Company incorporation in Bulgaria

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.