WHY TO SET UP A COMPANY IN BULGARIA

A Bulgarian limited liability company can be incorporated within two weeks, with a minimum of one shareholder and one director, who can be of any nationality and place of residence. Conveniently, the minimum paid up share capital is only €1 (clients will not need to travel to complete Bulgaria business setup).
Bulgaria`s corporate tax rate is a flat 10% on global profits, the second lowest in the EU.
Full corporate tax exemption is available to business setups in high unemployment regions.
Clients will not pay withholding tax on dividends remitted to corporate and individual shareholders residing within the European Economic Area and 68 other countries including India, Singapore, U.K, USA, Luxembourg, Netherlands and Ireland, which have signed treaties with Bulgaria.
Withholding tax on interest payments is low at 5% within the European Area and 10% to all other countries unless reduced by a double-tax treaty.
Bulgaria boasts VAT refund agreements with 10 countries outside of EU.
Tax losses can be carried forward up to 5 years.
Licensed real estate investment trusts are fully tax-exempt.
VAT registration is not mandatory under 25 000€ annual turnover of taxable goods.
Consequently total tax paid by Bulgaria´s companies only represent 27% of their earnings, compared to 41% in OECD countries.
R&D-oriented companies registered in Bulgaria industrial zones benefit from a 2-years tax holiday.
Foreign investments in Bulgaria have preferential access to EU structural funds, available in Bulgaria and Romania.
Under the Renewable and Alternative Energy Sources Act, foreign investment in renewable energy are connected with priority to the electricity grid, otherwise a time-consuming process.
Foreigner investing more than 10 million € in Bulgaria will qualify for Class A investor type and consequently obtain 100% reimbursements of labor costs.

Bulgarian company and market entry — “Full corporate tax exemption is available to business setups in high unemployment regions”

THE INCORPORATION PROCESS IN BULGARIA

The Bulgarian limited liability company, OOD, is a form of business especially established by small and medium sized companies and it is formed by members with the liability limited to their contribution to the company’s capital.

The main documents of a Bulgarian OOD company necessary for registration are the articles of incorporation and the memorandum of association (the last one in case only one shareholder is involved). The company of this type is managed by a director appointed by the general meeting of the shareholders (considered the highest instance in the entity). The name of the company must be unique and followed by the termination “OOD”.

Step 1:
At the beginning of company incorporation in Bulgaria, the entity’s representative must execute the minutes of the constituent meeting of the shareholders or the general meeting of the general partners. After that, it is mandatory to obtain a notary certified statement of consent, the signature specimen of the manager and a certified copy of the articles of incorporation or the partnership agreement. A certificate from a bank stating that at least 70% of the minimum required capital has been paid must be obtained before starting the actual entity registration. The certified statement of consent and signature specimen of the manager must be notarized.

Step 2:
The actual registration process of a company in Bulgaria consists in depositing the notarized foundation deeds, minutes of the meeting of incorporation and the bank certificate stating the share capital. The procedure takes around four working days.

Step 3:
The following step of the company incorporation in Bulgaria consists in filling an application to the National Revenue Agency accompanied by the foundation deed, the bank account document or a document attesting the contributions value, an excerpt from the Commercial Register in order to get the VAT number. This process doesn’t take longer than 12 working days.

The whole process of Bulgarian company incorporation performed by a Bulgarian law firm takes around two working weeks. After the registration, you should hire an accountant.

REQUIREMENTS AND SPECIFICATIONS

Entity type and suffix:	Limited liability company, OOD
Shareholders/Founders:	at least 1 person or legal entity, foreign entities accepted
– Documents	Copy of I.D. document of a founding partner(s)
Directors:	at least 1 natural person, non-resident directors accepted
– Documents	Copy of I.D. document of a person to be registered as a director
Share Capital:	The minimum share capital requirement is 5,000 Bulgarian Leva, (around €2500). You will need to obtain a bank deed confirming that at least 70% of the registered capital has been paid prior to incorporation. The shareholders may be individuals or companies and the minimum nominal share value is 10 Bulgarian Leva per share.
Residency:	An entity generally is considered a resident of Bulgaria if it is registered in Bulgaria.
Corporate tax:	10%
VAT:	Maybe liable to pay a VAT rate of 18%
Annual financial report:	Yes
Registration address:	Yes (in Bulgaria)
A Company bank account:	Start account is required before company registration
Free zone registration:	Available (Bourgas Free zone)

INCORPORATION EXPENSES AND AVAILABLE SERVICES

COMPANY REGISTRATION EXPENSES: from EUR 180 (Government and Notary fees)
Pricing: Expenses may vary depending on entity type, document requirements and type of founders

Establishment of company
Standard M&MA and Minutes of Meeting
Company documents
Apostille
Courier services

ASSISTANCE & CONSULTING BEFORE AND DURING THE INCORPORATION: from EUR 695
Pricing: EUR 99 – 185 /hour depending on tasks (min assignment with Bulgarian company formation is 7 hours)

- Business and tax consultation before incorporation
- Assistance in registration process
- Assistance in start bank account opening

Document legalization and recommendation letters
Business plan and Due Diligence
Bank accounts and payments solution
Insurance and Finance

ADMINISTRATION, LEGAL & ACCOUNTING SERVICES: Optional
Pricing: ask quotation from selected services

Company address, Virtual office services
Custom M&MA
Agreements between founders, partners, directors, contractors and employees
Special business licenses
Nominee directors and Shareholders, technical UBOs
VAT and Tax prepayment
Bookkeeping
Accounting & Payroll
Financial controller
Funding
IP

MIN. TOTAL COSTS:

REGISTRATION FEES:	EUR 180
ASSISTANCE & CONSULTING:	EUR 695
ADMINISTRATION, LEGAL & ACCOUNTING:	Optional
BULGARIAN COMPANY FORMATION FROM:	EUR 875

SEND YOUR DETAILS AND BRIEF FOR QUOTATION!

IS BULGARIA FOR YOU? Please send your contact details to schedule a phone meeting or send a brief information package so we can get back to you with tips and quotation. We normally reply to queries within 3 hours!