When is the right time to open a bank account in Bulgaria?

When is the right time to open a bank account in Bulgaria? With increasingly greater popularity of the Bulgarian bank system and the advantages it offers this is a question that is often asked.
Therefore, in this article we would like to elaborate on when will be the right time for you to open an international bank account.

The most vital stage for any business is its first year.

This is why as a business owner you should do everything you can to retain as much of the earnings and invest them back into the company. This will ensure that you are growing at faster pace than your competitors.
So we now know when is the best time to start this very important move.

The Second question is why should you be interested in opening an account in Bulgaria?

A stable economic environment with a steadily growing GDP is one of the main factors. This should signal investors that their operating income and turnover will be safe.

Furthermore, a stress test by the European Central Bank was conducted and showed that all Bulgarian banks were highly liquid.
As per European Law and regulations all bank deposits up to 100 000 EUR are 100 percent guaranteed by the government.
Because of the low level of the income and corporate tax in Bulgaria (only 10%) it provides individuals and companies the chance to minimize their tax expense by re-directing their international incomes in the Bulgarian Bank Account.

By using the services of a professional law firm you can open an international Bank Account in Bulgaria without ever having to visit the country.

Does this sound like an option that you would like to know more about? Contact us and let us help you make the best decision for your business.

Advantages and Disadvantages of Bulgarian Bank Account

What are the advantages and disadvantages of Bulgarian Bank Account? This is a question that we get asked a lot on our website and offices.

In this article we would like to briefly go over the main points that should be interesting to investors business owners.

The first and foremost advantage is the fact that the Bulgarian banking system is stable and secure.

According to the latest stress test conducted in Bulgaria all Bulgarian banks performed without any issues and proved to be highly liquid. Furthermore, this allows them to sustain heavy withdrawal from their depositors without any issues.

Having a Bulgarian bank account mean that you gain access to the European bank system without ever having to visit Bulgaria personally. This is achieved by employing the services of professional legal firms with years of experience in the field.

It also means that your interest incomes are tax free.

If this is additionally combined with a Bulgarian company, you can minimize your tax expenses by redirecting your international incomes into your Bulgarian Bank Account.

Now that we have covered what the main advantages of having a bank account in Bulgaria are we should also take a look at the main disadvantages.

The whole process can be completed online without  ever visiting the country. However, for some not having the convenience of a local branch is considered a disadvantage.

The biggest disadvantage is the fact that you need to have a trustworthy partner in this endeavor. Therefore, choosing the right company to assist you in this is essential.

When choosing this important move for your business pick a partner that has been in the legal and financial field for at least 10 years.

Here at bulgarianlaw.co we have 20 years of experience and a dedicated team of lawyers, accountants, solicitors and economists.

Lets us help you make the best choice for your business. Contact us.

Set up company in Bulgaria – peculiarities of a company legislation in the country

Set up company in Bulgaria or set up a company within the country to get you dividends and work. Before starting a company activity in our country and forming a company, every businessman in the country or abroad – faces the legislation. In particular, with the texts of the Commercial Act regulating the establishment of а company, its registration, fees, accounting, and so on. Some particular company structures in the country are affiliated companies, subsidiaries or mixed companies. They, as a growing popularity in Bulgaria, have business combinations preferred by the business. Let’s see what this is about!

Set up а company in Bulgaria – company law and business combinations

Business combinations have become necessary in view of the high dynamics in the business environment. Every day, companies in Bulgaria and around the world are merging, acquiring, and consolidating. This is good for a thoughtful business following a certain global line of development. That is why we will look at the peculiarities of the subsidiaries in Bulgaria, the acquisition of smaller companies, the association and the mixing at all. When you already have a registered company in the country, under the rules of the Commercial Code, it works, and you do the accounting, but you want to grow … We are talking about acquiring another company or companies! This is also a part of Set up a company in Bulgaria, but in further development.

By law, the acquired firm remains an independent legal entity, but the parent company most often has a capital investment in it of different sizes! In the management of such companies there are three possibilities – they are on a subsidiary basis, they are associated or mixed. This largely determines the accounting. For example, the established subsidiaries in Bulgaria are under the control of the main company that has acquired them. They have the same accountability and accounting policy. Set up а company in Bulgaria with the character of successive affiliated companies are neither subsidiaries nor joint ventures! Here the parent company has an influence on decision-making, but does not define the policies of the acquired company. Accounting is done using the equity method.

For joint ventures, when you set up a company in Bulgaria, a joint venture is immediately launched, which is accordingly subject to joint control. The legal control of the investor is governed by a contract and most often it is a jointly controlled company. Accountability is through either a proportional consolidation or the equity method. Set up а company in Bulgaria such as the business combinations are required to disclose Consolidated Financial Statements, where their participation in each company is mentioned. These are a small part of the IT features and business accounting, so register a company today with professional help to earn from it!

When is the best time start up a company in Bulgaria

Start up company in Bulgaria – what is the proper moment to start it? Now – they say – right now, today, don’t wait until tomorrow or next week or next month or… Well, hold on, doesn’t that sound ridiculous? Any idea no matter how brilliant is not enough reason to jump off the cliff immediately. A hunch even strong and in the right direction requires more arguments than “I woke up this morning and…”. And yes, sometimes the story of that kind turns to a real fairy tale but much more are the examples of the failure of ill-prepared enterprises.

Actually that whole “Do it now” paradigm is not at all stripped of sense, you just have to get it right. Yes, start working on it now; yes, begin to build your ideas one on top of the other like blocks of a new house; yes, trust the hunch but don’t put all your bets on it. Not the easiest answer to tell you when is the best time to start up a company in Bulgaria but an answer such as “When you’re ready to dive in and turn back to the surface” brings some part of the truth.

Well, there are simple examples of rather inappropriate timing.

Like opening a bar at the seashore in October or investing whole your savings in a small grocery store knowing that in three months there will be big chain supermarket across the street. “Nobody makes rookie mistakes like that”, you say. They do, believe us.

The time is right to settle a firm when there is enough projection from the moment of registration to the real action. Thinking of two months – better add two more to be sure. Why don’t you turn to experts for advice – at BulgarianLaw.co we definitely have the people who can give you priceless support in terms of start up a company in Bulgaria.

Should you be interested in Incorporation Bulgaria?

Should you be interested in Incorporation Bulgaria? This is a question that we get very often in the requests from our website bulgarialaw.co.

This is why in this article we would like to share our experience as to why incorporation companies Bulgaria is going to be a profitable and successful move for your business. We draw on 20 years of experience in the field.

Research shows that in the countries from central and western Europe, corporate tax can go as high as 60%.

On the contrary in Bulgaria there is a flat corporate tax of 10%, and a personal tax of 10%.

Furthermore, these are funds that you can directly put back into your business. Thus bringing you one step ahead of your direct competitors. Making you meet your clients needs better and faster.

The second question that comes to mind is how can you do this? Especially if you are starting your business now. Perhaps you have only been an employee and this is complete new field for you. Thanks to modern innovation in internet security it is now possible to complete the whole process online.

This means that you can register a company in Bulgaria without ever visiting the country.

This way you will be able to take advantage of the best tax jurisdiction in Europe. Additionally, as per Bulgarian law you will also receive a bank account. This gives you access to the European financial system.

Only you have access to your bank account and can manage it remotely without limitations.

Does this sound like something you are interested it? Let us help you make your business better. Our team of lawyers, accountants, barristers and economist will provide you with the best solution. The first consultation is always free of charge.

To register company in Bulgaria

Register company in Bulgaria – what is the point to put this effort?

To form and register a business entity in Bulgaria can bring several benefits to the investors. Primarily, Bulgarian legislation system offers the freedom to easy and fast set up а company through a simplified procedure without unnecessary formalities. The country’s tax system with ots 10 percent flat income tax is also favorable to foreign investors. Low labor costs make it easy to recruit highly-qualified staff. It is extremely quick, cheap, and easy to form and register а company in Bulgaria. Maximum two weeks are needed for the registration procedure and it costs less than BGN 300 or EU 150. Company registration is among the cheapest in EU. Phisical presence in the country for the procedure is not necessary, which fascilitates foreign investors.

Who can set up and register company in Bulgaria?

Any adult citizen, regardless of his/her citizenship, aged 18 can form and register company in Bulgaria.

What type of company is recommended to form and register in Bulgaria?

The choice of the company form depends on the business scale. OOD, which refers to Limited Liability companies is the most popular form in Bulgaria. This form is most commonly used by small and medium business, while а Joint-stock company form is preferred by larger businesses.

What are the mandatory steps to form and register а company in Bulgaria?

The registration procedure is simple and includes:

Preparation of required papers and their submission to the Bulgarian Commercial register.
Payment of required fees and taxes.
Opening an escrow bank account with the required starting capital of Eu1.
Although the registration procedure is simple, it has a strictly formal character, which poses the risk of rejection by the Register in case of any mistake or omission. This means to invest additional time and money. That is why hiring professional Law firm for the registration procedure is highly recommended. The team is responsible for dealing with all procedures in Bulgaria, including the transfer of capital and the submission of all necessary documents.

Is it a good idea to open a company in Bulgaria?

Is it a good idea to open a company in Bulgaria ? This is a question that is coming up more and more often because of the countries booming economic and favorable tax laws.

We will go in greater detail as to why is it one of the best business decisions currently.

First off we should look at the macroeconomic picture.

The GDP of Bulgaria has been growing with a steady pace since 2012.

This makes it a favorable destination for long term investments. Latest research shows that there is a lot of available skilled labor for employment.
Furthermore because of the costs these are available for a much lower rates than any other countries in Western Europe.

The Second and foremost reason is the taxation system. With a corporate Tax of flat 10% and a personal tax of 10% this makes the country a tax haven within the European system. Something that should be overlooked.
Additionally, as part of the European System Bulgarian companies gain access to a bank account that can be operated remotely and as such can freely transfer fund with very low fees within the EU.

The next question that arises is:

Can all this be done remotely?

And the answer is yes. By using the services of a professional and established firms the whole process can be done remotely. So you can have a company incorporated in Bulgaria with a bank account set up in less than a week.

Does this sound like something you might be interested in?
Let us help you make the best decision for your business. At Bulgarialaw we have 20 years of experience in the field and a team of lawyers, accountants and economists that can assist you in every step of the way.

Notes on what Joint-Stock incorporation Bulgaria requires

Incorporation Bulgaria – what are the first steps and preconditions? Though it might represent a certain age of the human history in English speech. .In Bulgaria the AD abbreviation stands for entirely different meaning. “Anno Domini” in the West, big business in the center of the Balkans behind those two letters. The short form of that type of incorporation Bulgaria employs for a Joint-Stock Company. All leading firms in the country in means of annual turnover, scale of activity, profit, work labor force amount are registered that way.

Since you read such article, you probably know it’s about a corporation of stockholders. One that cannot be formed without a constituent assembly. Participants in such meeting could be both individuals and representatives of legal entities. All have to agree about the size of each share, but that’s not the sole task of the assembly. They create and vote for the article of association – it’s like the constitution of incorporation Bulgaria requires for every AD in the land. Managing board needs to be elected too. Temporary certificates are issued to all shareholders and later they receive the actual shares after the Joint-Stock company is formed and begin to operate.

State’s law has the mark of 50 thousand leva (little above 25 thousand Euro) as a minimum initial capital threshold to register a firm of that type. And there is an option for such incorporation Bulgaria allows – the initial capital has to be set but only a part of it (at least a quarter of the sum) is mandatory to be deposited from the start, it’s not a problem for the rest to be added soon after that. It doesn’t have to be cash too – so-called non-monetary contribution also has a value.

As the headline tells you, this article draws just a few strokes of picture – a Joint-Stock company formation is a complex process. Founders often need support for that type of incorporation Bulgaria allows as a legal form and at BulgarianLaw.co we are able to provide such crucial help.

Company Incorporation Bulgaria – the joint venture and its incorporation

Company Incorporation Bulgaria are specific joint ventures that fall under the category of commercial companies and are legal entities, ie companies. In general, a joint venture has at least two countries that invest in creating a common business. The control of this joint business activity is common as well as responsibilities. The economic activity of joint ventures is governed by regulatory arrangements between investors. Most often, Incorporation Bulgaria appears in the form of jointly controlled companies. Their legal form may be OOD, AD, BD or otherwise according to the circumstances of the partners. An interesting part of the joint ventures in Bulgaria are mergers and business combinations. They have specific accounting and acquisition methods. Let’s look at the topic a bit.

Company Incorporation Bulgaria – Establishment of a mixed type of business, merger or acquisition!

Joint Stock Companies or AD are typical capital companies. They may be a joint venture at a later stage, but at the beginning the company’s registration itself follows the standard steps described in the Commerce Act. Thus the real minimum capital to register AD amounts to 50 000 leva. Copartners own share capital. There is board of directors, and each partner’s liability is limited to his / her placement in the company. Ltd. is a similar capital structure, but the initial capital here is much smaller (2 leva) and the liability is again limited. Incorporation Bulgaria as AD and OOD can merge and make business combinations.

In general, in Bulgaria, most business combinations are made by using the acquisition method. That is, they are purchased, which is different in some ways from the subsidiaries and associated companies. In the case of merging business interests, one can talk about a merger of companies. Acquisition, by purchase, is accounted for at purchase price or fair value on the day of exchange. Incorporation Bulgaria, which are a group of interests, can be two or more joint-stock companies. They are united in their control of assets and business, and none of the companies are considered to be the acquirer of the other. Accounting, however, things for this type of combination are complex, so the use of professionals is imperative.

Company Incorporation Bulgaria has parent companies or companies. Companies can also have equal rights. Often, mother companies have the right to transfer assets or capital from one subsidiary to another in order to have tax benefits, economic benefits or to increase production. These changes are not business combinations, they are functional changes in the group of the joint venture. The creation of Incorporation Bulgaria has its own pros and cons, but you should always consult with professional lawyers and accountants!

How to open company in Bulgaria. How do companies set up and register in Bulgaria?

How to open company in Bulgaria so you can win. In fact, how is а company formed, established & registered in Bulgaria? Things are fairly straightforward & simple, but at the same time they must be well thought out and accurate. Although a company registration takes a short amount of time, it can become a scary headache if you do not bet on a large professional law and accounting office. So start your business clean by doing the best at the start of your registration! Here’s how to register or form a company in the country.

To open company in Bulgaria – how to do it?

First of all, it is important to be informed that there are two types of traders in the country. One is a natural person, the other is a legal entity. Basically the sole traders are natural persons. All other traders under the Commercial Code are legal entities. Here we are talking about state-owned companies as well as private sector companies. Most of the craftsmen, the persons engaged in agriculture and the liberal professions are not subject to registration. They are not traders, according to the law. The registration of the company in Bulgaria is done by submitting documents to the local offices of the Registry Agency. Specifically in the Commercial Register. Registration is public and anyone can see the details of a newly registered business.

Register company in Bulgaria is accompanied by a choice of name for the company itself.  It always starts with the legal abbreviation of its form. That is to say AD,  SD or other forms of company. The registration describes the type of activity or activities of the company itself, its managers, capital investors, distribution and others. Sole proprietors, unlike Commercial Enterprises, contain the names of the owner in their name. In addition, hе is responsible for the company’s business with his own property. While for the commercial companies the responsibility stops to that of the capital investment! The formation of a company and its registration are directly governed not only by the Commercial Act, but also by the Accountancy Act.

Before you open а company in the country it is good to consult with law professionals and accountants! In this way, you will choose the right person for your company. It is in accordance with the:

• responsibility,
• profit distribution,
• management,
• taxes,
• financing, and other aspects of the legal form.

You will also be informed about the fees and possible benefits of your upcoming business. Start your business today, open company in Bulgaria and earn!