Start a business in Bulgaria
Since the EU accession Bulgarian market and economy provides many opportunities and incentives to foreign investors. We as a law firm and consultants truly believe that your business has the full potential to become successful and profitable. Our corporate department will provide you with professional and prompt company incorporation services. Following our professional advises will make it easier for you to start a business in Bulgaria.
Competitive advantages of Bulgaria
- Numerous export oriented sectors.
- The lowest operational cost in EU. Rrelatively low taxes, social securities and overall costs.
- Highly skilled and motivated labour force. Very good network of universities and colleges.
- Good foreign language background. Most Bulgarians speak 1-2 foreign languages.
- Low profit tax. Currently it is just 10%.
Good to know when registering company in Bulgaria
The legal status of foreign nationals in Bulgaria is governed by the Constitution of the Republic of Bulgaria, the Foreign Nationals Act (effective 1998), the Regulation on the Application of the Foreign Nationals Act and the Ordinance on the Terms and Procedure for Issuing Visas and Determination of the Visa Regime (effective 2008). Generally, the Bulgarian legislation concerning foreign citizens is in compliance with the EU aquis communautaire related to immigration policy.
The Foreign Nationals Act considers as foreigners all persons who are not citizens of any of the member states of the EU, the European Economic Area and the Swiss Confederation (hereinafter Foreigners).
The Foreign Nationals Act does not apply to the status of the citizens of any of the member states of the EU, the European Economic Area and the Swiss Confederation (hereinafter European citizens). Their legal status in Bulgaria is from the Republic of Bulgaria. As well as by the applicable Acts of the EU legislation governed by the Law on Entry, Residence and Departure of European Union Citizens and Members of Their Families.
5 advantages when starting business in Bulgaria
- Location. Bulgaria can be a strategic hub for doing business in the European Union (EU) due to the geographical positioning. It borders the Black Sea to the East, Romania to the North, Serbia and Macedonia as well as Greece and Turkey. The country positions itself in southeastern Europe, with a territory of 110,994 square km, being the 14th largest European country. Bulgaria is very close to the newly opened largest European airport near Istanbul, Turkey.
- Business opportunities. With a population of over 7 million people, Bulgaria is mainly urbanized. Its commercial and cultural activities focused in Sofia. It is also the largest city of the country. In terms of business sectors, the most important economic fields are: agriculture, power engineering, and heavy industry and they all depend on natural resources. Moreover, Bulgaria is a member of the European Union, NATO and Council of Europe which grants unified EU laws and offers a convenient degree of political and business stability.
- Low business costs. The country has a very attractive tax regime, with one f the lowest corporate income taxes in Europe and also a low personal income tax; the costs related to labor are also competitive when compared to those in Germany, Belgium, France or other countries in the EU.
- Good workforce. The country not only has low labour costs but also a skilled and multilingual workforce. Taxation policy is favourable to foreign investors and companies.
Talk to to our legal experts before making your move in this warm and cosy country. Phone is now. Or drop us a line, and we will respond promptly.
The types of business organizations most often used in Bulgaria are a limited liability company (LTD), a joint stock company (JSC), and a branch
Limited Liability Company
The limited liability company (Ltd.) is a type of business organization most widely used among investors due to the minimum capital requirements and the simplicity of its corporate governance structure. Ltd. can be established by one or more persons, which could be individuals or legal entities.
There is possibility that partners in a Ltd. can be both Bulgarian or foreign citizens.
The minimum share capital required by the Commercial Law for the establishment of a Limited Liability Company is BGN 2, equal to approximately 1 euro .
The management structure of a limited liability company consists of a general meeting of the partners, and one or more managers who manage the company and represent it in relation to third parties. According to the Bulgarian legislation only a natural person can be appointed as the management of a limited liability company. The manager can be a partner as well as a third party and there are no restrictions for a foreign person to be appointed as a manager of a limited liability company.
A joint stock company is another one type of business organization. It is preferred due to the lack of legal restrictions on the transfer of shares, as well as the lack of personal involvement of shareholders in the activities of the company.
A joint stock company may be established by one or more Bulgarian or foreign citizens. The minimum registered capital required for the establishment and operation of the JSC is BGN 50,000, which is approximately 26,000 Euros.
The management structure of a joint stock company consists of a general meeting of shareholders, and a board of directors or a supervisory board and a management board.
The establishment of a branch is one of the alternatives for the implementation of the business operations of a foreign company in Bulgaria. Foreign companies registered abroad, as well as foreign individuals or legal entities, may register a branch in Bulgaria, provided that they are duly established and have the right to carry out activities in accordance with national legislation.
For more information about the procedure of start-up business in Bulgaria, or if you need consultation regarding opening of a company, contact us. You can count on our assistance in every step of establishment of your business here.