Bulgaria is a member state of the European Union, a country that is an attractive place for stable financial status for wealth creation and a good tax regime, Bulgaria’s financial stability is a prerequisite for business success. The country’s local currency – the leva(BGN) has the same fixed rate as Euro, protecting businesses from currency shock. The banking system of Bulgaria is well-developed, and it has one of the world’s best tax systems. Foreign companies make up most of the businesses in the country.
The National Revenue Agency are modernized, conducting most of its checks and inspection electronically, likewise submitting documents to the Commercial Register. The procedure used is simple and minimizes bureaucracy.
The workforce in Bulgaria is highly skilled, and the conditions for incorporating a business and the method for registering it in the country are both straightforward and uncomplicated. The process of registering a corporation takes a total of three full working days to complete. In addition, foreign investors have the option of appointing a reputable law firm to handle the registration process on their behalf and creating a company by executing a power of attorney. Legal entities are the same thing as companies that are registered in Bulgaria.
Stages for registration of a company
The formation of a company in Bulgaria involves two stages:
- Preparation of the necessary document
- Registration of the company in the commercial register
Other requirements after registration are related to taxation and hiring accounting services in Bulgaria.
Limited Liability Company (LLC/SMLLC or OOD/EOOD)
This model is by far the most common one found in Bulgaria. The number of shareholders is what differentiates the two varieties of limited liability: an LLC (OOD) must be registered with at least two shareholders, whereas an SMLLC (EOOD) can have just one member and only needs one shareholder to be considered registered.
The minimum required amount of capital is 2 BGN, which is equivalent to around 1 Euro, and must be deposited in a local bank account. This capital is then subdivided into shares by the OOD, and the decision of the OOD is included in the decision made by the general meeting of shareholders.
There is also a need for the newly registered company to maintain a local address that will be registered. In Bulgaria, an LLC may use a virtual office service instead of the traditional pattern.
Steps for company registration
The procedure for registration of business entities in Bulgaria is straightforward and they go as follows:
Name availability
Check to see if the company name you want is already taken, and if it isn’t, make a reservation for it on the website of the Bulgarian Commercial Register, where it may also be validated.
Representative
Appoint a representative agent for the business
Capital deposit
Deposit of the capital with at least 2 BGN in the company’s bank account
Documents
All documents needed should be prepared for the company’s incorporation and filed with the company register.
To register a business in Bulgaria, one of the needed documents has to be signed in front of a notary, and the Commercial Register also requires a notarized specimen of the founder’s signature. At this point, payment for registration is also required.
The required documentation needed for the registration of a limited liability company in Bulgaria includes:
- Registration form at the commercial register
- Article of incorporation, General meeting of shareholders documents
- Notarized signature specimen and written consent by the company representative
- Bank teller receipt as a statement for deposited minimum capital
- Company name certificate
- Copies of LLC owners’ IDs
