Company Formation in Bulgaria
Top 5 Advantages of Bulgaria
- Member of the EU
- Low tax rate
- Minimum share capital is 1€
- Perfect to start a new business in the EU for foreigners
- Everything can be done online
How long does it take to register a company in Bulgaria?
- 4-8 working days
- Around 2 weeks if everything is done remotely
What are the steps to register a company in Bulgaria?
The registration process of a company in Bulgaria is very simple. The experts of LegalBison will assist you throughout every step of it:
- Initial consultation and agreement
- Payment of the full invoice
- [IF REMOTELY]: Notarization of POA by client
- Preparation of registration documents
- Document signed at the notary
- Official register validity: immediately
How high are the corporate income tax in Bulgaria?
- The corporate income tax in Bulgaria is 10%
- For dividends and distributed profits, the withholding tax applied is 5%
What Double-tax treaties has Bulgaria?
Many countries have bilateral conventions to avoid double taxation and prevent fiscal evasion. Bulgaria participates in OECD's Automatic Exchange of Information (AEOI).
Albania, Algeria, Armenia, Austria, Azerbaijan, Bahrain, Belarus, Belgium, Canada, China, Croatia, Cyprus, Czech Republic, Denmark, Egypt, Estonia, Finland, France, Georgia, Germany, Greece, Hungary, India, Indonesia, Iran, Ireland, Israel, Italy, Japan, Jordan, Kazakhstan, Korea, Kuwait, Latvia, Lebanon, Lithuania, Luxembourg, Macedonia, Malta, Moldova, Mongolia, Morocco, Netherlands, Norway, Poland, Portugal, Qatar, Romania, Russia, Singapore, Slovakia, Slovenia, South Africa, Spain, Sweden, Switzerland, Syria, Thailand, Turkey, Ukraine, United Arab Emirates, United Kingdom, United States of America, Uzbekistan, Vietnam, Yugoslavia, Zimbabwe
Status: Summer 2021
Without VAT number
- Your company will not be eligible to receive VAT refunds, which means everything bought is 20% more expensive (important: B2B payments between two VAT exempt companies are not more expensive)
- Your company will not have to file monthly tax returns (prerequisite: no one receives a salary), which means low costs
With VAT number
- The company will be eligible to receive VAT refunds, which means you can make use of the reverse-charge mechanism
- Monthly tax returns have to be filed, even if no transactions occur
- Every legal person can register for VAT in Bulgaria
- Registering for VAT is compulsory if a company's turnover reaches 50,000 BGN (25,600 EUR as of December 2020)
- Registration for VAT can be filed online without specific prerequisites
Before we help you to apply for a VAT number you should carefully think about the advantages and obligations that go along with it. To register as a VAT payer might be either voluntary or obligatory, depending on the turnover.
- Do you want to buy a ready-made company or start a new one?
- Do you want a sole proprietorship or a regular LLC with at least two members?
- What is the planned share capital for your company?
Speak to our consultants to get a free consultation and guidance on how to choose the best jurisdiction based on your business model.
Documents to provide
- Passport copies (a scan) of shareholder/s and director/s, also beneficiary owner if applicable
- A Power of Attorney (in case of a remote company registration)
- Certified company documents (in case at least one of the shareholders is going to be a foreign company)
Information needed to get started
- 3 options of your desired name for the company and a company contact email address
- Names, addresses and emails of all shareholders and board members
- Short description of your company's activity
- The whole incorporation process can be conducted remotely. No travel necessary. Notarization of documents is necessary
- A Power of Attorney (POA) from (all) partners/shareholders is needed
- The POA is sent to you by us based on the services you want
- You have to certify the POA by a notary and in some cases legalize it by apostille (some countries need full legalization)
- Once you have the POA on your hands, we double-check, and you send us the original form (physical document!) via courier to our address
- Bulgaria is part of the Hague Convention of the Apostille
Accounting and auditing
- An annual tax return shall be filed every year, no more than 3 months after the end of the year (by 31st of March of the year +1)
- Along with the tax return, the Ministry of Finance expects an annual activity report, including all the financial statements
- Accounting is therefore mandatory and books shall be kept at all time within the Bulgarian registered office of the company
What are the residential requirements in Bulgaria?
- There are no restrictions for foreigners to be directors or hold 100% of a company in Bulgaria
- An address in Bulgaria is necessary to register the company
LegalBison offers help with all of the above requirements. We assist and are local on ground. Speak now for free with one of our consultants to get your business started.
FAQs about doing business in Bulgaria
- Fast incorporation
- 0% tax
- Everything remote
- Very business friendly
- Competitive tax rates
- A growing EU economy
- 0% Tax if undistributed
- A fast growing EU state
- Tech savvy workforce
- Ideal EU jurisdiction
- 5-10% tax
- Fast and cheap process
- 0% Corporate Income Tax
- Cheap and fast process
- No travel needed