Bulgaria, and especially its capital Sofia, is among the tempting destinations for the big companies that want to outsource their business in order to reduce the expenses and increase their profit. The process of outsourcing is not new and the general idea is for the big companies to move to emerging countries with stable economy. Since Bulgaria has very solid economy factors, the country faces an increased market share of the outsourcing companies. All of these outsourcing companies are focused on cost efficiency and the minimum risk, aiming at knowledgeable, highly-educated people who can work for them for a salary much lower than they could expect from the workers in the well developed economies. It seems that people living in the capital Sofia, as well as those in the other big cities of the country answer to all these criteria.
Companies that want to outsource their business to Bulgaria are pleased to find out that here they can count on professional services such as fast company formation, audit and accounting when needed, tax advises, payroll administrations, as well as human resources, regular office services, virtual offices, etc. By using these services in Sofia and other big cities of the country, big companies get increased flexibility in making business, planning strategies and arranging the costs. They also get the chance to make changes in the capacity of work. Thanks to that flexibility, these companies are ready to respond to the main changes on the market.
Of course, there is much more to the outsourcing process than that. Most of the companies, both small and big enterprises, move their business practices to Bulgaria as they have fewer expenses for people and equipment. People in Bulgaria are not only eager to work, but they are also well-educated and they make efforts to improve and add to their knowledge through various professional trainings, computer and language courses. The good education of the people in Bulgaria is a national policy. Thus, the companies that decide to outsource their business to Sofia and register a company here according to the Bulgarian company formation regulations will eventually become more competitive on the market and will allow them to enjoy a better market value.
The outsourcing companies are now able to try the local market at first by using a virtual office. Once they figure out how the business here works, they are welcome to rent one of the available Sofia offices in the big business centers. Another option for them is to buy such an office. However, if they do not plan to work in the country for long years and if they do not know how much they will expand, a better way is to rent an office in Sofia and move to a bigger one if needed. The business centers that are available in the capital are numerous, all of them being very modern and equipped with all necessary facilities for a smooth working process.
Company registration in Bulgaria could be easily arranged by following a few practical steps. The easiest way, however, is to use the qualified services, which are offered by the professionals dealing with company registration. The Commercial law in Bulgaria allows for the setting up of several types of companies including corporation limited liability company, joint stock company, a sole-proprietorship company, a charity organization, local branch of a foreign company, shelf company, a holding, and so on. The so called re-registration service of already existing companies is also available. The process of re-registration with the Bulgarian Trade Register is done for companies who have been established as such before year 2007 when that register was set and is in operation ever since.
We all live in a busy world, where one of the most cherished assets is the time. Thus, there are professionals who can help you set up a company in Bulgaria and save you not only precious hours and days, but also contact with the local administration system, the Registry Agency, banks, etc. Nowadays, setting up a company is easy and it does not require your physical presence. The first thing that is there to be decided upon is the form of the company you wish to set up. If you decide to go for a professional help, you will have a reputable team that will advise you on the type of company that is most suitable for the business you wish to make in Bulgaria. As stated above, there are several options available and with the help you will get, you will be able to pick the legal form that best matches your interests in terms of taxation, accounting and other. Usually, people who want to set up a company have a vision of what they want to achieve, thus the company formation process should be easy.
The documents that one needs to present in order to register a limited liability company in the commercial register include a completed application form for the registration, a memorandum of association and a constituent meeting minutes. Further are required a consent with specimen of signature that is certified by a notary public and this is required for each of the managers. Then, one will also need a declaration in compliance with art.142 of the Commercial Act, a reservation of the company name which should be unique, a document from the bank of the capital deposited as well as a receipt of the paid state taxes. In addition are required a certificate for the actual status of the shareholders and a decision of the managing body. When the company is set up, there are some other registrations that are quite important and need to be arranged. These may include VAT registration and registration at the National Insurance Agency if the company plans to employ other people, pay them salaries, etc. These registrations are complex as well and the best way to arrange them is by using professional advice and presentation.
During the second half of last year the supply of modern office premises in Sofia grew by over 12%. This gave grounds for the real estate agents specializing in the rental and sale of offices in commercial buildings, to make prognoses for an increased interest in quality commercial and business properties in year 2012. According to the expectations of the agents, the greatest will be the interest shown by companies that are working in the spheres of Internet technology and those working in the pharmaceutical sector. In other words, the companies will search for new and modern offices for their business will be mainly from those sectors that are not affected by the crisis. These companies are generally looking for offices with an area of 1000 sq.m, placed near the main boulevards.
Currently, the market shows that almost three quarters of the available office space in the capital Sofia are concentrated in the suburbs and only a quarter of them are located in the city center. In general, the number of the office buildings in the high Class A has increased significantly, but not all of them fully comply with all indicators of the class A offices. Since there is a demand for Class B offices as well, there is such supply on the market. Offices from Class B are in the focus of the smaller, often local companies. Another type of offices on the market, that face an increased interest are the virtual offices, which are preferred by the emerging local and foreign companies on the Bulgarian market, which wish to get an idea about the market.
The prognoses of the office realtors are for stability in the rental levels of the offices, as well as a steady demand for good offices in business buildings of Class A, which will be released on the market this year. The demand for this type of high quality offices will be strengthened by the fact that they meet the special requirements of the international companies, which intend to enter the Bulgarian market.
According to the prognosis of the realtors, the real estate market in 2012 will be more active if renting and purchasing of offices in the new and luxurious office buildings in the capital is concerned. Moreover, the professionals are optimistic that the city of Sofia will attract the solid investors from UK, USA and Greece, while there will also be an increased interest from established investors in Bulgaria. The analyses of the people who work in that sphere shows that these investors are willing to take higher risks, or wish to purchase office buildings under construction and to provide for their subsequent completion and rental.
The prognoses of the brokers, who are specialized in the rental and the sale of offices, are that in year 2012 this sector of the real estate market will not only reach the level of the previous year, but will surpass it. Among the most successful deals in Sofia in year 2011 were the sale of “Mall of Sofia” and “Business Centre Bells”, as well as the “European Trade Center”. It should also be mentioned that a large and modern office in the new office building “East Tower” was purchased for the outsorcing branch of the investment company “Bernard Investments” with headquarters in France.
The consulting firm Cushman & Wakefield published a report at the beginning of the year, which states that besides Bulgaria the other attractive markets for commercial real estate properties are the following countries – Hungary and the Czech Republic, Slovakia and Estonia, Croatia and Russia. The investments made in Eastern and Central Europe last year have reached 6 billion Euro and it is expected that a similar share of investments will be made this year. We should also mention the continued interest of the investors in the virtual offices, the use of which helps them find their way to enter the market before purchasing a real office.
It seems that the big companies are moving towards the end of Sofia, near the Ring Road. There are already several large business centers, except the Business Park, since there are serious plans for the construction of good and convenient road connections. Thanks to the good infrastructure, this area of the city is expected to attract more business companies and thus the new office area is expected to be near the new section between the big furniture store “Ikea” and the future “Sofia Ring Mall”, which is expected to become one of the largest entertainment and shopping centers in Sofia.
Besides the business companies that are now coming to the Bulgarian capital and are looking for offices in the high Class A, the region is also provoking the interest of many major retailers of furniture and equipment. Overall, the area between the Business Park and boulevard “Bulgaria” is formed as a new and modern office and shopping area, where except the buildings already familiar to us like the Business Park and the stores “Technopolis” and “Como”, and the Cinema Complex “Arena”, soon there will be many new office buildings and large stores. Before this happens however, the area presents a nice selection of completed office centers. There is a tendency these centers to be rented by the new international companies who are just entering the Bulgarian market before new business areas to be constructed.
The serious supply of office buildings in the city of Sofia in the last few years formed several different segments in that sphere of the real estate business. Several projects of office buildings of the highest quality are being preferred by the companies, while other projects are turning into outsiders. Those investors who have been smart enough to put their efforts on the planning and have carefully chosen the location of their office buildings, and have further insisted on the easy access, the good technical characteristics and the available parking options are now attracting the attention of the companies.
Currently, the companies can choose from more than 350 000 sq.m of available offices for rent or approximately thirty percent of all offices in Sofia. A great part of these offices are located in organized business centers in the outskirts of the capital. The prognoses are that the high-quality office buildings will get tenants in the next two years and will keep their popularity. At the same time, it is expected that the offices of the highest class when it comes to location and amenities will face an increase in the rental levels. Part of the business companies that are still hesitating whether to open offices in the country are currently using the option of the virtual offices in Bulgaria. Once they start to feel more secure they will most probably open offices in some of the high-class office buildings in Sofia.
The city of Sofia is among the European capitals with the greatest number of available offices of the highest class A. In the last year 2011, the rental levels of the offices have been stable. The same tendency could be seen at the office markets in Central and Western Europe, as well as in Russia. The office markets in Moscow and London have faced an increase in the rental levels of approximately ten per cent, while the office markets in Sofia, Athens and Dubai has underwent a decrease of eight per cent. The reasons for that for the city of Sofia is not the lack of interest but the increased number of offices available for rent. The tendencies for Sofia city are for a great number of the available offices and stable return levels of the investment.
Approximately 1.4 million square meters is the overall area of the offices in Sofia with more than 27 000 sq.m of new offices being completed in the last months of the previous year. The rental market is still in a slow phase and there are not many contracts sign. Those, which show interest in renting a new office, are usually companies that want to relocate and have access to better conditions and more extras in the office buildings of class A in Sofia. More than 150 000 sq.m of offices are to become completed and functional until the end of year 2012. The rental levels of the offices are expected to remain stable. The interest in the virtual offices in Bulgaria is also keeping its good levels and many companies are choosing that formula for making successful business in the country.
Now that the deadline for the company re-registration in Bulgaria is near, many company owners in the country should act quickly and arrange that procedure. Otherwise, they will have serious troubles with the ownership of their properties. All the companies, which are not included in this new online register according to the regulations of the Trade Register Law, shall be removed from the register of companies in the country. This will also result in a loss of the company assets, which includes properties as well. This is so, because the companies that have not went through the re-registration process shall be blocked and will not be able to sell their properties.
How can you re-register your company? This you can do in two ways – you can either come to Bulgaria or arrange everything from abroad. Since travelling can be time and money consuming, you can send a signed Power of Attorney to our lawyer, who can represent you and do that for you. The lawyer will prepare all the necessary documents ad will send them to you for a signature. Since the deadline is near, make sure to act quickly and arrange everything on time. Once the company is re-registered, all its financial reports since year 2007 should be published in the online register. The deadline for this is three months and that service, as well as other tax advisory services in Bulgaria are also offered by our company.
The deadline for the process of re-registration of companies in Bulgaria is at the end of the year or 31st December 2011. In case of failure to complete that procedure, the owners of companies might lose them and also lose the properties that are bought on the name of the company that is not re-registered.
This is important information for all those investors, who have purchased properties by company registration in Bulgaria before year 2008. According to the Trade Register Law, which is applicable to the Bulgarian companies, requires that all existing companies must go through the process of registration into the new online register by the end of this year.
According to the regulations of that law, which came into force in the beginning of year 2008, the companies which are not added to the new online register shall be removed from the register of companies in the country and will lose their assets, which includes properties as well. The companies that are not re-registered shall be blocked and will not be able to perform any activities at all, including sale of their properties.
By the end of June 2010 all Bulgarian companies registered in the Registry Agency must submit their financial reports for 2009, which is done in the Bulgarian Trade Register of the Registry Agency.
The companies that do not submit their annual financial reports on time are facing penalties from 2000 up to 3000 leva. There are more than 27000 such companies in Bulgaria for 2008.
The list of those companies has already been prepared by the Bulgarian Registry Agency and the National Revenue Agency. The deadline for submitting those reports was June 2009 so they are almost one year late with that.
The good news is for those who even though have missed the deadline have submitted the reports with some delay. For them the penalties will be significantly lower, the National Revenue Agency promised.
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