Bulgaria is a member state of the European Union, which, due to its convenient geographic location and simple taxation system, is a favorable jurisdiction for business entering in the EU market and carrying out investment activities.
By choosing Bulgaria, you get the following benefits:
- A company in a jurisdiction with a high reputation without the status of an offshore zone;.National treatment of the company.
- Relatively low costs for company registration and annual maintenance.
- Minimum corporate tax rate for EU countries is 10% of profits.
- Tax rate on dividends is 5%, outgoing dividends to EU countries is 0%.
- VAT rate is 20%. Companies with an annual turnover of more than BGN 50,000 (approximately EUR 25,500) are required to register as VAT payers.
- Avoidance of double taxation with a large number of countries.
- Opportunity to keep accounting records in accordance with IFRS.
- Opportunity to legally conduct a gambling business, including online.
You can conduct business in Bulgaria in the following organizational and legal forms:
- Private Entrepreneur;
- Joint Stock Company;
- Limited Liability Company with several Shareholders (ООД);
- Limited Liability Company with one Shareholder (ЕООД).
The most common form of doing business is Limited Liability Company.
Features of Limited Liability Company in Bulgaria:
- A shareholder can be one (ЕООД) or several (ООД).
- The sole shareholder can be the sole director.
- A shareholder can be an individual or a legal entity, a director – only an individual.
- A secretary presence is required.
- There is no requirement for residency of a shareholder, director and secretary.
- Minimumauthorizedcapital is BGN 2 (EUR 1).
- Information about shareholders, beneficiaries and directors is publicly available in the public Register.
- A legal address in Bulgaria is required. It is possible to use a real office or a legal address service.
- Keeping accounting records is obligatory.
Company registration in Bulgaria includes the following stages:
- Choice of name, check in the Companies Register for the presence of an identical or similar name to the extent of confusion.
- Preparation of a package of documents.
- Payment of registration fees and charges.
- Registration in the Register.
What do you need for a company registration:
- Unique name (preferably 3 options);
- Scanned copy of passport and confirmation of the address of beneficiary/shareholder/director.
VigoLex works closely with Bulgaria and knows its pros and cons, therefore, it can provide comprehensive information for clients and help start or structure an existing business in this country.