Bulgaria welcomes all foreign investors thanks to its competent workforce and advantageous corporation taxation. The country has simple registration formalities and minimal prerequisites for company incorporation. If you have all the essential paperwork ready in advance, it just takes 3 working days. In this country, business activity may be registered by any foreign entity or individual. Foreigners who are investors include those who include:
- A resident of Bulgaria.
- A citizen of a nation that is a part of the European Union.
- A citizen of a non-EU nation.
Furthermore, a foreign investor can use a power of attorney to establish a corporation here by handing the process off to a reliable local law firm. Legal entities are companies that have been registered there.
The process of forming a business involves one major phase:
- Getting the required paperwork together and registering the business with the registry agency.
In order to comply with tax regulations, business owners need to use Bulgarian accounting services after a new company is established.
Incorporation costs
The following factors affect how much the incorporation process costs:
- The kind of business you choose to register.
- The minimum capital required by law.
Kinds of businesses foreign investors can set up in Bulgaria
There are five main types of firms registered:
- Joint-stock company.
- Limited liability company.
- Single-member limited liability company.
- General and limited partnerships.
- Sole proprietors.
Limited liability company
An LLC (OOD) or SMLLC is the most common type of limited liability company registered in Bulgaria. As their names imply, both include little responsibility, nonetheless, the number of stockholders is the primary distinction between the two. The single-member LLC (EOOD) just requires one shareholder, while the LLC (OOD) requires a minimum of two shareholders to be registered. The needed minimum capital is 2 BGN, which is equivalent to 1 EUR, and it must be put in a local bank account. This money is divided into shares for an OOD (minimum 1 BGN each). The General Meeting of Shareholders makes the decision about an OOD incorporation.
Additionally, the newly registered business must keep a local legal address. Be aware that the OOD may utilize a virtual office service rather than opening a real office.
Joint stock company
In Bulgaria, large companies are permitted to form a joint stock corporation. For closed joint stock firms, the minimum capital in this situation is 50,000 BGN (or roughly 25,000 EUR). Open JSCs that trade shares on the stock market require a minimum of 50,000 EUR in capital. The business name must be distinctive and conclude in AD.
General/Limited partnership
Their respective liability is where the two diverge most. Unlimited liability in an SD suggests that, in the event of a liquidation, personal assets might be impacted. The owner’s liability is distinct from that of the company. As a result, the partners’ liability in the event of liquidation is limited to their capital portion.
Sole proprietorship
The most straightforward and least expensive process is for registering for this business.
Even if EOOD (SMLLC) and ET are comparable, the latter is frequently chosen. Because of ET’s unlimited liability and full profit retention.
Bulgarian company registration essential procedures
As previously indicated, forming a business in Bulgaria is a rather simple process:
Select a name for your Bulgarian business
The first major step is to select a business name. appoint a firm representative agent
Put the bare minimum (2 BGN for OOD) in the bank account of your business.
Prepare all required paperwork
Submit all corporate paperwork to the Commercial Register. You may check and reserve your company’s business name online with the Commercial Register. For LLCs, it must be distinct and conclude with OOD (the most popular type registered). Keep in mind that all company names listed in the registry are written in Bulgarian (Cyrillic). In Bulgaria, a portion of the paperwork must be signed before a notary. A notarized specimen of the manager’s signature is required by the Commercial Register.
Deposited at a nearby bank is the required minimum share capital. You must open a business bank account. At this time, the registration cost can also be paid. In order to register an OOD (LLC) in Bulgaria, the following papers are required:
- Documents for the general meeting.
- The articles of incorporation, and the Commercial Register registration form.
- Sample notarized signature and written authorization from a company representative.
- Bank statement for minimum capital deposited.
- business name certification.
- ID copies for LLC owners.
