Everything You Need To Know About Bulgarian Company Formation and Registration

Setting up a business in Bulgaria is a straightforward process that only requires a minimum effort from interested parties. The whole process is fast and easy if you only apply the necessary commercial legislations.

The country has many reasons to attract investors worldwide, and it doesn't discriminate over any foreigners. Such possibilities make Bulgaria a better hub for setting up business compared to other countries.

Company formation in Bulgaria has different ranges, with each type of structure bearing specific requirements for operation. Therefore, it would be best first to understand the different types of companies allowed before registering a company in Bulgaria.

Types of Company Formation in Bulgaria

Here is a detailed look of the different legal structures offered in Bulgaria concerning company formation:

Limited Liability Company

An LLC is the most common form of company formation in Bulgaria. A Limited Liability Company can be established by a single or multiple shareholders. Like LLCs elsewhere, requirements here are that the shareholder (s) have liability limited to the amount of their deposits in the company.

The minimal capital required to start an LLC is only 2GBN/1 EUR, making it the most preferred company formation in Bulgaria.

Before going with this option, here are some of the requirements:

• Company’s name
• Detail of the company’s activities
• A valid address
• Partner (s)
• Initial capital amount
• Manager (s)

Joint Stock Company

The Joint Stock Company formation is broader than the LLC mentioned above. This one has additional legal requirements, and the minimum required capital is also much higher at 50,000 BGN/26, 600 EUR.

One or more persons can establish this form of company, and its minimum nominal value of a share is 1 BGN. Additionally, a JSC may run on one or two-tier management system.

If a company decides to operate with the 1-tier system, they'll need to appoint a board of directors. In comparison, those who choose the 2-tier managing system will require a supervisory body.

General Partnership

This is a company established by two or more people with a plan of managing valid business transactions using a shred registered trade name. The operational trade name has to have one of the shareholder's family name or a trading name of the different companies.

Limited Partnership

The only difference in the formation between a General and Limited Partnership is partnership participation. The latter sees one or more partners solely liable for the company's liabilities, while the other partner is accountable for the amount of contracted contribution.

Company Registration in Bulgaria

After learning about the different types of company formations in Bulgaria, let’s now look at company registration in Bulgaria.

How to register a company in Bulgaria:

1. Name the Company

Coming up with a company’s name should be the first thing to consider. This defines your brand and gives it a unique way of identification.

2. Register a Bank Account

You have to register your company’s bank account as a mandatory requirement by the Bulgarian commercial rules and regulations.

3. Register Company’s Address

Once you are done with equity formalities, the next step is registering a valid Bulgarian address for your company.

4. Register the Company in Bulgaria’s Government Register

The final step of company registration in Bulgaria is registration in the Government's Official Register. This sees you finalize setting up a business in Bulgaria and ready to start with your activities.

Advantages of Setting Up a Business in Bulgaria

The country has the best online banking platforms which make running a business flawless. You will also get to enjoy the spoils of a Euro currency economy, which means a lot to the stability of any business.

You will easily be able to make payments abroad without hindrances. You just need to use the internet or visit a banking hall to make fast and easy money transfers.

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