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Key Benefits of Company Formation in Bulgaria Explained (2024)

Mina Boycheva 14/06/2024

Considering launching a startup? Bulgaria might just be the location you’ve been searching for. With its strategic position as a bridge between East and West Europe, Bulgaria offers access to key markets that could be pivotal for your venture’s success.

Coupled with one of the EU’s lowest corporate tax rates and a vibrant tech ecosystem, this country offers a compelling mix of opportunities for entrepreneurs eyeing both European and global markets. So, if you’re curious about what it takes to start and grow a business in this dynamic setting, read on to explore the strategic, economic, and innovative advantages that make Bulgaria an enticing destination for startup ventures.

Why Consider Bulgaria for Your Startup Venture?

Starting a business in Bulgaria offers a unique set of opportunities for entrepreneurs worldwide. Its welcoming business environment, coupled with economic incentives, creates a nurturing ground for startups and established enterprises alike. Highlighting the strategic advantages, cost benefits, and the burgeoning tech landscape, Bulgaria positions itself as an ideal locale for business ventures aiming for European and global markets.

The Strategic Location of Bulgaria in Europe

Bulgaria’s geographical position in Europe acts as a gateway between the East and West, offering seamless access to several key markets. The country’s infrastructure, including four major airports and well-established road and rail networks, ensures efficient transportation and logistics. Access to neighboring countries such as Romania, Turkey, Greece, Macedonia, and Serbia opens up a vast consumer base, making Bulgaria a strategic hub for businesses looking to penetrate the European and Asian markets.

Cost-Effective Business Environment in Bulgaria

The financial aspects of starting and running a business in Bulgaria are highly favorable compared to other European countries. Notably, Bulgaria features one of the lowest corporate tax rates in the EU, alongside competitive labor costs. This cost-effective environment extends to affordable rents and real estate prices, offering tangible savings for businesses. Additionally, Bulgaria’s government provides various incentives for foreign investments, including grants and tax holidays, further reducing the financial burden on businesses and enhancing profitability.

The Growing Tech Ecosystem in Sofia and Beyond

Bulgaria, particularly its capital Sofia, has witnessed significant growth in its tech ecosystem. The city has become a vibrant hub for IT companies, startups, and innovation centers, supported by a highly skilled, multilingual workforce. This burgeoning tech scene attracts investment and talent, fostering a culture of innovation and technological advancement. Moreover, the availability of high-speed internet and commitment to digital entrepreneurship makes Bulgaria an attractive place for tech ventures. Networking opportunities, events, and tech parks offer platforms for collaboration, mentorship, and scaling businesses.

Can Foreigners Easily Start a Business in Bulgaria?

Starting a business in Bulgaria as a foreigner is quite feasible and straightforward, thanks to the country’s welcoming stance on overseas investment.

The process for setting up a company in Bulgaria mirrors that of local citizens, requiring foreigners to adhere to the same regulations and procedures. A significant aspect to note is the necessity for all documentation to be presented in Bulgarian, although documents from EU languages may be submitted with certified translations. This highlights the importance of either having a grasp of the Bulgarian language or seeking local assistance for smooth document handling.

The Legal Framework for Foreign Entrepreneurs in Bulgaria

The Bulgarian government has established a legal framework aimed at encouraging foreign entrepreneurs to invest in the country. This includes the formation of various company types, such as Limited Liability Companies (Ltd.), Joint Stock Companies (JSC), and partnerships, allowing flexibility for foreign investors in choosing the structure that best suits their business needs. The key to navigating this process successfully is understanding the local business environment, which may involve consulting with agencies like Invest in Bulgaria, which provide valuable insights and assistance.

Visa and Residency Requirements for Business Owners

For non-EU citizens, entering Bulgaria and starting a business entails obtaining the appropriate visa Type C for short stays and Type D for long-term stays, including conducting business activities.

EU citizens, on the other hand, enjoy a more streamlined process, necessitating only their ID for business endeavors, without the need for a visa. It’s essential for foreign entrepreneurs to closely examine these requirements to ensure they choose the correct visa type aligned with their business objectives, thus avoiding potential legal complications.

For business owners planning to reside in Bulgaria, the residency requirements involve more detailed processes, linked to the specific business activities and investments made. The steps generally include obtaining the necessary visa, registering the business with the Bulgarian Commercial Register, and then applying for residency.

These steps highlight the importance of thorough preparation and understanding of Bulgaria’s immigration policies for business owners.

Deciding on the Best Business Structure for Your Venture

Choosing the right business structure is a crucial step for entrepreneurs embarking on a new venture. The decision impacts various aspects of the business, from taxation and paperwork to your personal liability and the ability to raise funds. In Bulgaria, several options are available, each with its benefits and considerations.

A Comparison Between Sole Proprietorship and Limited Liability Company

Sole proprietorship and Limited Liability Companies – LLCS (EOOD) represent two common choices for business owners, yet they cater to different needs and situations. A sole proprietorship is the simplest form of business under which one can operate. It doesn’t require formal registration and gives the owner complete control. However, it also means that the owner’s personal assets are at risk if the business faces legal trouble or debt.

On the other hand, an LLC (OOD), known as a Limited Liability Company, provides a shield for personal assets, separating them from the business’s liabilities. This setup requires a more structured formation process, including the necessity to register the business and adhere to ongoing compliance standards. Despite these requirements, many prefer LLCs for the protection and flexibility they offer, especially in terms of tax advantages and shared ownership.

Understanding the Joint Stock Company Model in Bulgaria

The Joint Stock Company (JSC) model in Bulgaria suits those looking to establish larger ventures or planning to go public in the future.

A JSC protects its owners’ personal assets from business liabilities, similar to an LLC. However, it is distinct in its ability to issue shares to the public, a feature that demands meticulous compliance with regulatory standards and disclosure requirements.

The minimum capital requirement for a JSC is significantly higher than that for an LLC, reflecting its capacity to generate substantial capital and grow. This model is ideal for entities with big ambitions and a clear path to expansion.

Pros and Cons of Starting a Partnership in Bulgaria

Forming a partnership in Bulgaria can be seen as a middle ground between operating as a sole proprietor and establishing a corporation like an LLC or JSC. Partnerships allow two or more individuals to share ownership, profits, and liabilities.

The key advantage of partnerships is the simplicity of their structure and the ease of setup, making them appealing for small businesses and professional services.

However, partnerships also carry the risk of joint and several liabilities, where each partner can be held responsible for the business’s entire debts, regardless of individual contribution. This risk necessitates a solid agreement between partners to ensure smooth operation and conflict resolution.

Moreover, finding the right business partner one who shares your vision, ethics, and commitment level is critical to the partnership’s success.

While partnerships offer numerous benefits, including shared resources and collaboration, they also demand careful consideration of each partner’s roles and responsibilities to mitigate potential risks and maximize the venture’s success prospects.

Step-by-Step Guide to Registering Your Company in Bulgaria

Choosing a Unique Company Name and Securing It

Starting your business journey in Bulgaria begins with selecting a distinctive name for your company. It’s the first step that sets the stage for your brand’s identity. To streamline this process, reserve your company name before diving into the official registration.

It’s smart to have at least two alternative names ready, ensuring a smooth selection process in the event of a name conflict. While creativity in your company’s name is encouraged, remember that the official registration documents require the name to be in Cyrillic.

For those planning without a physical presence in Bulgaria, registering your business address provides access to local tax benefits, making it a strategic step worth considering.

Navigating the Company Registration Process

The registration of your company in Bulgaria is a clear, step-by-step procedure, designed to welcome new businesses. Begin by confirming the availability of your desired company name.

Following this, submit the requisite incorporation documents, which vary depending on your business structure options range from Limited Liability Companies (Ltd. or SMLtd.) to Joint Stock Companies (JSC).

While the process is increasingly digitalised, certain requirements like notarization might still necessitate physical presence or local legal representation. Additionally, for those not fluent in Bulgarian, various agencies offer translation and support services to facilitate your application, smoothing the transition into the Bulgarian business ecosystem.

Opening a Company Bank Account in Bulgaria

After your business is registered, opening a company bank account is the next logical step. This account will be the cornerstone for managing your business finances, from investments to daily transactions.

Bulgaria’s banking sector is robust, offering a variety of options suited to your business needs. When selecting a bank, consider the services they offer, such as online banking capabilities, multi-currency accounts, and the level of English-language support available. Proper documentation, including your company’s registration documents and proof of address, will be required to open your account.

Understanding the Bulgarian Tax System for Businesses

Bulgaria’s favorable tax system is often cited as a key advantage for businesses, featuring one of the lowest corporate tax rates in the European Union. Familiarizing yourself with this system will help optimize your financial operations. The corporate income tax rate is flat – 10%, and there are various incentives for companies operating in certain sectors or regions.

Additionally, understanding VAT obligations and how to handle personal income tax for employees is crucial. Seeking advice from a local tax consultant can provide personalized insights, keeping your business compliant and financially healthy.

Meeting the Local Employment Regulations

As your business grows, hiring local talent in Bulgaria can provide numerous benefits. However, it’s important to understand and comply with the local employment regulations. These cover a range of requirements, including contracts, working hours, minimum wage standards, and employee benefits.

Bulgaria offers a skilled workforce with competitive labor costs, but to harness this effectively, your human resources approach needs to respect local labor laws. Employing the right mix of talent while staying compliant with these regulations will support your business in achieving long-term success in Bulgaria’s dynamic market.

What Are the Costs Involved in Registering a Business in Bulgaria?

Registering a business in Bulgaria includes various financial considerations that future business owners must plan for. These expenses range from state fees to operational costs such as document translations and legal consultations. Significantly, depending on the business structure chosen, the initial setup cost can vary, influencing the company’s overall budget planning.

Initial Capital Requirements for Different Business Types

Starting a business in Bulgaria requires an understanding of the different capital requirements for various entity types. For instance, initiating a Limited Liability Company (LLC) necessitates a minimum investment of 2 Bulgarian Levs (BGN), equivalent to about 1 Euro, showcasing the government’s encouragement for small to medium enterprise development.

Conversely, opening a Joint Stock Company demands a considerably higher capital investment, placed at a minimum of 50,000 BGN or around 25,000 Euros. This distinction highlights the need for potential business owners to assess their financial capacity and business scope seriously before deciding on an entity type.

Administrative Fees and Legal Costs

The administrative journey of registering a business in Bulgaria involves several fees and legal expenses. Primarily, the state fees for registering a company include a 110 BGN charge for entry into the Commercial Register and an additional 40 BGN for maintaining the firm’s accounts. Opting for electronic submission can halve these fees, reducing them to 55 BGN and 20 BGN, respectively, which encourages future business owners to utilize online services for convenience and cost-saving.

On top of these, partnering with a law firm to navigate the company registration process is common practice. This professional assistance ensures accuracy and compliance with Bulgarian law but comes with its cost, ranging between 400-800 Euros.

This package typically covers lawyer fees, registration, and notary fees, creating a straightforward pathway for entrepreneurs to officially start their operations. It is also crucial to account for possible translation and document notarization fees, which vary based on the specific requirements of the business being established.

Being aware of these potential expenses and planning accordingly will be key to a successful business launch in Bulgaria. Organizing the necessary funds for these initial steps will ensure a smoother registration process and set the foundation for a successful business venture in this strategically located European country.

Navigating the Bulgarian Market: Challenges and Opportunities

Entering the Bulgarian market offers unique opportunities alongside certain challenges that must be addressed to ensure business success.

Bulgaria, known for its strategic location, acts as a gateway to both European and Asian markets, presenting a lucrative scenario for investors and entrepreneurs alike. However, understanding the local market nuances and regulatory requirements is crucial for navigating this terrain smoothly.

The competitive tax system and access to a skilled workforce are significant draws, but the bureaucratic processes and the need for permits and licenses can pose hurdles. Overcoming these challenges necessitates a strategic approach, thorough research, and possibly the assistance of experienced professionals.

Market Analysis: Understanding Your Sector in Bulgaria

Conducting a comprehensive market analysis is the first crucial step towards business success in Bulgaria. This involves understanding the economic landscape, industry-specific trends, and consumer behavior within the country.

In recent years, Bulgaria’s economy has shown steady growth with advancements in various sectors such as IT, green energy, and digitalization, bolstered by EU grants and initiatives aimed at economic recovery and sustainability.

Recognizing the sectors with high growth potential and aligning your business model accordingly can leverage Bulgaria’s evolving market dynamics. Moreover, staying informed about the legal and regulatory changes is indispensable for ensuring compliance and seizing emerging opportunities.

Adapting Your Business Model to the Bulgarian Culture

Adapting your business model to fit the Bulgarian culture is another essential aspect of ensuring business success in the country. This involves more than just translating sales materials into Bulgarian; it requires an in-depth understanding of local business practices, consumer preferences, and communication styles.

Building strong relationships is at the core of doing business in Bulgaria, and therefore integrating into the local business community can provide invaluable insights and open doors to new opportunities. Furthermore, showing respect for Bulgaria’s rich cultural heritage and traditions can go a long way in establishing your business’s credibility and creating lasting partnerships.

What Supports and Grants Are Available for Startups in Bulgaria?

Setting up a business in Bulgaria opens a gateway to a range of government and European Union financial instruments designed to kick-start entrepreneurial ventures. Understanding these supports and how to access them is crucial for new businesses looking to capitalize on Bulgaria’s growing economy.

Incubators and Accelerators: Jump-Starting Your Bulgarian Venture

Bulgaria’s entrepreneurial ecosystem is further enriched by a variety of incubators and accelerators. These programs provide startups with crucial early-stage support, including mentorship, training, networking opportunities, and sometimes even seed funding. Designed to assist entrepreneurs in turning their ideas into viable businesses, these platforms act as a catalyst for innovation and business development.

Engaging with these programs can provide entrepreneurs with the necessary tools and knowledge to grow their businesses successfully. Through tailored mentorship and access to a network of business professionals, startups can navigate the initial challenges of business ownership with greater ease. These incubators and accelerators are critical in nurturing the country’s startup ecosystem and enhancing the success rate of new ventures.

In conclusion, Bulgaria offers a supportive framework for startups through financial grants, tax incentives, and programs designed to foster business growth. The combination of EU and local government funding, along with incubators and accelerators, provides a solid foundation for entrepreneurs looking to start or expand their business in Bulgaria.

As these opportunities continue to evolve, they present a compelling case for Bulgaria as a prime location for entrepreneurial ventures.

Ensuring Your Startup Is Secure: The Importance of Cybersecurity

When venturing into the ever-competitive business world, the security of your startup’s digital assets should never be overlooked. With the rise of cyber threats that can cripple your operation before it even gains momentum, understanding and implementing cybersecurity measures is not just beneficial; it’s essential.

Navigating Post-Registration Steps: Your First Year in Business

After registering your business in Bulgaria, the journey has only just begun. The initial year of operation is crucial for setting a strong foundation and navigating through the essential tasks and obligations. Understanding the legal, accounting, and market dynamics of Bulgaria can significantly contribute to the smooth operation and growth of your business. Here are the actionable steps and considerations that are pivotal for thriving during your first year in the business landscape of Bulgaria.

Key Legal and Accounting Considerations for New Businesses in Bulgaria

The first year of any business is often focused on ensuring that all the legal and financial obligations are met punctually and accurately. For businesses in Bulgaria, particularly those with international ties, understanding the local legal and accounting rules is paramount. Here’s what you need to know:

  • Stay Informed on Tax Regulations: Businesses in Bulgaria are subject to a flat corporate tax rate as well as VAT obligations. It’s essential to familiarize yourself with these rates and ensure timely filings to avoid penalties.
  • Manage Your Books: Accurate bookkeeping is not just a legal requirement but also a business imperative. It helps you understand your financial health, manage your resources effectively, and prepare for audits.
  • Understand Employment Laws: If your business plans to hire employees, it’s important to comply with Bulgarian labor laws. This includes contracts, minimum wage requirements, working hours, and health and safety regulations.
  • Company Annual Reporting: Annually, companies must submit financial statements and declare their incomes. Ensuring these reports are accurate and submitted on time is crucial.

Adhering to these legal and financial protocols not only helps you avoid fines but also builds your credibility and reputation in the Bulgarian market.

Building Your Presence: Marketing and Networking in Bulgaria

Developing a strong market presence is essential for any new business. In Bulgaria, where relationships and local networks often influence business success, taking the right steps to market your company and build networks is crucial.

  • Embrace Digital Marketing: Establishing a digital footprint through a website, social media, and online advertising can significantly enhance your visibility. With most consumers turning to the internet to find products and services, having searchable and engaging online content is imperative.
  • Local Networking: Joining local business associations, chambers of commerce, and attending industry events can provide valuable connections, insights, and opportunities. Networking is key to finding partners, customers, and even talented employees.
  • Understand the Market: Conduct market research to identify consumer trends, competition, and potential opportunities in Bulgaria. Tailoring your marketing strategies to the local audience can help you meet their needs more effectively.
  • Leverage Local Media: Consider using local newspapers, radio, and television to promote your business. Local media can be particularly effective in reaching a broader audience, especially if your business caters to the local market.

By focusing on these areas, you can establish a strong brand presence in Bulgaria, helping your business to grow and succeed in its first year and beyond.

Success Stories: Startups That Thrived in Bulgaria

Bulgaria, with its strategic location, low corporate taxes, and skilled workforce, has become a fertile ground for startups. Here, we explore a few remarkable success stories of startups that have thrived, turning Bulgaria into their launchpad for global success.

How These Entrepreneurs Made It Big

Several Bulgarian startups have made headlines for their innovative solutions and rapid growth. For instance, a tech company specializing in AI has seen exponential growth thanks to its robust software solutions.

Another success story is that of an eco-friendly startup, which has developed sustainable products leading to wide recognition and substantial venture capital funding. These entrepreneurs leveraged Bulgaria’s business-friendly climate, financial incentives, and access to a broad market to fuel their growth.

Their journeys underscore the importance of aligning product offerings with market needs, smart use of available resources, and the crucial role of networking within the business community, both locally and internationally.

Lessons Learned: What You Can Apply to Your Venture

Examining these success stories reveals valuable lessons for aspiring entrepreneurs. First and foremost, understanding the local market and regulatory environment is crucial. Bulgaria offers unique opportunities, but it’s essential to navigate its business landscape smartly and legally.

  • Flexibility and Adaptability: Startups that succeed in Bulgaria are often those that adapt quickly to market changes and regulatory requirements.
  • Networking: Building strong relationships with local businesses, investors, and governmental bodies can provide a solid support structure.
  • Market Research: Comprehensive market research is critical. Understanding local consumer behavior and identifying gaps in the market can create lucrative opportunities.
  • Leveraging Local Resources: Bulgaria’s skilled but cost-effective workforce is a significant asset. Entrepreneurs should make full use of this advantage.

Ultimately, the key takeaway from Bulgaria’s startup success stories is that with the right approach, the country offers a supportive ecosystem for businesses to grow. The blend of low operational costs, strategic location, and access to talent makes Bulgaria not just a place to start a business, but a hub to expand it globally.

Conclusion: Is Bulgaria the Right Choice for Your Startup?

Deciding where to establish your startup is a critical step that can influence your business’s trajectory. Bulgaria presents a compelling option for entrepreneurs worldwide, thanks to a blend of advantages that cater to the economic, logistical, and cultural needs of a burgeoning business. This country, nestled at a crossroads between Europe and Asia, offers an amalgam of opportunities that can catapult startups into the international arena.

Bulgaria’s strategic location cannot be overstated. It acts as a gateway to both European and Asian markets, offering unmatched access that is vital for startups aiming for global influence. The benefit of being at such a juncture is not just in geography but also in the ease of logistics and trade it facilitates with neighboring countries. Furthermore, Bulgaria’s economic landscape, marked by its low corporate tax rates and operational costs, makes it an economical choice for startups mindful of budget without sacrificing quality or access to skilled labor.

However, the decision to start a business in Bulgaria should stem from a comprehensive understanding of what this country has to offer. It’s not just about the financial benefits but also about immersing your business in a culturally rich and innovative environment.

The industrious and highly educated workforce is ready to push the boundaries of industries like automotive, electronics, manufacturing, and beyond. Moreover, government initiatives and organizations like Invest in Bulgaria agency provide invaluable support to foreign entrepreneurs navigating the legal and economic landscape of the country.

For entrepreneurs pondering whether Bulgaria is the right place for their startup, considering the blend of strategic advantages, economic benefits, and the supportive ecosystem is crucial. As you weigh your options, remember that success also depends on aligning your business goals with the unique opportunities that Bulgaria offers.

It’s about finding harmony between what your startup needs and what the country can provide. Whether it’s the advanced manufacturing capabilities, the burgeoning tech scene, or the strategic market access, Bulgaria offers a vibrant ground for entrepreneurs ready to take their business to the next level.

In the ever-competitive global market, choosing Bulgaria could be your first step towards pioneering innovation and expansive growth. For those still navigating the decision-making process, reaching out to experts like Nomad Capitalist can provide guidance tailored to your business needs. This could very well be the turning point, offering not just a new business location but a strategic partner in the global landscape.

Ultimately, the question of whether Bulgaria is the right place for your startup is one that combines both objective advantages and subjective fit. If you’re looking for a country that offers a balance between economic efficiency and access to a dynamic and expanding market, Bulgaria stands out as a prime choice. Its doors are open to those ready to embrace the challenges and opportunities of the global business arena.

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Factors determine the rental price of an office

Mina Boycheva 03/03/2022
factors determine the price list office rental price offices for rent

Factors determine the office rental price

Are you looking for office space for rent? Then you probably want to know what is the rental price of the office space that you need. Although the market for office rent in Sofia is large, when a person starts looking for an office, he often cannot find the desired office, or in case he finds it, it turns out that it is much more expensive than the budget he has set.

The cost of office rentals can vary considerably within the city and even within a certain area. Therefore, in order to help you better understand the lease prices of offices for rent, below we have prepared a list of the main factors that determine the rental levels for offices in Sofia.

The rental price for an office depends on several main factors:

– location of the office

– type of building in which it is located

– Features of the office itself

– The floor on which it is located (only in some office buildings)

 

Location of the rental office:

In recent years, several major business districts/clusters have developed in Sofia, which are a preferred location for most companies.

For Class A office buildings, the highest rental levels are for office buildings in downtown Sofia, Tsarigradsko Shosse blvd. and Lozenets in the area next to Paradise Mall. At the last location are some of the newest and most modern class A office buildings in Sofia, built in the last few years. At these locations, the office rental prices are 12 – 16 Euro / sq.m without VAT.

The middle price range includes the offices located in Mladost 4, Todor Alexandrov Blvd., Iztok, Lozenets, outside the Paradise Mall area, as well as the office buildings in the areas around Bulgaria Blvd. Here the rents vary between 8 – 12 Euro / sq.m without VAT, with of course exceptions for the newest class A office buildings, where rents are higher.

There are also class A office buildings, which are located in different and slightly more distant from the center areas, where you can rent an office for less than 8 Euro / sq.m. These are areas such as Druzhba, Sofia Airport, Geo Milev, Student City (Studentski Grad) and others.

 

The type of building is the other factor that determines the amount of rent

Offices in Class A office buildings are usually rented at the highest price levels specific to the area. However, this higher rental price allows for the use of many additional extras/amenities that the building offers. Such extras are the representative common areas in the building with a 24/7 reception, conference halls, designated places for recreation such as a park environment or large panoramic terraces, restaurants, in some cases a commercial area, fitness, underground and outdoor parking and more.

The rents in class B office buildings are lower, and those in mixed-use buildings or in residential buildings are the lowest and in some places can reach 5-6 Euro / sq.m.

 

Features of the office itself and the floor on which the office is located

The rental price of some of the rental offices also depends on their specific characteristics. These can be the layout of the office, the presence / absence of a kitchenette, bathroom in the office, bevels, etc. The features of an office affect the rental price mostly for offices located in mixed-use buildings or in residential buildings.

The floor on which the office is located can also affect the office rental price in some cases, including large class A office buildings. In some of them, the rents for the offices located on the higher floors are 1-3 Euro / sq.m higher than those for the offices on the lower floors. Ground floor offices are also generally offered at lower prices.

 

If you still have doubts about the best choice for you, according to your budget, you can contact us for a free consultation at: 00359 885 908 811; 00359 888 137 222 or e-mail: [email protected]

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6 things to consider when looking to rent an office

Mina Boycheva 03/03/2022
office amenities office budget office for rent office location rent an office sofia things to consider

6 things to consider when looking to rent an office

Choosing an ideal office for your business is not an easy task, because there are a lot of factors which you have to take into consideration.

Because of that, a good understanding of the market can significantly cut the time you spend searching for an office.

То help you find an office we made a list with basic factors you have to take into consideration when looking for an office space to rent.

 

 1) Budget 

Determining your budget is the first thing we advise you to do when searching to rent an office so that you don’t lose time and energy in worthless viewings. The office market in Sofia is large and varies in price so your budget is the defining point between which offices might be suitable for you and which are not.

The rental price is determine by factoring the following points:

–             The office location

–             The type of the building where the office is

–             The features of the office

–             The floor on which the office is ( only for part of the office buildings)

More about the factors that determine the rental price of the offices, you can read here Factors determine the rental price of an office

 

2) Location

Location is key when choosing an office space. The office should be easily accessible for both your employees and your customers (if they visit you often).

If your office is difficult to find or in an area with few transportation links, this can negatively affect finding new employees or retaining old ones, as well as your relationship with customers.

Very important for the location of the office is the existence of nearby dining areas, cafeterias, bank branches, parking spaces, public transport stops, etc.

If your company’s employees, as well as your customers, travel mainly by car, then it is better to choose an office with a location that is outside the most popular ones, but will provide you with easy accessibility and parking.

One of the most preferred areas in Sofia are those in the immediate vicinity of the metro, which provides fast movement, regardless of overground traffic. The proximity to the metro is extremely convenient, but it also brings with it higher rental levels for the offices around it.

 

3) Office size

The size of the office is the next thing you need to consider when looking for an office for rent. If your business is growing and you expect the number of your employees to increase, it is good to consider whether to take a slightly larger office that will meet your needs in 6-12 months or choose a larger office building that will be able to to provide you with a larger office for rent when needed. You can read more about how to determine the office space you need and what to consider at How much office space for rent do I need?

 

4) Amenities 

Some of the offices nowadays come with a wide range of additional amenities. Before you start your search, we recommend that you decide what amenities your employees need to have access to. Those can be places for rest, meeting and conference halls, restaurants, fitness, bicycle parking, outdoor green space, etc.

Keep in mind that the more additional extras that are offered in an office building, the higher the rental price of the offices in it will be.

 

5) Term of rental agreements for offices

There is a significant difference in the conditions for renting an office in the different types of buildings. Below we will describe the main differences to help you decide more easily what type of office building would be most suitable for your business depending on your plans and resources.

In class A office buildings, the term of the contracts varies between 3-5 years, and in most cases this period is unbreakable. If you are not ready to commit to such a long-term lease, we recommend that you look for an office in one of the other types of buildings (class B, mixed-use buildings or residential buildings), where the term of contracts varies between 1-3 years and many contracts are often with more flexible terms and conditions.

 

6) Additional costs and fees for renting an office

The Service charge (maintenance fee) as well as the security deposit are an integral part of the rental agreement for each office and are important to consider when determining your budget.

– Service charge

In addition to the rent, in office buildings you have to pay a service charge, which is calculated based on the rental area. Usually for class A office buildings it varies between 2 Euro / sq.m – 3.5 Euro / sq.m without VAT, and for class B buildings it is between 0.8 Euro / sq.m – 2 Euro / sq.m without VAT. This fee is different for each building and is paid monthly, together with the rent for the office.

There is also a maintenance fee due for common parts in mixed-use buildings and residential buildings, but it is usually minimal and does not depend on the size of the office.

– Deposit for the office rental agreement

In every rental agreement there is a security deposit that has to be paid by the tenant, which serves as a guarantee for the good maintenance of the office premise and the timely payment of the amounts due under the contract.

For Class A office buildings, this security deposit is usually equal to of the sum of 2 or 3 monthly rents plus the subsequent service charge fees. For Class B office and mixed-use buildings, the deposit is the sum for 1-2 months

 

At Sofia Offices we know how important it is to choose the right office space. Our team is available to help you find the perfect place for your business without wasting time in unnecessary surveys and market research. Are you ready to start your search? Contact us by e-mail: [email protected] or call us at 00359 888 137 222; 00359 885 908 811.

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How much office space for rent do I need?

Mina Boycheva 15/12/2021
choose the right size of your office for rent office for rent office space tips type of office buildings

How much office space for rent do I need? – Few useful tips

Taking an office space for rent is a very important decision, which is bounding by a contract for years to come, so choosing the right office size is very important. In addition, the right office size will provide you with a calm and pleasant work environment with enough space for you and your employees. Choosing the right size of the office depends on several key things:

1. Type of the office building

First of all, it is good to decide what kind of building you want your office to be situated at. In other words, whether you are looking for an office for rent in class A office building, class B, mixed-use building or office in a residential building.

In almost all cases, the offices for rent are offered with their gross area, which includes the net area of the office and added area for common parts of the building, corresponding to a percentage of the common parts. The rent is calculated on the gross area of the office.

An exception to this are the old administrative buildings, as well as the old residential buildings built before 1998, which offer offices for rent with their net built-up area.

What is the difference in % of common parts for different types of buildings?

Class A office buildings are the largest business buildings in Sofia with large and representative common areas. The rental area of the offices in these buildings includes a larger % of common areas, which is between 14 – 24% depending on the building.

For smaller, class B office buildings this percentage is between 10-12%, and for residential buildings – about 10%

What does “leasable area” mean and include?

The leasable area is the area on the base of which the rent for an office is paid. It includes the net area of the office (the built-up area of the office, together with the walls), as well as the area of common areas, in accordance with the above-mentioned percentages.

2. Additional premises in your office

The additional rooms that you will need are also important when choosing the right size for your office.

Additional, auxiliary rooms are the second thing you need to think about before determining the size of the office. It should provide enough space to work comfortably and without worries about lack of space or excessive waste of space in it.

In addition to the workrooms where your employees will work, you need to consider what additional rooms you will need – such as a meeting room(s), kitchen, lounge, storage room, server room, terrace, etc. The area of these additional premises should also be taken into account when determining the size of the office you are looking to rent.

Keep the following standards in mind when choosing an office space:

    The standards assume an average of 7-10 square meters minimum space required per person in an office.

In open-space premises, you can put in more workstations than on the same area in an office divided into separate rooms.

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Office Renting in Sofia – (Locations/Prices/Options)

Mina Boycheva 05/11/2019
Coworking spaces Sofia new office building in Sofia Office A

If you’re seeking to set up a business in Bulgaria, you will certainly need to consider renting out an office. Local, as well as international realty firms operating the domestic market, are best placed to help you negotiate your way around the choices. Yet, we can certainly offer you a fast summary of your alternatives.

Modern office complex

Rental fees for Class A workplace in Sofia stand at 10-12 euro/m2 at the end of 2018. Although at first glance it appears like there are a lot of high office buildings around Sofia, it turns out there is actually sort of a lack of excellent office spaces that fulfills the requirements of international companies. Bulgaria’s popularity as an outsourcing destination has pushed up the leas and has led to reduced availability. Outsourcing businesses require class A workplace with all the modern-day services for their teams. Additional services related to safety, cleansing, hidden wiring, web and phone accessibility, cooling, cars and truck garage, restaurants and coffee shops, recreational locations, among others, are also needed. That’s why large workplace complexes like the Business Park Sofia still draw in many companies since they offer every one of these additional services, plus outside areas, a selection of dining as well as coffee shop choices, shops, and even dry cleaning. Business Park Sofia remains, in fact, a mini-city.

According to Forton, a real estate consultant, there is presently 1.7 million m2 of Class A and B office space in Sofia.

Most of this is located along the main web traffic highways such as Tsarigradsko Shosse, Bulgaria Boulevard, Todor Alexandrov Blvd, Nikola Vaptsarov Blvd as well as in the residential areas and also the area near Sofia Airport. Significant new projects currently being developed in the prime office segment in Sofia city centre include City Tower (34,600 sq m leasable office space) at Macedonia Square as well as Millenium Centre – 3 high structures near NDK.

Serviced office

Serviced workplace can be a remedy both for long term as well as short-term requirement. Serviced workplace gives fully furnished and also equipped workplaces, IT infrastructure, safety and security and secretarial as well as admin support. This can be a terrific benefit to companies not wanting to make capital expenditure on fitting out a workplace, authorizing long-term rental agreements. Serviced office suppliers offer a great deal of flexibility, consisting of the possibility to alter workplace dimension, per hour rental of conference room, online offices. This is specifically attractive for start-ups and also worldwide companies.

Workplaces in apartment

Many companies still choose workplaces in apartment buildings in the centre of Sofia in spite of negative aspects such as traffic jam, vehicle parking as well as the old facilities of a number of the structures. Most apartment or condos for rental as workplaces are on the ground or on the first floor. The convenience of being situated in the city centre is what leads most companies to select such offices, especially if their organization negotiations happen around. Furthermore, there are some very attractive older buildings around Rakovsky St., Physician’s Garden area, which can add prestige to the firm’s picture. Leas differ hugely from around 4 euro/m2 to equal those of the Course A workplace centres at 12 euro/m2.

Coworking

Coworking is becoming crucial in Sofia, and there are numerous coworking spaces. Such spaces are Soho, Betahaus,Cosmos Coworking Camp,Trevor Workspaces – Lozenets and more, which offers offices, coworking area, a coffee shop with a yard. Also hosts a variety of exciting events.

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Company Registration Procedure in Bulgaria (Step by Step)

Mina Boycheva 31/10/2019
business in Bulgaria company formation Bulgaria company in Bulgaria 2019

How to extent your company in Bulgaria?
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How to register a firm in Bulgaria?
Take FREE consultation and offer for company formation in Bulgaria.

In this article, we will undergo the process of registering a company in Bulgaria. With time a growing number of individuals choose to start their own venture right here. This is primarily due to the mix of low company taxes as well as the open door to the European market.
We will try to answer some the most common concerns pertaining to business incorporation in the country, like who can sign up a firm, how much does it cost, what time does it take, etc.

Who can register a firm in Bulgaria?

Actually, any person who has reached the age of 18 regardless of citizenship. There are basically no official demands or conditions for international people that intend to sign up a firm. It doesn’t also matter if you are a European citizen or not.

What sort of firm should I register?

The type of company you need is most likely an OOD. This refers to the well-known and also favored around the world restricted liability business– LLC or Ltd. For a lot bigger companies it might be appropriate to register a joint-stock company but these cases are actually unusual.

How much does it cost?

Company registration in Bulgaria is relatively cheap compared to the majority of European countries. The state tax is approximately 55 EUR, yet it is lowered in half if the records are filed online. In order to do this however, one should have an electronic signature with an electronic certificate. Generally future firm owners license a lawyer or an additional expert that owns an electronic signature to file the company papers on their part in the Trade register.
Apart from this, you must add to the total costs a little notary cost and also an additional tiny fee for opening a checking account (integrated at no more than 15 EUR).

What must the future proprietor of the business do for the registration?

Although the procedure is definitely not complicated, there are a variety of documents that have to be presented to the Bulgarian trade register upon registration. They include the company by-laws, some official statements signed by the supervisor and evidence for paid state fee as well as deposited capital.
A few of the stated documents can be prepared by a legal practitioner while for others you have to go to a notary and a bank institution. At the bank, you open a firm account and also deposit the starting funding. Don’t stress too much over this. The minimum firm resources is 1 EUR although we extremely recommend signing up the business with a much bigger first financial investment. The factor for this is that the new firm resources need to be enough to cover at least the initial expenditures that your business may have, like office rental fee, acquisition of supplies and other.

Do I have to literally remain in Bulgaria for the registration process?

Staying in Bulgaria for the enrollment is useful, yet it is not completely mandatory. Instead of going to a notary you can visit a Bulgarian embassy or consulate abroad as well as you can license a third party to transfer the firm resources on your behalf. You can sign all the required files from another location.

How long does the process take?

Not too long, really. You can conclude the whole procedure from beginning to end in three service days. If you utilize the solutions of a professional, the things that you have to do shouldn’t take more than a number of hours in Bulgaria.
What to keep in mind?
First, you must recognize that in Bulgaria you can just register a firm under a name written in Cyrillic. You are complimentary to add a name in Latin, however it should be identical to the Cyrillic one. This name must likewise be available, implying that there is no other business with the exact same name already registered.
Also note that the files for the business enrollment (or registration) must be written in Bulgarian. You can additionally make use of multilingual documents; still, the translation in Bulgarian is a must.
The best recommendation is that you employ an expert for the company registration. The process may not be that complicated but it is a strictly formal one. This suggests that any kind of blunder will certainly result in rejection by the Trade register and you will certainly need to invest more cash and time in the process.

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How To Hire Foreign Student in Bulgaria in 2019

Mina Boycheva 22/08/2019

This article will help you learn how to hire foreign student to work in your Bulgarian company in 2019

  • Foreign students admitted to training in the Republic of Bulgaria may be employed under a contract of employment without requiring a work permit from the Labor Offices. For them, a mandatory REGISTRATION REGIME is provided for in the Ordinance on the Terms and Procedure for Issuing, Refusal and Withdrawal of Work Permits for Foreigners in the Republic of Bulgaria. – within 3 days of entering the work, the employment contract must be registered at the “Labor Office” Restrictions on working hours and the duration of the employment contract are provided. It can be: – 20 hours a week during the school year and during the official holidays announced by the school concerned – the duration of the contract may not be longer than the period of validity of the residence permit The following documents are required to register the employment contract at the Labor Office Directorate: 1. 3 copies – Declaration for carrying out short-term employment without a work permit through the registration of students in the Republic of Bulgaria under Article 38 CTRM / Annex No. 6 to Art. 34, para 1, item 1 2. Copy of the Registration Certificate at the NRA / registration of the employee – PNL or SV number / 3. A Copy of a Passport 4. Certificate of Higher Education Certificate / that is enrolled as a student for the current year / 5. A copy of the Labor Agreement 6. Actual status of the labor contracts on ……. / last day of the month preceding the month of appointment of the employee / 7. Information about the Legal Register from the Commercial Register / download from the website of the Registry Agency – Commercial Register / All documents that are not originals must be certified with – True to the original, signature and stamp.
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The outsourcing business in Bulgaria has good perspectives ( Updates 2019)

Mina Boycheva 26/03/2019

The newly established Bulgarian Outsourcing Association made prognosis for a stable increase in the number of companies that plan to outsource their business to Bulgaria. These companies be registered in Sofia and could come from many spheres of activity. The new association predicted that the increase in the number of companies will be around three times in the next five years. The outsourcing business is considered among the most dynamic industries in the country and currently it employs around 15 000 people in the capital. Their number is expected to triple according to the five year prognosis. The stable political situation, the low taxes and the acceptable wages in the country, the professional skills of the employees, as well as its being part of the European Union, make Bulgaria an attractive destination for the large and stable companies in Western Europe and the United States. These companies will look for business centers with offices of the highest class, which have central and convenient locations and perfect infrastructure, besides offering an impressive range of services and facilities. It is believed that these big companies will later open other offices throughout the country in cities like Varna and Bourgas, Plovdiv and Rousse.

The outsourcing business is considered among the most dynamic industries in the country and currently it employs around 15 000 people in the capital. Their number is expected to triple according to the five year prognosis.

Among the founders of the Bulgarian Outsourcing Association are companies like Coca-Cola Hellenic IT Services, AII Data Processing, Sofica Group, Atos Bulgaria and Bulpros. They believe that if the state and the companies join their forces, this will lead to a stable development of that industry sphere. If the proper activities are arranged and successful policies are followed, then Bulgaria can become one of the top ten destinations for outsourcing. Special attention has to be paid to the professionals who apply for work in these outsourcing companies. Usually, these are people with a lot of knowledge and skills, but they still need training in certain spheres. It is not a secret at all that some of the largest outsourcing companies that are working in Bulgaria are in direct connection with the universities where they look for ambitious students. They try to attract the talented ones and offer them a job before they head to a carrier abroad. There is potential in the rest of the big cities in the country besides Sofia, where there are no such projects and opportunities, but there are still good professionals. The outsourcing industry is in demand for different types of employees – from recent graduates to managers and strictly qualified professionals.

In general, Bulgaria has excellent reputation among the companies in the outsourcing business and it will continue to attract them. The reasons for that are not only the membership of the country in the European Union, but also the tax alleviations and the desire for less bureaucracy.

In general, Bulgaria has excellent reputation among the companies in the outsourcing business and it will continue to attract them. The reasons for that are not only the membership of the country in the European Union, but also the tax alleviations and the desire for less bureaucracy. Of course, we should also mention the welcoming atmosphere, the excellent infrastructure and the construction of business centers with prestige location that correspond to the needs and the requirements that are important to the foreign investors.

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How Difficult Is Opening Bank Account in Bulgaria

Mina Boycheva 27/08/2018

Back in 2016 opening of bank account in Bulgaria and starting any business was one of the easiest operation in whole EU. Today in 2018, In order to open an account in any bank and register company in Bulgaria, you should be aware of the new restrictions for any foreign individual or company.
The biggest banks in Bulgaria like UniCredit Bulbank bank, Raiffeisen Bank, First Investment bank , ProCredit bank are getting even more conservative and almost do not allows new foreign client accounts.

However if your business is very strict forward, transparent and you can proof that. You may not have any problems to open your new bank account and benefit from the Bulgarian lowest EU tax treatment. Great news is that Virtual Office is still very acceptable and the banks does not complaint with that.

2018 Bank Account Opening Procedure in Bulgaria

Ones you visit any branch of bank operated on the territory of Bulgaria be ready for the following list of questions:

  • What is the main activity of the company
  • Who is the beneficial owner of the company
  • Is there any local who can be contacted if necessary

Ones you pass this first interview you must be very strict with all you have declare. Invoicing, clients, payments from and to the account. Your account will be monitored in the first 1 year and if there differences from what you have declared first, you account can be in the risk to be closed immediately.

Normally different banks are entitled to proceed according to their terms on local or foreign clients or regarding the type of the accounts which they can open and hold. In general the most popular type of bank account remains the current bank account that serves for all kind of transactions such as depositing, storing, withdrawing and transferring money.

Other types of bank account that can be open are either an individual account or a business account (for different types of legal entity, joint stock company in the process of being set up, etc.) that can be a capital account. There are no legal restrictions on the number of the bank accounts you can open and hold in one or several banks but a certain bank may have its own policy or certain limitation.

Documents required to be presented for individuals are identity card (for a Bulgarian citizen or a EU member citizen) or another identity document such as passport (for a foreigner or a non-EU citizen) or another type of residence permit of the foreigner. This document must be presented both in original and copy.

Also some of the banks may require the foreigner to submit IBAN of an existing bank account in the foreigner’s country in order to confirm he has bank customer’s history as well as a recommendation letter, translated in Bulgarian language, from a Bulgarian who is a client of the same bank.

Bulgarian banks opens and maintains accounts and carries operations in local currency (Bulgarian levs) but also in all major foreign currencies such as Euro, US dollars, Swiss francs or British pounds both for local and foreign customers. Respectfully, money can be received into the account through cash payments or cashless transfers.

Once you are prepared to open an individual bank account, you have to sign a contract (obligatory in written and completing forms of the bank) with a request of opening and maintain a bank account under general terms governing the relationships between you and the bank including fees (monthly, yearly, etc.), commissions, termination and other terms of use of the account. Afterwards you will receive the unique personalized number of the newly opened account, IBAN, which is also an international number.

In case of opening a business account, you need also to present a Specimen of the signatures of your company. All the specimen signatures must be handwritten in front of a responsible bank employee or certified by a notary. You will also have to provide to the account an amount equal to the capital stated n the contract and in the articles of association of the company. Depending on the type of the entity the bank may require more additional documents such as a court decision to set up the company, a bank certificate, etc.

For the opened individual account the bank provides to the account holder a card containing the account number, the name of the holder, the personal identification number for the Bulgarian citizens and date of birth or personal number of the foreigner (in case he had already issued) and term of validity of the card. Most of the banks provides their customers with the online banking opportunity too by which you can execute various operations with your bank account in real time through your Internet profile on the bank website.

Banks are entitled to require opening fees or minimum amount for initial powering of a current account.

If you need someone else to operate of the funds of your current account, you must authorize the person to have the rights to dispose of this account by an authorized power of attorney.
Sources used:

1) Ordinance No. 3 of 18 April 2018 on the Terms and Procedure for Opening of Payment Accounts, for Execution of Payment Transactions and for Use of Payment Instruments
2) Payment Services Directive of EU of 1 January 2018 (PSD2)

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5 Must Ask Before Choose Coworking Space or Serviced Office in Sofia

Mina Boycheva 20/08/2018
Coworking spaces Sofia


In case you work as a feelancer but you want to explore Sofia , a remote worker or still planning the stages of your future start up or even if you have a big business already, choosing a coworking space option happens to be the most convinient idea for saving your capital and developing new contacts and creative opportunities.

And how to choose a co-working space in Sofia? This can be quite a challenge too, so don’t hurry before you answer some relevant questions regarding what would be the best for you or your colleagues among fitting personal requirements, budget, type and more.

1 Type of Coworking Space

What type of co-working space do you need? Coworking spaces vary accordingly to the needs of their customers. For example, If you are working in a small team than you may find appropriate leasing a whole prived serviced office. This type of office should be fully fitted with various kind of services to satisfy everyones needs in your team. If you work alone, then standard coworking space offer is for you.

2 What Rental Cost and Services Included

Sofia is budget destination, comparing with most EU cities. Rental cost and what it will cover are always important to be asked. The serviced offices require some deposit and no prepayment most often. Coworking office must have profitable membership schemes of using a coworking space only when you need, month-to-month leases, shared or flexible payment fees options that you can take advantage of or arrange it. A ready office space or coworking office should be providing an office infrastructure, enough utilities and functionality of the space. You should concider to have everything you need to maximize your productivity including access to all-in-one such as fast WIFI, prefered type of seating and desks, reception, meeting rooms, conference room, printing devices, breakout spaces, kitchen, coffee suply, etc.

3 Sofia Offices Location

Choosing a location goes as a must ask too. You should concider the transport network in Sofia and the costs of travelling to the place. It must also be close enough for your clients or other employees to visit. The central or downtown locations are usually the most wanted and adding up a sense of prestige too and value to your business.

4 Coworking Community in Sofia

By choosing your coworking space or private office in Sofia you will also choose community, future human capital as well as networking opportunities. Being surrounded by other likeminded professionals is a great benefit in attracting new talents, networking or even hiring a potential team, receiving a feedback when you need, socializing in a culture that you fit in well, following an industry development from the very heart of it and discovering brand new ideas in these hubs of innovations that unite creative people.

5 Working Environment

Growing your busineess or being productive once you accomodate yourself in a coworking space depends a lot also on the working environment. You should always visit a coworking space before you lease and be convinced that the environment will allow you to focus and think, to follow conversations with clients and meet deadlines of your projects as well as give you an opportunity to set clear goals for yourself or for your working community.

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