Company Registration in Bulgaria

Bulgaria is one of the top-rated countries for starting a business. This country is in the European Union, which offers attractive conditions for companies. Legal entities are opened here for further access to the EU markets and trade without duties and unnecessary bureaucracy. Favorable tax policies and relatively low reporting requirements make this country one of the most popular countries for starting a company.
Nevertheless, it is necessary to know local legislation requirements before opening a company in Bulgaria. This is important because if you do not fulfill them, you will be denied registration and should correct errors, which will waste time. Therefore, you should entrust the work to specialists. The Lawtter Solutions company offers its clients company opening services in Bulgaria on favorable terms and ensures registration in the shortest possible time.

Cost of service

1 890 EUR*

Time required for registration

10-20 days

Income tax

10%

Type of company registration

Without personal visit

*The costs are for informational purposes only. Contact the lawyers at Lawtter Solutions to find out what services are included in the incorporation cost.

Benefits

Advantages of Registering a Company in Bulgaria

Many clients prefer to register a company in Bulgaria for doing business. This solution provides several key benefits:

1

Bulgaria Is an EU Country

Bulgaria is a member of the European Union. Thanks to this, it is possible to conduct activities in the countries of the Eurozone without additional bureaucracy or customs duties, and to open accounts in European banks freely.
2

Political and Economic Stability

Bulgaria is a developed democracy. Its political situation is stable, its economy is fairly developed, and its judicial system is reliable. Therefore, you can conduct business here calmly and without problems.
3

Developed Economy

Bulgaria has a developed economy, which is especially true for IT and tourism. Due to its Black Sea access, maritime trade is also convenient here.
4

Good Reputation

Bulgaria is a jurisdiction with a good reputation. It does not have an offshore image. Therefore, companies from this country can work in any country worldwide, open bank accounts, etc., without issues.
5

There Are no Requirements for Authorized Capital

Bulgaria does not impose any requirements on authorized capital. Therefore, conducting business with authorized capital is possible starting at 1 EUR.

Before registering a company in Bulgaria, you should choose the form of ownership. The most popular options are as follows.

 

Sole Proprietorship

Sole Proprietorship is an attractive form of ownership for business in Bulgaria. There are pretty favorable conditions for entrepreneurs here. However, you will have to work with restrictions for SPs on the maximum annual profit, number of staff, etc.

 

Limited Liability Company

A limited liability company is a form of ownership in which several shareholders may participate. However, these shareholders are liable only within the framework of the authorized capital. Limited liability companies are not liable for personal property or assets. This is a practical option for medium-sized businesses.

 

One-Person Limited Liability Company

This form of ownership corresponds to an LLC, except it can have one shareholder and a manager.

 

Joint-Stock Company

A joint-stock company provides for the possibility of distributing shares among an unlimited number of shareholders. It can be a public company, where securities can be distributed not only among the founders.

 

One-Person Joint-Stock Company

This form of ownership corresponds to a joint-stock company but can be managed by an individual.

To open a business in Bulgaria, you must comply with certain requirements. These concern personnel, reporting, authorized capital, etc.

 

Director

Each company must have at least one director. There are no special requirements here. The director can be a resident of any country. The minimum age is 18. The director cannot be a person on the sanctions list or a citizen of a sanctioned country.

 

Shareholder

Each company must have at least one shareholder. The principle here is the same as with the director. A non-resident can be a company shareholder in Bulgaria; the minimum age is 18. The shareholder must not be a citizen of a sanctioned country or be on a sanctions list.

 

Address

The company must have an address in Bulgaria.

 

Name

The name must be unique. There are also requirements for endings in the title. They are as follows:

  • Limited Liability Company – Ltd, LLC, OOD.
  • One-Person Limited Liability Company – EOOD.
  • Joint-Stock Company – SA, AD, JSC.
  • One-person joint-stock company – EAD.

 

Share Capital

Limited liability companies are not subject to statutory capital requirements. You can start work with a capital of EUR 1. Such requirements exist for companies registered as joint-stock companies. A deposit of at least EUR 25,000 (BGN 50,000) is required.

 

Local Account

There are no requirements to open a local bank account in Bulgaria.

 

Registration Agent

According to Bulgarian law, there are no requirements for the presence of a registration agent.

 

Reporting

All companies are required to prepare and submit reports within the specified period.

Before starting a business in Bulgaria, you need to familiarize yourself with the specifics of taxation. The country has a global principle of taxation: the profit of enterprises is taxed from the worldwide income. The main taxes are described below.

 

Income Tax

Bulgaria offers one of the lowest income tax rates in the EU. It is 10%.

 

VAT

Bulgaria’s value-added tax is 20%. However, there are also preferential rates. For some goods, VAT may be 0%.

 

Tax on Dividends

Bulgaria’s dividend, interest, and royalty tax rates are 5%.

Businesses in Bulgaria must submit reports. They include the annual report, as well as the audit.

 

Annual Report

Companies must file annual financial statements. They are submitted for the reporting calendar year within 6 months after the end of the financial year. The economic period is 12 months from the end of the previous period. Companies must publish their annual financial statements in the Commercial Register.

 

Audit

Financial statements of companies that meet at least 2 of the 3 criteria are subject to audit:

  • net income – BGN 4,000,000+;
  • total assets – BGN 2,000,000+;
  • the number of employees is 50+.

Before registering a company in Bulgaria, you should choose the form of ownership. The most popular options are as follows.

 

Sole Proprietorship

Sole Proprietorship is an attractive form of ownership for business in Bulgaria. There are pretty favorable conditions for entrepreneurs here. However, you will have to work with restrictions for SPs on the maximum annual profit, number of staff, etc.

 

Limited Liability Company

A limited liability company is a form of ownership in which several shareholders may participate. However, these shareholders are liable only within the framework of the authorized capital. Limited liability companies are not liable for personal property or assets. This is a practical option for medium-sized businesses.

 

One-Person Limited Liability Company

This form of ownership corresponds to an LLC, except it can have one shareholder and a manager.

 

Joint-Stock Company

A joint-stock company provides for the possibility of distributing shares among an unlimited number of shareholders. It can be a public company, where securities can be distributed not only among the founders.

 

One-Person Joint-Stock Company

This form of ownership corresponds to a joint-stock company but can be managed by an individual.

To open a business in Bulgaria, you must comply with certain requirements. These concern personnel, reporting, authorized capital, etc.

 

Director

Each company must have at least one director. There are no special requirements here. The director can be a resident of any country. The minimum age is 18. The director cannot be a person on the sanctions list or a citizen of a sanctioned country.

 

Shareholder

Each company must have at least one shareholder. The principle here is the same as with the director. A non-resident can be a company shareholder in Bulgaria; the minimum age is 18. The shareholder must not be a citizen of a sanctioned country or be on a sanctions list.

 

Address

The company must have an address in Bulgaria.

 

Name

The name must be unique. There are also requirements for endings in the title. They are as follows:

  • Limited Liability Company – Ltd, LLC, OOD.
  • One-Person Limited Liability Company – EOOD.
  • Joint-Stock Company – SA, AD, JSC.
  • One-person joint-stock company – EAD.

 

Share Capital

Limited liability companies are not subject to statutory capital requirements. You can start work with a capital of EUR 1. Such requirements exist for companies registered as joint-stock companies. A deposit of at least EUR 25,000 (BGN 50,000) is required.

 

Local Account

There are no requirements to open a local bank account in Bulgaria.

 

Registration Agent

According to Bulgarian law, there are no requirements for the presence of a registration agent.

 

Reporting

All companies are required to prepare and submit reports within the specified period.

Before starting a business in Bulgaria, you need to familiarize yourself with the specifics of taxation. The country has a global principle of taxation: the profit of enterprises is taxed from the worldwide income. The main taxes are described below.

 

Income Tax

Bulgaria offers one of the lowest income tax rates in the EU. It is 10%.

 

VAT

Bulgaria’s value-added tax is 20%. However, there are also preferential rates. For some goods, VAT may be 0%.

 

Tax on Dividends

Bulgaria’s dividend, interest, and royalty tax rates are 5%.

Businesses in Bulgaria must submit reports. They include the annual report, as well as the audit.

 

Annual Report

Companies must file annual financial statements. They are submitted for the reporting calendar year within 6 months after the end of the financial year. The economic period is 12 months from the end of the previous period. Companies must publish their annual financial statements in the Commercial Register.

 

Audit

Financial statements of companies that meet at least 2 of the 3 criteria are subject to audit:

  • net income – BGN 4,000,000+;
  • total assets – BGN 2,000,000+;
  • the number of employees is 50+.

Registration companies

Company Registration Process

The procedure for registering a company in Bulgaria is simple. It consists of 5 stages.

01

Due Diligence and KYC verification

At this stage, you need to provide information about the company's structure, scope of activities, and shareholders.
02

Title check

The name of the legal entity must be unique and verified before carrying out the registration procedure.
03

Registration forms

Registration forms are filled out, and documents required to open a company are prepared.
04

Company registration

Prepared documents and forms are submitted to the Register, where they are reviewed, and a decision is made.
05

Preparation of corporate statutory documents

In case of a positive decision, internal documents for the organization are prepared.

Documents

Documents Required for Registration

The package of documents for individuals who hold the position of director, shareholder, or owner will be as follows.

  • Identification documents. You must submit a copy of your passport or ID.
  • Residence address. You can confirm your residential address using a bank statement, utility bill, etc.