Steps to Start a Company in Bulgaria
1 . Choose a Business Structure:
2 . Reserve Your Company Name:
Check and reserve a unique name through the Bulgarian Commercial Register.
3 . Prepare Incorporation Documents:
Includes Articles of Association, shareholder details, and proof of registered address.
4 . Open a Business Bank Account:
Deposit the minimum share capital (usually BGN 2 for an OOD).
5 . Register with the Commercial Register:
File incorporation documents with Bulgaria's Commercial Register to obtain a company registration number.
6 . Tax Registration:
Register for corporate tax and VAT with the National Revenue Agency.
7 . Apply for Permits or Licenses (if required):
Specific industries like construction, healthcare, or finance require additional permits.
- Limited Liability Company (OOD): Most common, suitable for startups and SMEs.
- Sole Proprietor (ET): Ideal for freelancers or small businesses.
- Joint-Stock Company (AD): Designed for larger businesses and public offerings.
- Branch or Representative Office: For foreign companies expanding into Bulgaria.
2 . Reserve Your Company Name:
Check and reserve a unique name through the Bulgarian Commercial Register.
3 . Prepare Incorporation Documents:
Includes Articles of Association, shareholder details, and proof of registered address.
4 . Open a Business Bank Account:
Deposit the minimum share capital (usually BGN 2 for an OOD).
5 . Register with the Commercial Register:
File incorporation documents with Bulgaria's Commercial Register to obtain a company registration number.
6 . Tax Registration:
Register for corporate tax and VAT with the National Revenue Agency.
7 . Apply for Permits or Licenses (if required):
Specific industries like construction, healthcare, or finance require additional permits.
Why Bulgaria’s Tax System is Attractive
1 . Corporate Tax:
2 . Personal Income Tax:
Flat rate of 10% for individuals.
3 . VAT (Value Added Tax):
4 . No Withholding Tax on Dividends:
Dividends distributed to EU or EEA residents are exempt from withholding tax.
5 . Double Taxation Treaties:
Bulgaria has agreements with over 70 countries to reduce tax burdens for cross-border businesses.
- Flat rate of 10%, among the lowest in Europe.
- Exemptions for companies operating in certain economically disadvantaged regions.
2 . Personal Income Tax:
Flat rate of 10% for individuals.
3 . VAT (Value Added Tax):
- Standard rate is 20%, with a reduced rate of 9% for certain goods and services.
- VAT registration is mandatory for businesses with turnover exceeding BGN 100,000 annually.
4 . No Withholding Tax on Dividends:
Dividends distributed to EU or EEA residents are exempt from withholding tax.
5 . Double Taxation Treaties:
Bulgaria has agreements with over 70 countries to reduce tax burdens for cross-border businesses.
Advantages of Doing Business in Bulgaria
- Cost-Effective Operations: Enjoy some of the lowest operational costs in Europe.
- EU Market Access: Seamless trade and movement within the EU.
- Modern Infrastructure: Growing transport and communication networks.
- Government Support for Investment: Incentives in industries like manufacturing, IT, and renewable energy.
Government Incentives for Businesses
- Corporate Tax Exemptions: Available in underdeveloped regions of Bulgaria.
- EU Funding Programs: Access to grants and funding for innovation, research, and development.
- Free Economic Zones: Tax-free zones offering benefits for manufacturing and logistics companies.
- R&D Incentives: Tax deductions for research-related expenses.
Post-Registration Obligations
- Annual Filings: Submit confirmation statements and annual accounts to Companies House.
- Tax Returns: File with HMRC and pay any corporate tax due.
- Accounting Standards: Maintain proper records in line with UK GAAP or IFRS.
- Payroll Compliance: Register for PAYE if hiring employees and follow UK employment laws.
Post-Registration Obligations
- Annual Reports: File annual financial statements and corporate tax returns.
- VAT Compliance: Submit monthly or quarterly VAT declarations.
- Payroll and Employment Compliance: Ensure adherence to Bulgarian labor laws, including social security contributions.
- Accounting Standards: Maintain records in compliance with International Financial Reporting Standards (IFRS).
Why Choose Us to Help You Start Your Company in Bulgaria?
- Expert Local Support: In-depth knowledge of Bulgarian business laws and practices.
- Fast & Reliable Setup: Quick registration and documentation services.
- Tailored Guidance: Advice customized to your business needs and goals.
- Ongoing Assistance: From incorporation to operational compliance, we’re here to support you.
Frequently Asked Questions
1 . How long does it take to register a company in Bulgaria?
Typically, the process takes 3–7 business days.
2 . Do I need to visit Bulgaria to incorporate a company?
No, a local representative or power of attorney can handle the process on your behalf.
3 . What is the minimum share capital required for an OOD?
The minimum share capital is BGN 2 (approximately €1).
Typically, the process takes 3–7 business days.
2 . Do I need to visit Bulgaria to incorporate a company?
No, a local representative or power of attorney can handle the process on your behalf.
3 . What is the minimum share capital required for an OOD?
The minimum share capital is BGN 2 (approximately €1).