tax and the pleasing business climate of the country.
Incorporation of an entity in Bulgaria can be the wisest decision as there are numerous benefits one can reap from the country. The country is friendly to foreign businesses and one can stand to gain a lot from various spheres of the economy.
Here, we’ll look at the best tips on how to open a company in Bulgaria.
Reasons to Open a Company in Bulgaria
- Easy Registration Process
Unlike most places, registering a company in Bulgaria doesn’t require complex formalities. Moreover, investors can rapidly start their business operations after meeting all the legal requirements.
- Efficient Business Approvals
Bulgaria’s business approval process is quite fast. After your firm meets all the imposed conditions, you can easily acquire the licenses and permits for your business. There are no complicated steps, and this enables you to start your operations right away. Bulgaria company incorporation can be a smooth affair especially when one consults with the professionals.
- Favorable Tax Structure
As earlier pointed out, the 10% corporate income tax is among the top reasons why foreign investors choose Bulgaria. It’s a favorable tax regime that attracts businesses from all over the globe.
- Well-Skilled Workforce
Bulgaria consists of a multilingual and skilled population, which is another good reason to invest in the country. It is easy to get an affordable labor force which is great for any business.
Things to Consider Before You Open a Company in Bulgaria
1.Legal Business Forms
Choosing a legal business form must be at the top of your plans. This is because the type you select determines its liabilities and how it can run its operations.
Explained below are all the legal business forms in Bulgaria:
- OOD – This is a private limited liability company, and it’s the most common business entity in Bulgaria. It’s owned by two or more parties who share the same limited responsibility.
- EOOD – This is a single person limited liability company. Just from the name, it’s a business entity consisting of one sole owner who bears all the liabilities.
- ET – Also known as a Sole Owner, an ET is a business entity simplified for small ventures. Like the EOOD, the liabilities are the owner’s full responsibility here.
- AD – This is also known as a Joint-Stock company. It’s a commercial company with its members owning the share capital.
- Freelance – This is an individual registration.
- Branch in Bulgaria – This allows for foreign businesses to register a branch in this country.
2. The Costs
When it comes to the costs of opening a company in Bulgaria, it mostly depends on the type of business you plan on registering. Different business forms vary in operation costs, and it’s the same with the formation cost.
However, the following are always applicable in Bulgaria:
- Registration Fee – This accounts for the company’s name, registration forms, certificate of incorporation, and the company’s documents.
- Office Costs.
- The Minimum Share Capital – For an OOD opening, it costs 1 EUR.
- Formation Fee.
- Accounting Costs.
3. The Steps
The following are some of the steps to consider if you want to open a company in Bulgaria:
– Choose the name of your company.
– Register a bank account for your company
– Register a Bulgarian address for the company.
– Register in the Government Official Register.
– Apply for business licenses.
– Register as an LLC for tax purposes.
One thing to love about the Bulgarian business climate is that the country’s corporate laws don’t suffocate foreign firms in any way.
A foreign company is privileged and subjected to the same terms as that of locally-registered firms.