Category: Business Support

Like in every other country in the world, registering a company in Bulgaria and making business here, also means paying taxes. The taxes in the country are dealt with by the National Revenue Agency. The tax system includes direct and indirect taxation, custom duties and local taxation. All companies which are registered in Bulgaria are obliged to pay corporation tax to the amount of 10 %. This tax is also applied to foreign entities that trade in the country. The companies who are not registered in Bulgaria and do not operate in the country pay just a tax on the earnings that are generated here. Corporation tax should also be paid by legal persons on profits made from rental of immovable or movable property.

The indirect taxation or the so called VAT is applied on various spheres – supply of goods and services, vehicles imported in the country, etc. When the trade is between members of the European Union, then the terms used are intra-community acquisition and intra-community supply. The VAT basic rate is 20 per cent, but it can change for certain supplies. Then come the Custom duties, which are arranged by the Excise and Bonded Warehouses Law in Bulgaria. They are applied on alcohol and tobacco products, on coffee, on electricity and cars. The date of registration under the VAT requirements is the date of the registration certificate. When a foreign entity that is not registered as a company in Bulgaria wants to enter the market, then this entity shall register under the VAT requirements. The local taxation are those taxes that are collected by the municipalities. These include the property taxes, which concern those investors that plan to buy an office in Sofia or any other country in Bulgaria, the vehicle taxes which concern the companies that plan to use cars here, charges for domestic waste, administrative and technical service, pavements, markets, child care facilities, etc. The local taxes are collected by the local authorities and differ for each region.

Companies which are registered in Bulgaria and own an office in Sofia for example, plots of land, buildings and other immovable property shall pay an annual property tax. Persons who are required to pay VAT tax include the owners of such properties, but also concessionaires. When a new property is acquired, the persons who are required to pay a tax shall also complete a declaration according to article 14 of the Law for Local Taxes and Charges. This declaration shall be presented within two months of acquisition. The companies which have been registered most probably will acquire vehicles and naturally they have to pay taxes on these vehicles. The vehicles that have to be paid taxes on are vehicles which are registered to be used on the road system of Bulgaria, as well as vessels that are registered at the Bulgarian ports and airplanes with registration at the Aircraft State Register. The vehicles bought should also be declared within a period of two months after the purchase. The vehicles taxes are established by the municipal councils and they depend on the engine and year of manufacturing.

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.

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.