One of the very popular forms of investment in Bulgaria is the establishment and acquiring the share or interest in a company and transactions linked to the acquisition of property. A Bulgarian Limited Liability Company is able to offer investors especially from foreign origins several advantages opposed to other investors. With the boom of business and property investment in Bulgaria a limited liability company is an excellent way to channel your money in a safe and sure shot investment. The limited liability company in accordance with Bulgarian law will be completely liable for all assets and the members will not run major risk of losing their investment.
Any person local or foreign can form a Bulgarian Limited Liability Company in partnership and will share members interests. Every member will be allowed a share in the company’s assets proportioned to their hold in the capital of the company.
The dividend and voting rights are also divided to the proportion size of the shares.
There are a simple few initial details to know before conducting a Bulgarian Company Formation. The members must come up with a unique name for their Bulgarian Limited Liability Company and enlist a whole set of legal and financial rules for it in accordance with Bulgarian law.
- They must have a local address for the company,
- Have a minimum authorised capital of 2 BGN which equals to 1 Euro
- Have at least 1 director irrespective of nationality.
- They must also be ready to pay a corporate flat tax rate of 10 % on the net profit of the company yearly.
Bulgarian Stock Formation Company
To initiate the process of a joint stock company which is basically a company where the capital can be divided into shares and limit the liability of the shareholders to their participating interest in the capital they hold. A Bulgarian Limited Liability Company can include one or more persons and in case only one person owns all the shares to form a single shareholder joint – stock company. The least amount of money in the company capital is BGN 50,000 and the normal minimum value for each share is BGN 1. If there are larger share values they need to be defined in terms of whole numbers.
The capital of a stock company is equally divided into shares of identical value for each shareholder. All the shares can be traded directly on the stock exchange and they even share securities.
Both registered and bearer shares can be issued however registered shares can be transferred by endorsement and the bearer shares are transferable by delivery to the transferee. In a joint stock company all decisions are made by a majority vote of all the shareholders.
The structure and organisation of a stock company are implemented from and regulated by the Commerce Act of Bulgaria however promoters can associate clauses to the company depending on specifics to their particular needs.
There are several documentation registrations and a registration fee that must be deposited before the company can be fully functional.
A joint stock company in Bulgaria can be incorporated to Bulgarian Limited Liability Company for small and medium businesses.