Company Formation Bulgaria
Bulgaria is a small country in Europe. It neighbours Romania, Turkey, Greece, Serbia, and Macedonia. The country joined the European Union in 2007 and has seen increased economic growth. Its GDP reached $168 billion in 2018 and is expected to grow by more than 3%. This is greater than the EU average of less than 2%.
Why Register a Company in Bulgaria?
There are several reasons you may want to register a company in Bulgaria:
- Strong neighbouring countries – Bulgaria has relatively strong neighbours that are seeing impressive growth in the past few years.
- EU member states – Bulgaria is an EU member country. This has a benefit in that it enables companies to conduct business internationally without paying border tariffs.
- Low corporate taxes – Bulgaria has a corporate tax rate of 10%. This is the lowest rate in the European Union.
- Low business costs – The country has low business costs like labour and office costs.
- Young and well-educated workforce.
Types of Businesses You Can Register in Bulgaria
There are several types of businesses you can register in Bulgaria. These are:
- Private Limited Liability Company (OOD) – This is a business that is suitable for small and medium enterprises. There is no need for minimum share capital.
- Public Limited liability company (AD) – This is a limited liability company that must be formed by at least two members. The minimum share capital that is required is BGN 50,000. This is equivalent to EUR 25,000.
- Sole proprietorship – This is a business that is suitable for solo entrepreneurs. The entire liability is on the entrepreneur.
- Partnerships – These are companies formed by two or more partners.
Documents Needed to Register a Company in Bulgaria
There are a number of documents that are required to register a company in Bulgaria. The most important ones are:
- Identification card.
- Resident documents. This is for foreigners who are registering their companies in Bulgaria.
- Memorandum of association – These are prepared by attorneys.
- Education certificates – These are needed for certain professions. For example, you need to have a law education to start a law firm.
- Intellectual property documents.
FAQs on Company Registration in Bulgaria
How easy is it to register a company in Bulgaria?
Bulgaria is trying to attract many foreign companies. As a result, the country has been investing heavily to become a favourite destination for investors. Therefore, it has simplified the process of starting a company. Indeed, it takes less than two weeks to register a company in the country.
What is the corporate tax in Bulgaria?
The corporate tax in Bulgaria is 10%. There is also an addition tax of 20%.
Do I need to be physically present to register a company in Bulgaria?
No. You can use a lawyer or a consultant to do the work for you. You will be needed to sign documents.
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