Company Formation Bulgaria – Registration Procedure (2023)
UPDATE 2023. We created this article in help of all investors who want to start their business in Bulgaria. It provides all essential details that need to be known about company formations and their registration in Bulgaria.
In general, every foreigner is allowed to start a business in Bulgaria. No matter if he/she has a Bulgarian residency permit or not. The establishment of a company formation in Bulgaria is easy and straightforward.
There are several types of company formations that can be registered in the country. Each of them has its individual specifics that are listed below.
New Company Formation Bulgaria 2023 FAQ
What is the process of forming a company in Bulgaria?
The process of forming a company in Bulgaria involves submitting documents to the Bulgarian Trade Register and registering for a Bulgarian trade license. This includes providing information about the company, such as the name and address, as well as the statutes of the company and the signature of the company’s representative.
The documents must be submitted in Bulgarian, and a fee must be paid to the Trade Register. After the documents are accepted, the company will receive a trade certificate and can begin business operations.
What types of companies can be formed in Bulgaria?
The most common types of companies that can be formed in Bulgaria are limited liability companies, joint stock companies and partnerships. Depending on the type of company, the requirements for registration and the information that must be supplied to the Trade Register will vary.
Are there any tax benefits to forming a company in Bulgaria?
Yes, there are certain tax benefits associated with forming a company in Bulgaria. For example, businesses with a registered office in Bulgaria can benefit from reduced corporate tax rates of 10% and other tax incentives. Additionally, certain types of companies may be eligible for tax relief on profits generated.
What Are Company formation costs in Bulgaria?
The cost of setting up a company in Bulgaria is relatively low compared to other countries in the European Union. The average cost of registering a company in Bulgaria is between €400 and €800, depending on the type of company you want to establish. This cost typically includes the registration fee, notary costs, lawyer fees, and any other costs associated with the process.
What is the divided tax rate in Bulgaria?
The divided tax rate in Bulgaria is a flat rate of 5%.
What is the VAT rate in Bulgaria?
The standard VAT rate in Bulgaria is 20%.
Why is Bulgaria good for business?
Bulgaria is an attractive location for businesses due to its low taxes, its low cost of labor, its access to the European Union, its strategic geographic location and its strong infrastructure. Low corporate taxes (10% flat) and low labor costs are two of the main reasons why Bulgaria is an attractive destination for many businesses. Additionally, its access to the European Union, its strategic geographic location and its strong infrastructure, make it a great location for businesses. Bulgaria has a well-educated and highly skilled workforce, making it a great place to invest in technology and innovation. Furthermore, its close proximity to other European countries makes it a great hub for companies looking to expand their operations in the region.
How to open company bank account in Bulgaria?
1. Choose a Bulgarian Bank: Research the different banks in Bulgaria to identify which one best suits your needs and offers the services you require.
2. Gather Necessary Documents: Gather all the documents you need to open a corporate bank account in Bulgaria. These typically include a company registration certificate, articles of association, a list of the company’s shareholders and directors, a valid passport or ID card of the company’s representatives, and a proof of address.
3. Visit the Bank: Visit the bank of your choice and submit the required documents in person.
4. Complete the Bank’s Forms: The bank will provide you with the necessary application forms, which must be filled out in full.
5. Wait for Approval: The bank will review your documents and decide if they will approve the application. Depending on the bank, this process can take up to a few weeks.
6. Activate Your Account: Once your application is approved, you will be asked to activate your account by making an initial deposit. This process can take up to a few days.
7. Start Banking: Once your account is activated, you will be able to start using it for banking transactions.