In recent years registration of Bulgarian Companies is becoming more attractive to foreign investors. This is due to the favorable business climate in the country.

Can all foreign citizens register Bulgarian Companies?

All foreign nationals can register their Bulgarian Companies. There is a special feature of the procedure and it is something that is often confused. during the registration process is that the foreign national’s personal data should also be written in Cyrillic.

Should the owner live or reside in Bulgaria?

A foreign investor intended to register Bulgarian companies is not required to live or reside in the country. However, the presence in Bulgaria at the time of registration is desirable. This makes the procedure easier because the foreign citizen is often the manager of the company. As such, he should declare his consent to perform this activity before Bulgarian notaries. Abroad, the services of the nearest Bulgarian diplomatic representation (embassy or consulate) can be used. Also, the presence in the country is also advisable for paying the capital of the company to abank account opened in a local bank.

However, this can easily be resolved. A letter of attorney enabling a trusted law firm to represent the client before the authorities.

What documents are necessary for registration of EOOD, LTD by an EU citizen?

The necessary documents are identical to those required by a Bulgarian citizen who registers a company. Personal ID card is enough.

What documents are necessary for registration of EOOD, LTD by a non-EU citizen?

When a company is made by a foreigner, a passport or ID card is sufficient. The data from it is necessary for the company registration documents. The documents are drafted in Bulgarian and licensed translations are made in the respective mother language of the foreign persons. The documents are identical to those prepared by a Bulgarian citizen who registers a company.

All paperwork is done by professional lawyers. They offer their clients a full range of company registration services and act in their favor saving time and efforts.

Does every change require to register a company in Bulgaria once again?

No, it would be terrifying if it does! The only winner of such measure would be the pen-pushing in an expense of the business itself. Instead of going to register a company in Bulgaria all over again. You or your representative only have to submit the changes in the Trade register. Bureaucracy is still involved in the process but in bearable proportions.

One week is the term to submit the new information to the state’s agency. This is regarding some of the changes decided by the manager or the governing body of the entity. Renaming the company or moving its headquarters to some other place. The adjustments are to be submitted. Increase or subtraction of the capital is also that type of data required by the Trade register. A company in Bulgaria must notify the administration about. Adding new partners to a Limited Liability Company, replacing the manager or transferring shares are to be reported as well.

Transformation of a business entity from one type to another is a more complex process and in many cases, it requires to register a company in Bulgaria once again.

There are several ways allowed by the law when you want to change OOD (Limited Liability Company) to AD (Joint-Stock Company) for example. It depends on the size of the firm, on the number of firms involved in the course, would it be a merger of two or more companies or a split up of a big company breaking to smaller divisions. These changes must be approved by court. Something very difficult to do without the help of professionals.

At BulgarianLaw.co we have experts to support you every step of the way.

Bulgarian Company Formation

А new business company formation in Bulgaria does not take more than two work weeks. The minimal required start-up capital is 1€ or BGN 2. The major varieties of companies that can be formed and registered in Bulgaria are as follows:

• Limited Liability Company (OOD, EOOD) (with one or several owners of the capital);
• Sole trader;
• Joint-stock company (AD or SAD) (with one or several owners of the capital).
There are several good reasons for a Company Formation in Bulgaria
• Fisrt of all, with 10% corporate tax, Bulgaria is the country with the lowest rates in the EU.
• Together with the formation of а company, there is а possibility to create accounts in the same jurisdiction so that the company and the account are available in the same country.
• The European VAT number can be obtained when creating the company, which is often impossible in many other European countries such as UK and Malta.
• A stable tax system, which has remained unchanged for 10 years, and the government’s intention to keep it long-term in the future.
• It is easy and quick to establish а business entity in Bulgaria. No residence permit is required for а company formation.
• Low cost of creating and maintaining the company, low wage costs for local employees.
Registration in the Commercial Register of Bulgaria is a requirement for each business company formed in the country. Submittion of its annual accounts and annual tax returns is also required. The overall procedure of Bulgarian company formation includes several mandatory steps. They are as follows:
• Choosing the most appropriate form of the company. Large business entities usually use the Joint-stock company form, while small or medium companies prefer Limited Liability Company form.
• Getting the complete set of documents that need to be printed, signed and authenticated before your company is formed.
• Registration of your company using your own address for registered office and appointment of your own employees as Managing Director (sole owner) and / or owners of the capital;
• Payment of state fees for company registration;
A trustworthy Bulgarian Law firm can perform all these steps for you and thus save your money and efforts.

Conditions of incorporation Bulgaria offers – safe or risky for investors?

“Stability” – a term circulating around so much that is has been worn out of its original meaning. Representing the status-quo which is perceived by one part of the society being the firm foundation of a gradual growth and by another as the main brake on the real development and prosperity. One important question is what degree of safety regarding the conditions of incorporation Bulgaria offers to investors and businessmen.

For two decades the financial system is secured by the Currency board arrangement.

Bulgarian Lev has been tied subsequently to the German mark and afterward to the Euro. So there are no sharp bounces and plunges, the exchange rate is stable and so that permanent condition saves the country from hyperinflation – like the one Bulgaria has been devastated in mid 90’s before the monetary authority being introduced. This financial status-quo protects makes the field of incorporation Bulgaria wields more protected.

A constant condition in the last decade happens to be also the flat tax rate with one of lowest levels in Europe. Such system was introduced to attract more businessmen and companies from outside. Anyway, the flat taxation has been attacked by opponents of the “one rate for everybody” and supporters of the progressive tax system. And the official statistics report about a substantial plunge of the direct foreign investments which dropped by 55 percent in the last year. So low and flat tax is no longer a magnet for investors from the outside.

And even if the state tries to liberate the regime of incorporation Bulgaria still can loose the grip of bureaucracy and corruption. In some branches, regulations are hard to understand or to meet the requirements but leaning on the advice of people who know the game makes it easier. BulgarianLaw.co offers such support to anyone who continues to see the country as a land of opportunities for investment and business.

Bulgarian incorporation step by step

Better avoid thinking of jumping above the river thinking you might reach to the other bank 50 meters away – you wouldn’t make it. Man has created bridges for that reason so the river could be crossed step by step. The rules of Bulgarian incorporation also require the process of company formation to be executed by performing certain steps. Everyone can find what is necessary to be performed. Many people with no legal education are able to manage all the stages properly.

And many are those who make errors trying to conduct the whole going on simply because of missing or underestimating some of the mandatory stages of required actions. It’s not because Bulgarian incorporation represents some sort of secret knowledge available only to a few persons – no, it’s all there, you can find it anywhere on the web.

Name your company, choose the type of the entity, share instalment if speaking of Limited Liability Company for example, compose a Founding act of owners, fill the required data in several standard applications, place a manager – could be the owner himself or one of the owners, pay the state fee and wait to be approved. That’s it in a nutshell.

Sounds plain and pretty straightforward, right? Definitely not rocket science but often inexperienced person or one who is put on too much pressure could execute some step of the way wrongly. So then the registration could be cancelled, the papers have to be corrected until it’s all neat and clean. And all the waiting is frustrating especially for those who wants to start own business sooner rather than later. At www.BulgarianLaw.co we have experts in the field of Bulgarian incorporation who would never miss a step of the process. If you are about to form up a company, call us – the price is definitely not high for the time and nerves you save.

Can I register a company in Bulgaria by myself?

A question that has been asked quite frequently. Of course, you can, everyone is free to do it by own means. The law does not oblige to employ any kind of official mediator in the process of the formation of a new firm. So, yes, you are allowed to register a company in Bulgaria without any help or inter-mediation? But can you?

Not that the whole mechanism is so complicated – hey, it’s not quantum physics. The procedure actually has been made easier to follow in recent years and many of the information to the state’s agency could be applied online. Being well prepared or experienced in such matter might really make you think to go on straight ahead and register a company in Bulgaria with no support. If you’re not aware of laws and applications, you could find plenty of information about the process on the Internet.

“Are there any risks if I initiate and make the formation of a business entity alone?”

There are – the main bugs of the business anyway. Losing money and wasting time. Not too much regarding both but still frustrating. Errors in the paperwork would burn the state fee for registration – in this say goodbye to a sum approximately between fifty and two hundred Euro. The term for the firm to be approved to go is doubled at best – you might wait a fortnight instead of one week for example. The price paid for a small mistake.

One rather unlikely to be made if you turn to experts in the field. We have such professionals at BulgarianLaw.co. Inexperienced start-uppers often choose to save the money for the service of that kind and later realise that more funds have been lost due to repeated attempts to register a company in Bulgaria. Being wise from the start is not easy but you can always ask.

How easy is to set up a company in Bulgaria

Rather easy, actually, but only for those who know how to manage such process the right way. Going through that scenario previously might have made you aware of steps that are inevitable in the strict process of laying the foundation of some new business venture. But previous experience might convince you, even more, to entrust such an important task to experts – we have the professionals that know all the steps to set up a company in Bulgaria.

If you want to try it by yourself anyway, no one can stop you.

Several milestones stand on your way and they all have to be checked. First of all – choose the proper type of your soon-to-be-found entity. Such choice largely depends on the scale of activity and the funds invested. Small business would rather likely go through the form of a sole proprietorship or a firm of limited liability. If your idea to set up a company in Bulgaria draws a bigger picture, you might choose to go for incorporation of a joint-stock entity. Not sure what is the best form for you? Ask for advice.

Even if the type of the firm is clear matter to you, here comes all the paperwork. Better make no mistakes if you want to pass smoothly through the registration process. But do you know what all those gaps have to be filled with? Especially if you are not local (and if you still read this article, most probably you are not Bulgarian born) you need some support to get documents completed properly. And legal advice is a must too.

Last, but not least – time is valuable and precious and the sooner you succeed to set up a company in Bulgaria, the better for your business. Our experts would go through the whole process without blunders and would help you to lay the foundation of a new firm the fastest possible term.

Bulgarian company formation: Sole trader or Limited Liability?

The legislative frame in Bulgaria broads on wide when it comes to options for creating a new firm. Several variations of business entities are permitted by the law – some convenient for sole traders, others supposed to be employed by corporations of a much bigger size. The goal of this article about Bulgarian company formation is to compare advantages and negatives of the most popular types of small firms – Sole proprietorship vs. Limited Liability Company?

Single players and family enterprises often choose the first kind. Preferred option when it comes for a shopkeeper, a hairdresser, a car mechanic working at his home garage or a freelancer making some additional income. The state fee to register Sole Proprietorship (ET) is much lower than the OOD/EOOD types. The patent tax could be lower if the firm covers one specific segment of activity. Such entity marches through the shortest cut in the process Bulgarian company formation and also it’s easy and fast to be folded if needed.

Flipping on the other side – on the top of cons list is the fact that all personal property of the owner is at stake in case of creditors’ claims. If owing money to the bank or the supplying agent, you might lose your personal car or your family house (or at least your part of it).

Limited Liability Company occurs to be a better option regarding what’s been said in the previous sentence.

Owners are responsible for the debts of the firm up to the amount of their respective share of capital and no personal asset is jeopardised. The tax is always flat and the rate is 10 percent, while for sole traders it could go up to 15 percent. The bar has been set low enough and the initial minimum capital requirement is only 2 BGN (1 Euro), so ET advantage for that matter appears to be insignificant.

But it takes more time to start Limited Liability Company and it takes, even more, time – half a year at best, to fold such entity. Which type is more suitable for you depends on the funds starting the business, the span and specifics of activity. Not sure what kind to choose before going for Bulgarian company formation? Ask us – at BulgarianLaw.co we have the experts who can give you key advice for your future business.

Bulgarian company formation – types of company formations in Bulgaria!

Bulgarian company formation or, in short, the legal form of а company in Bulgaria and its establishment. What is the legal form and what types of companies can be created in the country? On these important questions about each entrepreneur, we will try to answer today.

The registration of а company is preceded or goes along with the choice of the type of your company. In Bulgaria, а wide range оf legal forms can be registered for your company such as ET, OOD or EOOD, KD, SD, AD, and other field of а company or а commercial representation.

Each form defined by the Commercial Code in Bulgaria has its specificity. Here we are talking about taxes, insurance, a set of permits, type of management, shares, payroll registration, VAT registration and bookkeeping. Let me briefly introduce you to the types of traders in Bulgaria and popular legal forms of companies.

Bulgarian company formation according to the laws of the country and their popular species

The Bulgarian Commerce Act regulates much of the business and its activities in the country and beyond. In its view, traders are divided into physical and legal entities. That is, individuals are only companies of Sole Businessmen, while Legal are all municipal and state institutions (Public). Commercial companies are the most common legal form behind which one business is.

They may be limited or collective, may be EOOD or OOD, EAD or AD. Accordingly, the large companies’ associations are formed in the form of holdings or consortia (in which many and various AD, OOD, etc.) are merged.

Bulgarian company formation or formation of а company in the country is made after you are familiar with the specifics of the legal forms in our country and you have chosen the right one for your business. One good advice is to consult a law firm, because the pros and cons of each legal form will explain most clearly! The registration of the company itself is registered in the Commercial Register through the Registry Agency. From there, procedures for receiving BULSTAT, appointment of directors, workers, registration with the NRA and NSSI start. Keeping accounting for business is obligatory!

Bulgarian company formation, as the commercial companies are a union of two or more persons, for the purpose of operating business. Upon registration all TDs submit a Memorandum of Association or a Memorandum of Association. They form company capital from shares or cash. For example, capital in OOD and EOOD is minimal and liability is limited.

Therefore this legal form is preferred by a number of traders in the country! AD are registered in the form of capital associations, with shares. Partners here are responsible for their capital investment. It is possible to re-register а company from one legal form to another! Yet Bulgarian company formation should be considered and counseled with professionals in the field. Start your business today by registering your business properly!

Bulgarian company formation – it is compulsory for any independent activity?

The answer depends on the specific of the activity itself. No trade endeavor in the country as allowed to be exercised without being submitted under the form of some kind of legal entity. Bulgarian company formation is a mandatory condition for many types of independent economic activities but not for every job you do outside of engagement as a worker for some employer.

Submission to the Trade register is inevitable for… you guessed it right – for traders. In the context of the legislation in the country, anyone who sells goods no matter if the goods are self-produced or bought from another place is considered as a trader and is obligated to operate on the behalf of a firm. Subject to the Bulgarian company formation is also anyone who is involved in managing or runs commercial representation, insurance transactions, purchase or construct real estate, banking, and currency transactions, renting cars or hotel rooms, offers warehouse services, etc.

Anyway, there are types of independent activity that don’t fall into the column of traders. A person involved in agriculture could be a farmer or stock breeder but not necessarily a merchant. Craftsmen also can operate as individuals as long as their activity isn’t considered as a form of business enterprise. Even renting a room is allowed if the room is a part of a house or an apartment you live in. Don’t forget the type of liberal profession that is not obliged to go through a Bulgarian company formation. Doctors and dentists are included in this section, the same goes for lawyers and notaries, for engineers and architects, for accountants and artists. If you want to operate independently but not sure if your activity requires submitting information to the Trade register, don’t hesitate to call us – at BulgarianLaw.co we are competent about every kind of occupation.