|     |
EN BG
  1. Home
  2. blog
  3. Company registration Bulgaria

Category: Company registration Bulgaria

Ultimate Guide to Company Formation in Bulgaria 2025

Mina Boycheva 29/01/2025

Considering launching or expanding your business in 2025? Look no further than Bulgaria. With an anticipated growth surpassing 2%, Bulgaria is not just a location but a forward-thinking choice for businesses aiming at sustainable success.

Why Bulgaria for Your Business in 2025?

Looking ahead to 2025, Bulgaria is a strategic choice for establishing or expanding a business. Beyond its favorable geographical location, the nation has demonstrated a commitment to fostering a supportive environment for enterprises, both large and small. Bulgaria’s unique combination of economic stability, market access, and competitive advantages creates an appealing landscape for entrepreneurs and investors alike.

Overview of Bulgaria’s Economic Climate

Bulgaria’s economic outlook for 2025 is robust, with forecasts projecting sustained growth and stability. This positive trajectory is supported by a series of structural reforms, aimed at enhancing the business environment and encouraging investment. With an economy anticipated to grow by over 2%, Bulgaria is poised to offer promising opportunities for businesses across various sectors. The strategic location of the country serves as a gateway to both European and Asian markets, granting access to over 1.3 billion potential customers. This strategic positioning, coupled with the commitment to economic development, positions Bulgaria as an attractive destination for business ventures in the foreseeable future.

Benefits of Starting a Business in Bulgaria

Choosing Bulgaria for your business setup comes with a plethora of advantages that can bolster both growth and profitability. Here are some key benefits:

  • Strategic EU Market Access: Bulgaria’s EU membership offers businesses seamless access to the expansive EU market, facilitating easier trade and expansion across Europe.
  • Low Corporate Tax Rate: With one of Europe’s lowest corporate tax rates at just 10%, businesses can enjoy higher profit retention, enabling reinvestment and growth.
  • Skilled yet Cost-Effective Workforce: Access to a highly skilled workforce at competitive costs allows businesses to maintain excellence in their operations without compromising on budget.
  • Supportive Business Ecosystem: The government’s proactive approach to reducing bureaucracy and simplifying administrative processes makes starting and running a business more streamlined.
  • Rich Industry Sectors: Bulgaria’s strong sectors, such as automotive, electronics, IT, and manufacturing, offer numerous opportunities for investment and development.

Moreover, the evolving startup ecosystem, characterized by a growing number of incubators, accelerators, and government incentives, reflects Bulgaria’s commitment to fostering innovation and entrepreneurship. The strategic benefits coupled with economic steadiness make Bulgaria not just a choice but a strategic move for businesses aiming for sustainable growth and expansion in 2025 and beyond.

Steps for Company Formation in Bulgaria

Starting a business in Bulgaria is an exciting venture that can open up many opportunities for entrepreneurs. If you’re considering this move, understanding the comprehensive steps for company formation is essential. This guide will walk you through the critical stages, from choosing the right type of business structure to handling the legal requirements and opening a corporate bank account.

Choosing the Right Type of Business Structure

Choosing the appropriate business structure is the first step towards establishing your company in Bulgaria. This decision should align with your business goals, size, and the level of liability you’re willing to accept.

Limited Liability Companies (LLC): A Popular Choice

Limited Liability Companies (LLC) are a preferred choice for many business owners due to their straightforwardness and flexibility. An LLC offers the advantage of protecting personal assets from business liabilities. In Bulgaria, starting an LLC requires a minimum share capital of just two Bulgarian Lev, making it an affordable option for small to medium-sized businesses. Moreover, this type of company allows for a single shareholder, providing simplicity in ownership and decision-making.

Exploring Joint Stock Companies and Partnerships

For entrepreneurs looking to start a larger operation, a Joint Stock Company (JSC) might be more suitable. JSCs allow for shares to be freely traded and have no restriction on the number of shareholders, providing greater capital flexibility. For those interested in a collaboration based on mutual interests, partnerships such as General Partnership (GP) or Limited Partnership (LP) can offer a structured way to share responsibilities, liabilities, and profits according to predefined terms.

Understanding the Legal Requirements

Navigating the legal landscape is crucial for a smooth company setup process in Bulgaria. Being familiar with the required documents and the registration process can save you time and effort.

Necessary Documents for Company Registration

To register your company in Bulgaria, you will need several key documents, including a Certificate of Incorporation, Memorandum and Articles of Association, and Declaration by the Shareholders. Ensuring that these documents are accurately prepared and submitted is crucial for a successful registration.

Registration Process with the Bulgarian Commercial Register

The company registration process involves filing the required documents with the Bulgarian Commercial Register. This process has been streamlined to facilitate quick and efficient registration, which is typically completed within a few days. However, it’s worth noting that all documents must be in order, which sometimes necessitates professional guidance.

Opening a Corporate Bank Account in Bulgaria

Opening a corporate bank account is an essential step for your business to undertake financial transactions. In Bulgaria, this process involves providing the bank with your company’s registration documents and obtaining a Tax Identification Number (TIN). Foreign investors should be aware of the specific banking requirements, which may include the presence of shareholders or directors during the account opening process.

Banking Requirements for Foreign Investors

Foreign investors may encounter additional steps when opening a bank account in Bulgaria. It’s essential to research and prepare for these requirements in advance to ensure a smooth process. Consultation with a local bank or legal advisor can provide personalized guidance based on your specific circumstances.

Starting a business in Bulgaria involves several careful steps, from selecting the optimal business structure that suits your venture’s needs, understanding and responding to legal requirements, to setting up a corporate bank account. With the right preparation and knowledge, you can navigate these steps more confidently, laying a solid foundation for your business’s future success.

Key Requirements for Foreign Entrepreneurs

Starting a business in Bulgaria offers vast opportunities for foreign entrepreneurs, but understanding the legal framework and fulfilling the necessary requirements is essential for a smooth setup and operation. This includes obtaining the proper visa, finding suitable real estate for your business, and navigating through the Bulgarian legal and business landscape effectively.

Obtaining the Correct Visa for Business Activities

For non-EU nationals looking to start or run a business in Bulgaria, securing the right type of visa is the first critical step. Bulgaria offers various visa types, tailored to the diverse needs of foreign entrepreneurs and investors.

Detailed Guide on Short-Stay and Long-Stay Visas

Short-stay visas (Type C) are designed for entrepreneurs who plan to stay in Bulgaria for a period not exceeding 90 days within any 6-month span. This visa suits business visitors who need to make short trips for meetings, negotiations, or exploratory visits.

Long-stay visas (Type D), on the other hand, are necessary for those wishing to stay longer than 90 days, providing a pathway for entrepreneurs to establish, develop, and run their businesses directly on Bulgarian soil. This includes setting up a company, opening a branch office, or investing in existing businesses in Bulgaria. Applicants for a Type D visa must provide documentation proving the purpose of their long-term stay, including their business intention, financial stability, and health insurance coverage.

To streamline the application process and avoid common pitfalls, consulting with legal and immigration experts is highly recommended. They can offer valuable insights into the latest regulations, required documentation, and best practices for successfully obtaining a business visa in Bulgaria.

Real Estate and Office Space Solutions in Bulgaria

Choosing the right location is crucial for any business. In Bulgaria, foreign investors and entrepreneurs can find a variety of office space solutions to fit their needs, ranging from shared workspaces to private offices and commercial real estate.

Urban areas, particularly the capital city, Sofia, offer a dynamic business environment with multiple options for renting or purchasing office spaces. These locations are well-connected by public transportation and offer proximity to local markets, government offices, and business services.

For those interested in real estate investment, Bulgaria presents attractive opportunities in both urban and rural areas. The market offers competitive prices and potential for growth, making it a sensible investment for businesses looking to establish a physical presence in the country.

Working with a local real estate agent or consulting firm can significantly simplify the search for the perfect office or business location. These professionals understand the local market trends and can offer insights into the best areas for investment, considering your business model and target market.

Fiscal Policies: Understanding Taxes and Benefits

In Bulgaria, the fiscal landscape is constructed to support businesses with a series of incentives designed to foster growth and profitability. This section dives deep into the corporate taxation framework in Bulgaria, shedding light on why it’s considered an advantageous venue for business endeavors.

Corporate Taxation Framework in Bulgaria

The corporate taxation in Bulgaria stands out in the European landscape for its simplicity and favorable rates. At the core of its framework is a corporate tax rate of 10% on annual net profits. This flat rate is appealing, especially when compared to the higher tax brackets found in other EU countries. It’s crucial for businesses to understand that Bulgaria’s taxation principle is territorial. This means that income generated outside of Bulgaria by non-residents is not liable for taxation within the country.

Moreover, Bulgaria distinguishes itself by not imposing stamp duties, though it does levy a tax on the purchase of cars, calculated based on the vehicle’s age. When it comes to forming a company, Bulgaria offers various organizational forms, such as private entrepreneurs, collective or limited companies among others, with the limited liability company (OOD) being notably suitable for non-residents engaging in international business.

For businesses with a larger scale, meeting certain thresholds in annual turnover, asset value, or staff numbers triggers additional obligations like mandatory audits. Also, surpassing an annual turnover of 50,000 GBN necessitates VAT registration, with subsequent monthly reporting and payment requirements. Such measures ensure transparency and compliance yet are streamlined to not overly burden companies.

Advantages of Bulgaria’s Tax System for Businesses

Bulgaria’s fiscal policy offers a compelling package of advantages for businesses. The cornerstone of this package is the flat corporate tax rate of 10%, one of the lowest within the EU. This flat rate extends to personal income, making the overall tax liability predictable and manageable. For businesses operating across borders, Bulgaria’s network of double taxation treaties further ensures that income is not taxed twice, alleviating one of the primary concerns of international companies.

  • Low Operational Costs: Beyond the low tax rate, businesses benefit from reduced operational costs in Bulgaria. This includes competitive labor costs, one of the lowest in the EU, complimented by moderately priced social security taxes capped to benefit the employer.
  • VAT Advantages: The value-added tax (VAT) regime in Bulgaria also presents opportunities, with a standard rate of 20% and a reduced rate of 9% for touristic services. Importantly, exports and intra-EU shipments are exempt from VAT, encouraging trade and export activities.

Strategically positioned at the crossroads of Europe and the Middle East, Bulgaria’s geographic locale further augments its appeal to businesses, offering seamless access to key markets. The combination of a simple yet advantageous tax system, low employment costs, and strategic location makes Bulgaria a compelling choice for entrepreneurs and established companies alike seeking favorable conditions within the EU.

Navigating Through Bulgaria’s Business Ecosystem

Exploring Bulgaria’s business landscape reveals an inviting ecosystem ripe with potential for entrepreneurs and investors alike. This Balkan nation has steadily crafted an environment that champions innovation, ease of doing business, and strategic economic growth. The government’s commitment to reducing bureaucratic hurdles and fostering a competitive business climate is evident in its simplified procedures for company registration and operation.

One of the standout features of Bulgaria’s business ecosystem is its alignment with both European and global markets. The country’s EU membership offers businesses a golden ticket to the expansive EU market, blending the perks of an Eastern European location with Western European ties. This strategic position is enhanced by Bulgaria’s robust infrastructural networks, providing seamless logistics and connectivity across continents.

In addition to geographical and systemic advantages, Bulgaria’s emphasis on digital transformation and technological advancement presents a fertile ground for tech-driven enterprises and startups. The government actively supports the tech sector through various incentives, aiming to position Bulgaria as a leading innovation hub in the region.

Market Opportunities and Competitive Advantages

Bulgaria’s market is characterized by diverse opportunities, sprouting from its broad-based economy. Sectors such as IT, tourism, manufacturing, and agriculture are thriving, driven by a blend of domestic talent and international investments. The country’s IT industry, in particular, stands out as a beacon of growth and innovation, facilitated by a highly skilled, multilingual workforce and competitive cost structures. Bulgaria’s educational system, emphasizing STEM fields, ensures a continuous flow of skilled graduates, feeding into the tech sector’s dynamism.

The competitive tax regime, with a 10% flat corporate and personal income tax rate, ranks among the most attractive in Europe. This fiscal policy, when combined with low operational costs, makes Bulgaria a compelling choice for businesses aiming to maximize profitability while accessing high-quality resources.

Furthermore, Bulgaria’s quality of life, vibrant culture, and natural beauty add a unique dimension to its competitive advantages, enhancing its appeal not just as a business destination, but also as a place to live and work.

Investment Promotion and Sector-Specific Incentives

To propel forward sector-specific growth, the Bulgarian government has instituted a range of incentives aimed at attracting foreign direct investment into key areas. Priority sectors such as manufacturing, renewable energy, computer technologies, and R&D enjoy specific benefits, including tax reliefs, grants for innovation, and financial support for job creation. These incentives are designed to bolster Bulgaria’s economic pillars while encouraging sustainable practices and technological advancement.

Investors in these sectors can also benefit from accelerated procedures for obtaining necessary permits and accessing various forms of state aid, tailored to stimulate growth and innovation. By offering these incentives, Bulgaria not only aims to diversify its economic landscape but also to enhance its global competitiveness and attractiveness as an investment destination.

Additionally, Bulgaria is committed to fostering a supportive ecosystem for startups and SMEs, providing them with the necessary tools and resources to thrive. From incubators and accelerators to venture capital funding opportunities, the country is laying the groundwork for businesses at every stage to succeed and expand their reach.

Finalizing Your Business Setup in Bulgaria

Finalizing your business setup in Bulgaria marks a significant milestone in your entrepreneurial journey. This stage involves not only ensuring that all legal and regulatory necessities are addressed but also preparing your business to seamlessly integrate into the Bulgarian market. Attention to detail during this final phase can significantly impact the smooth operation and long-term success of your venture.

Maintaining Compliance and Navigating Bulgarian Business Culture

Maintaining compliance with Bulgarian laws and regulations is fundamental to the longevity and prosperity of your business. This includes staying up-to-date with any changes in legislation that may affect your operations. Regular consultations with legal and financial advisors can simplify this process, making sure your business adheres to all local requirements.

Understanding and navigating the cultural nuances of the Bulgarian business landscape is equally important. Bulgarian business culture emphasizes relationships and trust, so investing time in building strong connections with local partners, suppliers, and customers can yield significant advantages. Being aware of cultural etiquette, such as the value placed on formalities and the importance of face-to-face meetings, can further enhance your business interactions.

  • Legal Compliance: Regularly review and adapt your business practices to comply with Bulgarian law, including tax obligations, employment laws, and industry-specific regulations.
  • Cultural Integration: Embrace the local business culture by engaging sincerely with partners and clients and respecting Bulgarian business customs and traditions.
  • Professional Advice: Establish a rapport with advisors proficient in Bulgarian law and business practices. Their insight can help navigate any potential hurdles and streamline your business operations.
  • Community Engagement: Actively participating in local business associations and events can enhance your understanding of the market and foster valuable relationships.

In summary, finalizing your business setup in Bulgaria with attention to compliance and cultural integration sets a solid foundation for your venture. By adopting a proactive approach to legal requirements, building strong local relationships, and securing your operations against cyber threats, your business is well-positioned for success in the Bulgarian market.

FAQs: Everything You Need to Know About Setting Up a Business in Bulgaria

Can I Own 100% of a Bulgarian Company as a Foreigner?

Yes, as a foreign investor, you can fully own a company in Bulgaria without the need for local partners. The country provides a conducive environment for foreign investments by offering equal legal rights to both local and foreign-owned businesses. You have the option to own 100% of the share capital in your company, be it a limited liability company (EOOD or OOD), a joint stock company (EAD or AD), a branch, or a commercial representative office. Starting a company can be initiated with just one natural or legal person who may also serve as the manager. This level of flexibility and equality in business establishment makes Bulgaria an attractive destination for international investors seeking to tap into the European market.

What Are the Annual Compliance Requirements for Bulgarian Companies?

Upon successfully establishing a company in Bulgaria, there are several annual compliance requirements that need to be met to ensure your business remains in good standing. These include:

  • Insurance Procedures: It’s important to initiate insurance for company partners and managers as part of their social security and health insurance contributions.
  • Financial Statements and Audits: Companies must prepare and submit annual financial statements. Depending on the size and type of your business, an independent financial audit may also be required.
  • Bank Account Management: Maintaining a company bank account is crucial for handling the financial transactions of the business efficiently.
  • Personal Data Protection: If your company processes personal data, you must register as a personal data administrator to comply with Bulgarian and EU data protection regulations.
  • VAT Registration and Invoicing: Companies should register for VAT if their annual turnover exceeds the stipulated threshold. Proper invoicing practices must also be maintained as per Bulgarian laws.
  • Employment Regulations: To employ non-EU nationals, a company must first employ a certain number of Bulgarian or EU citizens, adhering to the labor laws and regulations.

These compliance measures reflect the legal and financial responsibilities of operating a business in Bulgaria. Adherence to these regulations not only ensures the legal operation of your company but also contributes to the smooth running and sustainability of your business venture in Bulgaria.

Charting Your Success in Bulgaria: Next Steps After Incorporation

Once your business is officially incorporated in Bulgaria, the journey towards achieving your company’s goals begins. The focus shifts to strategic planning and positioning your business for long-term growth. This phase is crucial as it involves setting clear objectives, identifying market opportunities, and developing a robust strategy to guide your enterprise towards sustainable success.

Strategic Planning and Long-term Growth in Bulgaria

Strategizing for your business involves more than just forecasting; it’s about creating a detailed roadmap for achieving your aspirations. It starts with understanding the Bulgarian market landscape and the unique opportunities it presents. The following steps can help lay the foundation for a thriving business in Bulgaria:

  1. Market Analysis: Conduct an in-depth analysis of the Bulgarian market to identify trends, customer needs, and competition. This will help you tailor your products or services to meet local demands effectively.
  2. Setting Clear Goals: Define clear, measurable objectives for what you want to achieve in the short and long term. Whether it’s expanding your customer base, launching new products, or reaching specific revenue targets, having concrete goals will focus your efforts.
  3. Building a Local Network: Establish relationships with local businesses, industry associations, and chambers of commerce. Networking is key to unlocking doors and fostering collaborations that can propel your business forward.
  4. Adapting to Local Culture: Embrace the rich culture and business practices within Bulgaria. Understanding and respecting local customs can significantly enhance your brand’s reputation and acceptance.
  5. Investing in Talent: Bulgaria boasts a skilled workforce; invest in hiring and training local talent. A motivated and skilled team is your most valuable asset in driving business growth.
  6. Monitoring and Evaluation: Regularly assess your strategies and performance against your objectives. This allows you to make informed adjustments to stay on track towards your goals.

Long-term growth in Bulgaria is not just about expanding your business footprint; it’s about building a legacy that contributes positively to the local economy and society. By focusing on strategic planning and leveraging Bulgaria’s dynamic environment, you can steer your business to new horizons of success.

Read More

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?
How to scale your service in Bulgaria?
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.

Read More

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.

Read More

Do You Need Our Payroll Services?

Mina Boycheva 25/03/2016

Bulgaria is а well-known destination for outsourcing services already. The country is known for its wide range of advantages that it offers to the local and the international investors. Prior to starting a business in the country, those investors need to decide about the type of business they will need to set up. According to the Bulgarian laws, citizens from abroad have the right to establish a business in the country in the form of sole proprietorship, a representative office, a partnership, a branch.

The team behind SofiaOffices company has been on the market for many years and is quite aware that the businesses in Bulgaria have diverse payroll needs. That is why the company started providing fast and accurate online payroll services to those clients that need them. Bulgaria has strong market potential and attracts the interest of many investors. Just like the rest of the European countries, it has however its own employment legislative subtleties. If wisely observed, these regulations ensure that your outsourced workforce in Bulgaria is nicely managed and paid accordingly. StaySofia has the capacity to provide employment and payroll outsourcing services on time, as well as business support.

The team behind SofiaOffices company has been on the market for many years and is quite aware that the businesses in Bulgaria have diverse payroll needs.

In order the work to be done fluently, every business company is in need of administrative and payroll services. This is a boring job (yeah, we know) that brings no profit (but is associated with expenses instead). Yet, someone should do it, so it is always better to leave that task in our hands and focus on what you do best. Among the administrative services that we provide is the preparation of all documents associated with the start of the employment process of every employee, including the registration of the labor contracts in the National Revenue Agency, and all other documents that concern the change in the employment status, the retirement, the cash benefits and the social assistance documents. The maintenance of the employees’ records in perfect condition is also part of the task.

The payroll services that SofiaOffices cover include all important aspects that concern the payment of the employees in Bulgaria. These include the process of the variable monthly payroll information, calculation of the vacation days and sick leaves, changes in the wages, method of remuneration, working positions, calculation of the monthly gross and net wages, social and health insurances, income tax, etc.

Payroll Services in Bulgaria Milestones:
• Minimum wage – 210 EUR
• Employer’s taxes – 30.7%
• VAT – 20%
• PIT – 10%
• Annual paid vacation – at least 20 days
• Payroll currency – BGN, Euro, Dollar
• Overtime – Working overtime is principally not allowed by the Labour Code) with exceptions only under tight premise. The extent of overtime must not exceed 6 h (night work 4 h) per week, 30 h (night work 20 h) per month and 150 h per year. During two consecutive days no more than a total of 3 hours (night work 2) overtime are allowed. The premiums amount to minimum of: – 50% for work on regular working days; -75% for work on days of rest (Sundays); – 100% on statutory holidays.

Read More

Company registration and opening of an office in Sofia city

Mina Boycheva 31/05/2013

Investors who want to start their business in Bulgaria and find its Sofia a great destination for outsourcing their business will be pleased to find out the various positive aspects of Sofia city. The capital of Bulgaria provides several very good office buildings of the highest class A, as well as numerous professionals that can help them with consulting and company registration, financing and taxation process. Investors who want to register their company in Sofia will be able to choose from joint stock companies, limited liability companies and sole trader enterprises, depending on their purposes and intentions. They will have to complete a pack of documents, prepared according to the legislation of Bulgaria. The company registration includes reservation of a company name, opening of a company bank account, signing of power of attorney, registration at the National Insurance Institute, National Statistical Institute, Local Tax Authority and the Commercial Register.

Once the company is registered, then comes the sweet but also hard part and that is to find a suitable Sofia office that corresponds to the business intention and needs. In the city of Sofia could be found excellent offices that correspond to all requirements for class A office premises.

Once the company is registered, then comes the sweet but also hard part and that is to find a suitable Sofia office that corresponds to the business intention and needs. As mentioned above, in the city of Sofia could be found excellent offices that correspond to all requirements for class A office premises. Most of the Sofia offices are organized in the Business Park Sofia in Mladost District, along Bulgaria Blvd. and Tsarigradsko Shousse Blvd., as well as in the center of the city and in Lozenets District.

Read More

The taxes applied on the registered companies in Bulgaria

Mina Boycheva 30/05/2013

Whether renting an office in Sofia, the rest of the big cities like Varna, Plovdiv and Bourgas, all companies that are registered in Bulgaria and operate here should work according to the regulation of the Bulgarian law and legislation system. At the same time, they have to follow the European laws as well, as the country is a member state of the European Union. The managers of all companies that are registered in Bulgaria should know that the tax management process is important part of the accounting and the financial activity of every company. It has direct connection with the profit and the investments that the company can do.

Whether renting an office in Sofia, the rest of the big cities like Varna, Plovdiv and Bourgas, all companies that are registered in Bulgaria and operate here should work according to the regulation of the Bulgarian law and legislation system.

Companies that are registered and operate on the territory of Bulgaria should use a company providing tax accounting services or should hire own accountant. The services mentioned include the modeling of the tax rate, the handling of the tax documentation, the tax assistance and the tax analysis, but also a forecast for the income tax, which is important. Other aspects that should be covered include analysis of data, evaluations of tax returns, tax liability reduction planning, VAT book keeping, etc. The companies being registered and operating in Bulgaria, which have an office in Sofia or elsewhere or do have a car, should also pay immovable and movable property taxation. The companies that are registered in Bulgaria and operate here should further cover national insurance for the employees.

Read More

Bulgaria is appealing for the outsourcing companies

Mina Boycheva 27/12/2012

For several years already Bulgaria keeps on being quite appealing for the outsourcing companies. This sphere of business in Sofia and the rest of the big cities in Bulgaria is generating significant income for the international companies that have decided to make this step. According to the British newspaper “Financial Times”, this sector employs more than 15 000 people in the country. Although not as famous outsourcing destinations as the Philippines or India for example, Bulgaria and the city of Sofia in particular attract investors due to several factors. Among them are the good location, the professional and well trained staff and the relatively low wages. Many popular and large international companies have already opened and successfully run their outsourcing centers in Bulgaria. Among the leading ones are such solid companies like Hewlett-Packard and IBM, Coca-Cola, as well as Telus – the Canadian company, which bought part of the Bulgarian company CallPoint New Europ.

Many popular and large international companies have already opened and successfully run their outsourcing centers in Bulgaria. Among the leading ones are such solid companies like Hewlett-Packard and IBM, Coca-Cola.

Outsourcing sector in Sofia is open to anything that will make the work easier and the employees – satisfied. The goal is for the work to be done and the customer to receive what one paid for. The outsourcing companies, like all other companies, have certain positions that do not require the employees to work from the office. The outsourcing sector welcomes this idea and this opportunity and even encourages some employees to work from home and visit the office once or twice a week. In this way they save time and money for travelling. These outsourcing companies also have open positions to part time employees and are happy to hire people with disabilities. After all, we all live in an era where one needs a computer, a telephone and a good Internet connection in order to do one’s work. The outsourcing companies appreciate the general knowledge of their employees and their great professionalism, and cherish the knowledge of different languages. It is this knowledge of languages make Bulgaria stand out from the other countries that are destinations for outsourcing. That is why we have to put our emphasis on this. In conclusion, Bulgaria is expected to attract many new outsourcing companies in the future. Young people will have the opportunity to benefit from the knowledge and skills that they have, to learn how to take risks and to set the basis for their career growth.

The outsourcing companies, like all other companies, have certain positions that do not require the employees to work from the office.

The outsourcing sector is driven by the state in many direct and indirect ways. These include infrastructure improvements and tax exemptions, logistics support and training of the personnel. Those major players who wish to register a company in the country and operate their business from Sofia are further encouraged to do so by the relatively low wage costs. In an interview that was published by Economy.bg, Mr. Joseph Lazarus, the manager of IBM Global Delivery Center Bulgaria, stated that at present Bulgaria provides the right balance of talented and ambitious professionals with experience and reasonable costs. The big companies that decided to outsource their business to Bulgaria have invested a lot of energy and money here in order to expand their business and offer competitive products and services. Big obstacles in the expansion of their business are the costs and taxes they have to pay, but this is a sphere that could be interfered with government's changes.

Read More

2013: what to expect from the office market

Mina Boycheva 21/12/2012

Now that year 2013 is ahead of us, many are wondering what to expect from the office market in the next twelve months. According to the research, the main driving force will most probably be the foreign companies which work in the production and services sphere, as well as the outsourcing companies. These will most probably be registered companies in Bulgaria, which will pay taxes here and will hire local employees. The big international companies are focused on the optimization of their expenses and that is why they will keep on searching for other ways and countries to make business. These will be destinations, where the political situation is stable, the tax levels are low and the sums for salaries are affordable for them to cover.

The big international companies are focused on the optimization of their expenses and that is why they will keep on searching for other ways and countries to make business.

This tendency has already started in Bulgaria and will be valid for the next year as well. Bulgaria, and especially its capital Sofia, as well as other of the major cities like Plovdiv, Varna and Bourgas, will put efforts into creating corporate business centers, which will be modern, with the required facilities and prestige city address. These business centers will be of the highest class A and will answer the requirements of the international companies that plan to operate here. These will be IT and HR companies, accounting companies, logistic companies, express services, call centers and companies that offer different administrative activities and services. Besides the already existing outsourcing companies, there will be new ones that will emerge on the market and this will lead to demand for new working places in modern offices. Big investments are also expected in the industrial sector, which will be stirred by companies that want to relocate their production to Bulgaria and reduce their expenses made in the process of production.

Besides the already existing outsourcing companies, there will be new ones that will emerge on the market and this will lead to demand for new working places in modern offices.

The rented offices in Sofia during the first nine months of 2012 amounted to 71 150 sq.m, which is with 50 % more if compared to the same period the previous year and with almost 18 % more when compared to year 2010. In year 2012 the tendency of the big companies to expand their business to Bulgaria continued. Companies like Coca-Cola Enterprise and Ingram Micro are just two of the companies that set the example. The bank sector was also busy moving offices. Two of the bank institutions, Alpha Bank and Post Bank moved to new head offices in modern office buildings of their own. In general, the companies are looking for office buildings of the high class, with the required facilities. Some of the companies are searching for top locations in the city center, others are looking for the business zones along “Bulgaria” Blvd. and “Tsarigradsko Schousse”, while others are considering the new office building “Sofia Airport Center”. The rental levels are varying between 9 and 15 Euro per sq.m., depending on the location and the class of the office building. According to the statements of the experts and their prognoses, the offices that will come into operation in year 2013 will amount to almost 28 000 sq.m.

Read More

More investments in Bulgaria during 2012

Mina Boycheva 19/12/2012

According to the recent analyses of the National Statistics Institute and the leading media, the business climate in Bulgaria is good and faces an increase of almost one percent in November compared to its level in October. The expectations of the managers in the industry sphere and in the sphere of services are for an increase with 3.5 per cent during December. A great part of the contractors plan to freeze the prices for the next three months. In general, Bulgaria and especially Sofia city keep their stable positions when the investment in office centers and trade buildings is concerned. There are several reasons for that. Bulgaria is in stable economic position and political situation. The country is also a member of the European Union. All these premises lead to an increase of 4.3 % in the investments during year 2012 compared to the investments made during the previous year 2011. The prognoses for year 2013 are for an increase in the investments made in the light and heavy industry including the processes of mechanization, automation, new production technologies, etc. The tendencies are for registration of companies in Bulgaria which trade with the European Union, but also with Turkey and China, Russia and USA, Serbia and Macedonia. The direct investments made in the country during the first nine months of the year are estimated at almost 972 million Euro, compared to the 712 million Euro for the same period in 2011. Great deal of investments was made from registered companies from The Netherlands, Switzerland and Russia.

According to the recent analyses of the National Statistics Institute and the leading media, the business climate in Bulgaria is good and faces an increase of almost one percent in November compared to its level in October. The expectations of the managers in the industry sphere and in the sphere of services are for an increase with 3.5 per cent during December.

In August 2012 it became clear that the Finance Minister of Bulgaria, Mr. Simeon Dyankov, stated that there will not be an increase in the value added tax in the end of 2012. In his statement however, he added that such a change is possible by the end of 2013. The Finance Minister also stated that our country does not approve the European Union tax harmonization and will not support it. This is so, as the country needs its flat tax, which amounts to 10 %, in order to be stable and to have an economic growth. Actually, the plans of this minister are for the flat tax to remain for the next ten or even fifteen years. The predictable policy of the government, as well as the stable political situation, make the country look quite appealing to the foreign investors. Many big companies are now looking towards Bulgaria and plan to outsource their business here or at least certain specific branches of their business. The good news is that the country can offer them stability and excellent infrastructure, as well as reasonable tax policy and option to register companies in Bulgaria. The other assets of the country, which are concentrated in the capital Sofia are the talented and experienced professionals, as well as the business centers of the highest class, which enjoy central and prestige locations and business addresses.

Read More

Responsible business in Sofia city

Mina Boycheva 17/12/2012

The companies which decided to outsource their business to the capital of Bulgaria and those foreign citizens who registered companies in Sofia are obliged to obey the legal requirements of the country. They have to be strict with the laws and to be responsible for the welfare of their personnel, just like all the other companies formed by Bulgarian citizens do. The basic requirements for employment relations in the country are arranged in the Labor Code. Here are also set the regulations that concern the working time and the breaks, as well as the holidays. All investors who decide to register a company in Bulgaria and hire employees should be aware of these rules and regulations. There is also the so called Social Security Code, which covers the issues with social security in case of general sickness, maternity leaves, cases of occupational illness and different accidents at work, unemployment situation and so on.

The companies which decided to outsource their business to the capital of Bulgaria and those foreign citizens who registered companies in Sofia are obliged to obey the legal requirements of the country.

Absolutely compulsory in Bulgaria are the health insurance and the social security. There is also an option for supplementary health insurance and social insurance. The amount due for social and health insurance depend on the income of the employees and are covered by the employers. In addition to that, employers are the one to provide safe and healthy environment that will be pleasant for the people who will work there. The modern office buildings are arranged in accordance to these requirements and usually the registered companies have just to rent one of the office units to secure the requested healthy and safe environment. Today in the capital Sofia are to be found many modern business centers, special office centers and separate offices in commercial and residential blocks. There are a few business areas that are quite popular among the companies thanks to their location and these are the administrative zone of the city center, Lozenets district, the Business Park Sofia placed in Mladost district, and of course the new business area along the southern part of the ring road.

Besides registering a company in Bulgaria and finding a safe office with healthy working conditions, the employers have to follow a few social rules for equal opportunities of the employees, non-discrimination and gender equality.

Besides registering a company in Bulgaria and finding a safe office with healthy working conditions, the employers have to follow a few social rules for equal opportunities of the employees, non-discrimination and gender equality. There is a so called Discrimination protection low, which gives the standards and protects the right of individuals to work and secures for equal working conditions and equal payment for same work done. It also secures equal opportunities for career development and training. Foreign investors who have formed companies in Bulgaria should also be aware of the Disabled People Integration Law. According to that law, the employers who offer job to disabled people will be stimulated by the government. At the same time, the employers should be obliged to adapt the working environment for the people with special needs. In case of disputes between the employer and the employees working in the registered company shall be applied the Collective Labor Resolving Disputes Law. It sets the methods for solving the collective disputes between the company employer and the employees. The disputes might be regarding the working conditions or the insurance conditions. The disputes should be arranged through a process of mediation or arbitration by the organizations of the employers and the trade unions, as well as by the National Arbitration and Conciliation Institute.

Read More