Bulgaria Company Formation

Bulgaria has emerged as a compelling jurisdiction for Bulgaria company formation, attracting entrepreneurs and investors seeking a stable and business-friendly environment within the European Union. While not a traditional “tax haven,” Bulgaria offers significant advantages for non-residents looking to establish a presence in Europe and optimize their tax liabilities. This guide provides a comprehensive overview of Bulgaria company formation, covering everything from the types of companies available to the registration process and the benefits and drawbacks for non-residents.

Guide to a Prestigious Offshore Jurisdiction

Why Choose Bulgaria for Company Formation?

Bulgaria offers a unique blend of benefits that make it an attractive location for Bulgaria company formation:

• Low Corporate Tax Rate: Bulgaria boasts one of the lowest corporate tax rates in the EU, currently at 10%.
• Strategic Location: Situated at the crossroads of Europe and Asia, Bulgaria provides easy access to both markets.
• EU Membership: As a member of the European Union, companies registered in Bulgaria benefit from free movement of goods, services, capital, and people within the EU.
• Stable Economy: Bulgaria has a relatively stable economy and a growing business environment.
• Skilled Workforce: Bulgaria offers a well-educated and skilled workforce at competitive labor costs.
• Simplified Registration Process: The process of Bulgaria company formation is relatively straightforward and efficient.

Types of Companies for Non-Residents in Bulgaria:

Non-residents can choose from several types of companies for Bulgaria company formation, the most common being:

• Limited Liability Company (OOD): This is the most popular choice for small and medium-sized businesses. It requires a minimum share capital of 2 BGN (approximately €1). Shareholders are liable only to the extent of their contributions to the company’s capital.
• Single-Member Limited Liability Company (EOOD): Similar to an OOD, but with a single shareholder.
• Joint-Stock Company (AD): Suitable for larger businesses and those seeking to raise capital through the stock market. It requires a minimum share capital of 50,000 BGN (approximately €25,000).
• Branch of a Foreign Company: Foreign companies can establish a branch in Bulgaria to conduct business activities.

Advantages of Bulgaria Company Formation for Non-Residents:

• Tax Optimization: The low corporate tax rate allows for significant tax savings.
• Access to the EU Market: A Bulgarian company provides access to the vast EU market.
• Asset Protection: A Bulgarian company can be used to protect assets from liabilities in other jurisdictions.
• Confidentiality: While Bulgaria is not a secrecy jurisdiction, it offers a reasonable level of confidentiality.
• EU VAT Number: A Bulgarian company can obtain an EU VAT number, facilitating cross-border trade within the EU.

Disadvantages of Bulgaria Company Formation for Non-Residents:

• Compliance Requirements: Bulgarian companies are subject to various compliance requirements, including accounting, auditing, and tax reporting.
• Language Barrier: While English is widely spoken in business circles, knowledge of Bulgarian is helpful for navigating the local business environment.
• Bureaucracy: While improving, bureaucracy can still be a challenge in some areas.
• Reputation: While Bulgaria’s reputation is improving, it may still face some scrutiny from tax authorities in other jurisdictions.

What is Required for Bulgaria Company Registration?

The following documents and information are typically required for Bulgaria company formation:

• Company Name: A unique company name that is not already registered.
• Registered Address: A physical address in Bulgaria for the company’s registered office.
• Shareholders: Information about the shareholders, including their names, addresses, and shareholdings.
• Directors: Information about the directors, including their names, addresses, and powers. At least one director must be a resident of the EU/EEA or have a Bulgarian residence permit.
• Memorandum of Association: A document outlining the company’s purpose, activities, and internal regulations.
• Articles of Association: A document outlining the rights and responsibilities of shareholders and directors.
• Specimen Signatures: Specimen signatures of the directors.
• Proof of Share Capital Deposit: Evidence that the minimum share capital has been deposited in a bank account.
• Power of Attorney (if applicable): If you are using a representative to register the company on your behalf.

Procedure for Bulgaria Company Formation:

The Bulgaria company formation process typically involves the following steps:

1. Choosing a Company Name: Verify the availability of your desired company name with the Bulgarian Trade Register.
2. Preparing the Documents: Draft the Memorandum and Articles of Association, and gather all required documents.
3. Opening a Bank Account: Open a temporary bank account in Bulgaria and deposit the minimum share capital.
4. Registering with the Trade Register: Submit the application and required documents to the Bulgarian Trade Register.
5. Obtaining a VAT Number (if applicable): Apply for a VAT number with the Bulgarian tax authorities.
6. Registering with the National Social Security Institute (NSSI): Register the company with the NSSI for social security contributions.
7. Opening a Permanent Bank Account: Once the company is registered, open a permanent bank account.

Timeframe for Bulgaria Company Formation:

The Bulgaria company formation process typically takes between 5 to 10 business days, depending on the complexity of the case and the efficiency of the Trade Register.

How We Can Help You with Our Professionals:

Navigating the complexities of Bulgaria company formation can be challenging, especially for non-residents. Our team of experienced professionals can provide comprehensive assistance throughout the entire process, including:

• Company Name Search and Reservation: We can help you find a unique and available company name.
• Document Preparation: We can draft all necessary documents, including the Memorandum and Articles of Association, ensuring compliance with Bulgarian law.
• Registered Address Services: We can provide a registered address for your company in Bulgaria.
• Bank Account Opening Assistance: We can assist you in opening a bank account in Bulgaria.
• Registration with the Trade Register: We will handle the entire registration process with the Bulgarian Trade Register.
• VAT Registration: We can assist you in obtaining a VAT number.
• Accounting and Tax Services: We can provide ongoing accounting and tax services to ensure compliance with Bulgarian regulations.
• Legal Advice: We can provide legal advice on all aspects of Bulgaria company formation and operation.

By partnering with us, you can streamline the Bulgaria company formation process, avoid potential pitfalls, and ensure that your company is set up for success. We offer tailored solutions to meet your specific needs and help you achieve your business goals in Bulgaria. Contact us today to learn more about how we can assist you with your Bulgaria company formation needs. We are your trusted partner for establishing a successful business presence in Bulgaria.