The Processes for Bulgaria Company Formation are Totally Easy!
Bulgaria is a member of the European Union which is proximate to Greece, Turkey, Romania and Serbia, and the Black Sea. As it is on both sides of Europe and Asia, it has many opportunities which can be offered to the local and foreign investors. Bulgaria’s tourism is highly developed as it has become a beautiful destination for holidays. As a result, Bulgaria company formation can be very beneficial as it has an educated labor force. The taxation system is as low as 10%
Different Business Entities in Bulgaria
The various business entities of Bulgaria are:
Private Limited Company
This type of business entity offers 100% ownership to the foreigners. Meanwhile, the shareholders are liable to his/her contribution to the company. This type of business entity typically has one shareholder and one director. The corporation tax rate for this business entity is 10%.
Limited Liability Company
The shareholders come together to form this type of business, and every shareholder is liable to his/her contribution made.
How Business Owners Conduct Bulgaria Company Formation Procedures
To start a business in Bulgaria, one needs to execute Article of Association and Memorandum of Association. Before business registration, it is always better to appoint a director or a board of directors who can manage the company and take business decisions.
The following are the incorporation procedures of business in Bulgaria:
- Select the name of the company – make sure its unique and the name is available for registration.
- Draft MoM & AoA
- Deposit a capital amount in the local bank account of 5,000 Bulgarian Leva which is equivalent to 2,500 Euros
- Obtain the certificate of deposit from the bank, and it is mandatory to deposit at least 70% of the share capital.
- Appoint a director or board of directors for the company
- Register with the district court
- Wait for the publishing of the business registration in the State Gazette.
Other Points to Consider During Bulgaria Company Formation
- A minimum of one shareholder is necessary to start a business in Bulgaria
- Appoint a director for the company; can be local or foreign
- The minimum share capital amount required is 5,000 BGL with a minimum share value of 10 BGL
- The corporate tax is levied around 10%
- Appoint a local representative and set up a local office and submit a lease agreement for the business registration process.
- File annual accounts with Commercial Register, and an auditor must be appointed for most of the companies.
At 3E Accounting United Kingdom, we offer incorporation services which help you to set up a business in Bulgaria as it offers huge potential for boosting business. Contact us today for more information!