Company formation in Bulgaria: Make clever use of the enormous advantages

Bansko

There are numerous good reasons to set up business in Bulgaria: In particular, the fact that the country was admitted to the European Union in 2007 provides a secure foundation. However, there are some particularities to be taken into account locally, which make professional support in founding and establishing your business worthwhile. Here is a compact overview. 

Profile: Republic of Bulgaria
Capital: Sofia
Area: about 111,000 km²
Population: about 7 million
Currency: Lev (BGN) – 1 BGN equals about 0.51 Euro

The tax framework 

One of the most important arguments: you can benefit from the special tax legislation. In the Bulgarian Republic, a flat tax applies, i.e. regardless of the amount of your income, a uniform tax rate of 10% is applied for income and corporate tax. The situation is similar for liquidation shares and dividends – here only 5% is applied as withholding tax. 

Special feature:
Should you wish to establish a manufacturing business in the Balkan state, focusing on a region where high unemployment is recorded, you can reduce the tax burden to almost 0.

The infrastructural framework 

At the same time, you can expect low wage and non-wage labor costs, even though the population’s level of education is high. The situation is equally favorable in terms of purchase and rental prices for commercial properties and energy costs. The infrastructure leaves nothing to be desired – right down to the fast Internet that is available here. In summary, in the Bulgarian Republic you will find optimal employment and production conditions, so that you can reduce the running costs of your business as well as your liability risk.

Convenient selection of suitable forms of business 

Depending on your specific business concept, you can choose from one of the following business forms:

. ООД (OOD) – corresponds to the limited liability company, i.e. a limited liability company, which can also be established as an EOOD by one shareholder. Minimum share capital: 2 BGN

. АД (AG) – corresponds to the joint stock company, which can be established with a minimum capital of BGN 50,000.

. КД (KG) – corresponds to the limited partnership, which is a mixture of unlimited and limited partners.

. с-ие (OHG) – corresponds to the OHG as an association of several partners, each of whom is personally liable.

. Едноличен Търговец – corresponds to the registered merchant and can be used for all commercially managed commercial enterprises.

Especially the OOD or EOOD are considered as fully-fledged structures recognized within the EU. You would not even have to travel to the Balkan state to set up your company – our professional office service can ensure this for you, as well as the representative office, should you wish to be involved here but not permanently reside in the country. Of course, you can be sure that your business will be conducted in the Bulgarian Republic as you wish, so that there will be no problems with regard to tax liability. 

Alternatively, use a reputable business address to put your international business on a solid footing: Since we cooperate with excellent lawyers and tax advisors, you can rely on correct handling. Your Bulgarian company is therefore just as capable of acting in Europe as a German company. It is best to discuss your goals with us personally – we will find the appropriate solution and implement it in a first-class manner.

The establishment of the company – fast, professional and cheap 

In the meantime, we have gained profound experience in this field, so that we accompany our clients from A to Z during a foundation. Of course, you can rely not only on customer friendliness and high quality, but above all on discretion. The procedures are so well-rehearsed that you can expect a quick completion at a reasonable price. This service is used by a wide range of companies – from small entrepreneurs to solid companies and private individuals. 

The Bulgarian Republic is a suitable location in numerous relations, especially the benefits that you can take advantage of with your company are weighty arguments: companies today have to act globally, can optimize the tax burden and at the same time benefit from the comfortable banking laws in the Balkan republic. Create the basis for an interesting growth – we stand competently and professionally at your side. 

Individual tailoring of the company structure 

Beyond the uncomplicated start-up, you can make your organization advantageous: For example, if you outsource part of your business processes, you can significantly optimize costs – your expenses will decrease, your profit will increase and your company can grow strongly. Of course, you can discuss your plans with us and our cooperation partners. Together, we will develop a viable strategy and support you during implementation. 

In view of this enormous potential, setting up a business in the Bulgarian Republic is an option for a wide variety of projects. In particular, freelancers who work from home and are not fixed in terms of their place of residence will find optimal conditions here. Experience has shown that programmers and web designers, copywriters, translators, editors and bloggers, as well as traders and many other people active on the Internet, are interested in such an alternative. In any case, the involvement of a professional service provider on site is recommended in order to successfully master all upcoming challenges – rely on our experience.

Establish a company successfully and correctly 

In order to make the most of all aspects of Bulgarian law and to take into account the interests of your company and its shareholders, we involve experienced local lawyers and tax advisors in Sofia in the formation and organization of the company. This way we can ensure that all steps are completed in compliance with the law. If you decide to establish your company in another location in the Bulgarian Republic, this is not a problem: we cooperate with specialists in all regions of the Balkan Republic. Of course, we will be happy to explain our procedures to you in detail – just use our free call-back service.

As an innovative service company, we serve a wide range of services, but we also know exactly where the boundaries lie: We do not provide legal or tax advice ourselves. For this purpose, we call on the services of appropriate specialists who ensure that the company is set up correctly and in line with your ideas and plans. The most important benchmark for our work is your satisfaction – in every respect. If you are considering establishing a company or relocating to the Bulgarian Republic, it would be best to contact us right away – we will be happy to take care of your concerns.

The important preparation: company foundation made to measure 

It makes sense to prepare a company foundation comprehensively: On the one hand, of course, it is about the business idea itself, but on the other hand, it is also about the realistic calculation of costs and consideration of impassable events that can affect a project. Whether you initially set up a sideline business or rely on the company in the Bulgarian Republic as a main source of income, the specialists networked with us will advise and accompany you professionally on your way – turn to us with confidence. 

Professional office service in Bulgaria – we are your partner 

You can relocate your company’s headquarters to the Bulgarian Republic just as smoothly as you can rely on a renowned office address as a contact point for all transactions that arise – the range of possibilities is enormous: If you are on the road a lot, a competent office service can reduce office and personnel costs to a minimum, for example, without the reputation of your company suffering. Mail is forwarded quickly to a destination specified by you – alternatively, items can be opened, scanned and sent to you immediately or handled directly. So you won’t miss any important information, even if you’re traveling. 

Just as important from our experience is the availability by telephone, which you can also ensure with our office service: Your business partners can reach us during the agreed business hours without you having to hire extra staff. Of course, we will inform you immediately about all incoming telephone calls, so that you can devote yourself undisturbed to your business. This service not only optimally supports start-ups, but also companies that work nationwide. 

So we accompany you far beyond the establishment of your company. As a service company with a closely knit network of specialists in tax and legal advice, we are happy to ensure with our office service that your company runs smoothly when you are on the road. The best thing to do is to discuss your plans with us at your leisure so that we can make you a suitable proposal – simply ask for our expertise.


INFORMATION ABOUT THE TAX SYSTEM IN BULGARIA


Corporate income tax – 10% of net profit per year;
Dividend tax 5% – only in case of real payment of dividends;
VAT – 20%. Intra-community supplies and exports are exempt from VAT;
Personal income tax 10%. Dividends are tax-free if they are distributed among the shareholders and if the dividend tax of 5% has been paid.

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