Company Formation in Bulgaria

Bulgaria is one of the very few countries that allow foreigners to form a Bulgarian company, regardless of the fact whether they have a Bulgarian residency permit or not. It is the strategic location of Bulgaria that allows investors from all parts of the globe to access the entire EU and markets of central and Eastern Europe. More and more investors are gaining interest in creating a company in Bulgaria due to a range of benefits that Bulgaria tends to offer:

• Low operational costs;

• Highly skilled and multi-lingual workforce available within Bulgaria;

• Predictable and a stable economy and government in Bulgaria;

• Lowest operating cost in a European market economy;

• Low set up costs;

• Lowest corporation tax;

• Easy and straight forward banking;

• Very low capitalization requirement;

It is because of the above mentioned benefits and many more that company registration Bulgaria has offered the opportunity to keen investors to register their own company in Bulgaria. However, investors need to understand the most common forms of Bulgarian company registration: Limited Liability Company; Joint Stock Company.

At the time of establishing a company in Bulgaria, shareholder/shareholders need to choose three names for the new company and submit them for approval with the Companies Register. Also, an application wherein, the shareholding structure of the company is clearly stated must be submitted for company creation.

The application for registration has to be submitted with the Company Registration Office. A bank account also needs to be set up (In case, the procedure of registration is completed by a representative of the company, then a notarized power of attorney is also required). Other registration requirements include: company name uniqueness certificate, statement of taxes that have been paid, and the tax for publishing the State Gazette. To create a company in Bulgaria, a registered office address in Bulgaria is required.

Furthermore, an application form needs to be submitted with the National Revenue Agency for VAT registration. Along with the application, there needs to be an agreement of association of the company, a bank account statement, and the registration document signed by the managerial board/founding members.

A visit to Bulgaria may be required depending on the activity of the new company and where the ultimate beneficial owners are based (founders may be local, foreign individuals or legal entities). In order to complete a company creation process successfully, it is advisable not to leave any discrepancy. All the guidelines must be properly understood and fulfilled.