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.
Company incorporation in Bulgaria is a quite profitable solution for starting a business in the EU: convenient location, low tax rates and favorable legislation
By choosing Bulgaria company registration, 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 (OOD);
- Limited Liability Company with one Shareholder (EOOD).
What is EOOD Bulgaria?
The most common form of company incorporation in Bulgaria is Limited Liability Company, usually with one Shareholder (EOOD).
Features of Limited Liability Company in Bulgaria:
- A shareholder can be one (EOOD) or several (OOD).
- 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.
- Minimum authorized capital 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.
Bolgaria company registration process
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.
Which documents are required for company registration?
What do you need for a company registration in Bulgaria:
- Unique name (preferably 3 options);
- Scanned copy of passport and confirmation of the address of beneficiary/shareholder/director.
How much does it cost to set up a company in Bulgaria?
The cost of the Bulgaria company registration may differ depending on the number of founders, the promptness of the provision of the service, company type etc. Also, one of the possible options is to buy a company in Bulgaria: in this case, the price will also differ on the basis of actual circumstances (company debt, its credit history, etc.)
It is worth not to forget about annual operational costs which are approximately from 600 to 1000 EUR, however they always have to be evaluated on a case-by-case basis.
For company registration, Bulgaria is a very attractive jurisdiction. Companies are subject to a 10% corporate income tax . The costs incurred by a legal entity upon receipt of income are deducted from the taxable amount.
For the purposes of taxation of Bulgaria residents, all revenues received by a legal entity are taken into account. If you are non-resident in Bulgaria, only revenues received in Bulgaria are taken into account.
VAT rate is 20%. The reduced rate is 9%, it is applicable for hotels and owners giving their property for rent. VAT rate 0% is applicable to businesses that are engaged in Bulgarian exports and international transport services.
It should be noted that the companies with an annual turnover of less than 50,000 BGN are exempt from VAT.
How can we help?
VigoLex works closely with company registration 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. VigoLex will help you to understand what company you should open in Bulgaria, what is the cost of such action and whether it is possible to buy an existing operating business in Bulgaria.