Company Incorporation in Bulgaria

How does Company Incorporation in Bulgaria works? Foreign investors are allowed by Bulgarian Corporate Law to start and register a company in Bulgaria without being present in the country. This can be done using a Bulgarian Law firm as legal vehicle for their business.

Setting up and registering a business entity in Bulgaria offers several benefits, such as:

• Favorable Bulgarian tax system. With its lowest corporate taxation in the EU- 10 percent of the annual net profit, Bulgarian tax system is advantageous to foreign investors. 5 percent dividend tax is due only when real dividend payments are made. VAT is 20 percent but the export and deliveries within the borders of the EU are not VAT-able.
• Reduced financial risk. The Bulgarian national currency rate is pegged to Euro.
• Quick and simple procedure. Only a few days are necessary for registration of a new business company in Bulgaria. Only €1 is necessary to submit at incorporation as minimal starting capital.
• Reduced business costs. Bulgarian labor force is trained and inexpensive. Affordable prices of real estate and low rents are also advantageous to foreign enterpreneurs.

There are several mandatory actions to successfully incorporate a company in Bulgaria.

First, the form of entity must be picked. The most recommended type is a Limited liability company (LLC). Either with a sole proprietor (EOOD) or with more shareholders (OOD). Another form of company incorporation in Bulgaria is the joint stock company, eather with a sole proprietor (EAD) or with more shareholders (AD). This form is more convenient for a largescale business, while LLC is more common for small or medium businesses.

The following step of the company incorporation procedure includes preliminary meeting of the shreholders or of the general partners.

The next step is the acquisition of a notarized statement of consent. Then a notary certified signature specimen of the company manager and a notarized copy of the articles of incorporation.

After that the one must deposite notarized foundation deeds and a bank certificate of the share capital.

Finally, the application form to the National Revenue Agency is filled.

The whole procedure can be done by a Bulgarian law firm within two working weeks saving the client money, effort and personal time.