ATTENTION: this offer is only for non-residents - foreign persons outside the European Union who wish to obtain temporary or permanent residence in Bulgaria!
Bulgaria is an independent European country that became a full member of the EU in 2007. A favorable investment climate has been created here, a transparent system for registering foreign companies is in place. The state supports the business development of non-residents. Company registration in Bulgaria provides many opportunities for business development. This is an entrance to international markets, activity in the developed European space, in conditions of economic stability.
Basic forms of legal and business presence
If you wish to be present in Bulgaria and conduct business in this jurisdiction and throughout the world, it is possible to do so in one of the following forms:
Limited Liability Company (LLC) – is a legal entity suitable for conducting small and medium-sized businesses. The members of this company bear limited financial responsibility for the results of the enterprise's activity, only within the limits of the amounts of their investments. The registered authorized capital of a limited liability company is not less than BGN 2
Limited Liability Company (LLC) – is a legal entity suitable for conducting small and medium-sized businesses. The company consists of one member. The member of this company bears limited financial responsibility for the results of the enterprise's activity, only within the amount of his investment. The registered authorized capital of a sole proprietorship with limited liability is not less than BGN 2
Stock company – a legal entity suitable for large business, which intends to attract additional public financing upon fulfillment of certain conditions. This entity must be created by one or more natural or legal persons. The minimum amount of the share capital of the joint-stock company is BGN 50,000. The minimum nominal value of one share is BGN 1. For certain types of regulated business (such as banking) this value may be higher according to licensing requirements.
General partnership - an option for doing business that can be arranged by at least two persons with unlimited liability for the results of the joint activity under a common business name for such partners. The management in this case is also carried out jointly.
Limited Partnership – an option for doing business where there is (i) at least one partner who bears unlimited liability for the results of joint business cooperation and also manages such joint activities, and also (ii) one or more limited partners who are liable to the extent of their contributions; they cannot participate in organizing the management of such joint business activities.
Other forms of organizations are provided for by the legislation of Bulgaria, for example enterprises with unlimited liability. However, their co-owner can be a foreigner only if he is a permanent resident of the country. Foreigners can register partnerships acting as their members, but there are no tax privileges for them. Joint ventures have the right to provide banking and insurance services (secured against obtaining a license). Ltd. are made to carry out commercial and investment activities. All enterprises in Bulgaria are unified for taxation purposes.
Registration Requirements and Steps
Professional registration and service of the company in Bulgaria is carried out by employees of "Smart Startup UK" from its inception to completion. In general, this registration process covers the following preliminary steps:
Identification of key business priorities and activities that you will realize through the planned enterprise.
Determination of a representative who will carry out registration and other related actions in Bulgaria.
Choosing a company name for a future legal entity.
Collection of all mandatory data for the founders, beneficiaries and managers of the future enterprise.
Arranging a business address for the future company.
Determining the size of the authorized capital and the proportions in which the shareholding is carried out.
Deposit of such amount. Later, such an account can be used to carry out day-to-day transactions of the newly formed company.
Preparation of founding documents for a future legal entity.
Formation and implementation of the standard package of documents, which includes:
>> Application of the statutory form;
>> Declaration of the director (notarized) for consent to manage the company;
>> Declaration (does not require guarantees) of the intention to carry out only those actions that are permitted by law and notified to the authorized bodies;
>> Charter with founding protocol;
>> Receipts confirming the fact of payment of all registration fees;
>> Bank statements for making contributions in favor of the formation of the authorized capital;
>> Declaration confirming the correctness of all data recorded in the documents;
>> Power of attorney – when delegating the powers of the nominal representatives.
Registration in tax and insurance state authorities.
Applying and obtaining licenses and special permits for specific regulated activities that a future enterprise will perform.
The use of an electronic signature is mandatory after company registration - this is the method of communication with the National Revenue Agency in Bulgaria. All types of documents, references and tax declarations are submitted only electronically in the NRA system!
Legal and Regulatory Framework
Local legislation can rightly be considered favorable for carrying out entrepreneurial activities both locally and globally. The main business regulatory bodies operating in this jurisdiction are the Ministry of Economy, the Financial Supervision Commission and the Bulgarian National Bank. The main regulatory act in the field of economic activity is the Bulgarian Commercial Law. The legislation does not set strict requirements for the national composition of the founders. Registration can be done by both local residents and foreigners. However, the registration and maintenance of the company in Bulgaria is carried out taking into account the peculiarities of the legal framework of the legislation for foreigners - the Law on foreigners in the Republic of Bulgaria. The provisions of the tax legislation represent a separate category of normative legal acts. It applies to all foreigners operating in the country. These are the provisions of the laws "On corporate income taxation", "On VAT", as well as the rules for payment of local taxes and fees. Here, simplified taxation applies only to certain types of activities, there are obligations to keep accounts, prepare and submit reports.
Tax system in Bulgaria
If you are considering the option of registering a company in Bulgaria, keep in mind these tax highlights that you may find useful for doing business in Bulgaria:
Corporate Income Tax (CIT) rate – 10%
Personal income tax rate – 10%
Value added tax rate – 20%
Tax rates deducted at source – (i) Dividends – 5% (ii) Interest – 10% (iii) Royalties – 10%
Tax rates on capital gains – (i) corporate – same as basic CIT tax rate (ii) personal – 10%
Two VAT rates in Bulgaria should be noted separately:
20% - for most taxable transactions;
0% - for export operations and those not subject to taxation under international agreements.
The country has agreements with many countries to avoid double taxation. The corporate tax rate is considered one of the lowest in Europe. The basis for calculating corporate taxes is reduced by the amount of dividends.
Advantages of Jurisdiction
Creating a company in Bulgaria is useful for a number of reasons:
It is a prestigious European jurisdiction that provides access to prospective markets.
Loyal legislation encourages the implementation of profitable activities.
In Bulgaria, it is possible to carry out direct transactions without notifying the state authorities about the activities carried out.
Jurisdiction provides access to the opportunities granted to EU countries.
The registration procedure in Bulgaria is simple and fast.
Entrepreneurs have the right to prepare financial statements according to IFRS standards.
There are many incentives for foreign investors in certain industries (manufacturing, research and development, education, renewable electricity generation, etc.).
ATTENTION: this offer is only for non-residents - foreign persons outside the European Union who wish to obtain temporary or permanent residence in Bulgaria!
CREATE A COMPANY
Check and reserve a company name
Company registration, including state fees
Legal address for 1 year
Nominal service for 1 year
Account Discovery
Set of statutory documents of the company in electronic form
Contribution to the authorized capital of the company
VAT registration
Obtaining a Foreign Investment Permit
Opening an account in: CCbank, OTP DSK, UBB, Unicredit Bulbank
Assistance in opening a personal bank account
Apostilled and translated corporate documents
Support for obtaining a residence permit
Free consultation
Help with online trading and opening an account at viva.com for online trading
Accounting services - 12 months
Annual renewal (payable from the second year)
*Within 20 days
IMPORTANT! We can provide you with the initial share capital (if the amount is over EUR 5,000) for the registration of your company in the form of a loan from our company.
Please, if you are interested, make an inquiry to us.
What is the procedure!
1. You submit a request for company registration using the request form.
2. We check if the registration company name is free and eligible for registration.
3. Choose a bank that suits your company's needs from a list of Smart Startup UK partner banks provided.
4. We send you a proforma payment invoice to pay to our bank account + the initial capital amount of your company.
5. You receive all necessary company documents for verification.
6. You receive details of your newly opened bank account.
7. In the specified period (for Bulgaria it is 20 days), you receive all the services included in the package.
8. You can manage through our platform all the services included in the package, as our team works 24/7 and you can get help from us within up to 30 minutes. We have built an internal ticketing system for our customers through which we process your every support request.
All services like management, accounting, request to open bank accounts, licensing, filing tax returns, paying taxes and more are done through your account on our platform, it makes it easy managing your business!
