Setting up a company in Bulgaria – steps and legislation

Setting up a company in Bulgaria follows certain legislative rules. In recent years many foreign investors registered their company in Bulgaria because of profitable and stable economic situation in the country. Business is subject of 10 % corporate tax; the workforce is competent and not so expensive; there are investment opportunities in building construction, IT sector, properties, production and trading. Furthermore, level of personal income taxation is one of the lowest in the world.

A foreign natural or legal entity may establish a company in Bulgaria or could participate in the Bulgarian company as investing in it. The newly establish company, which is fully foreign or it is a Bulgarian with a foreign participation need to be registered in the Commercial Register. This registration requires filling out the application for registration and payment of state fee for company establishment and its registration. These cost-effective legal services provided by law firms are very important. All rights and obligations, which will have the founders of newly created and registered legal entity in the Commercial Register, must be clear to them, before proceeding to the actual registration. Establishment of a company in Bulgaria is determined by the Commercial Law and in particular of the Investment Promotion Law.

It is important to foresee and plan all local taxes, state fees, income tax, company type and capital shares type.

For this purpose, the foreign person must decide whether to invest in a company in Bulgaria as trade branch or sales representative, for example. If the foreigners want to open their own company, which will carry a number of benefits, it must choose the legal form – Joint Stock Company (in Bulgarian is abbreviated “АД”), Limited Liability Company (in Bulgarian “ООД”) and so on. Each legal form of the company has its specifications for incorporation, taxation, taxes and accounting, as well as its governing bodies – selection and compilation. All this preceded the actual registration, after that each company obtains Unified Identification Number (UIN or „ЕИК” in Bulgarian) and should open a company bank account for collecting the capital.

Setting up a company in Bulgaria made by experienced lawyers and jurists with experience in the company registration activity is the best choice. So every foreign investor or Bulgarian company will start or acquire investments profitably.