What types of companies are there in Bulgaria?
Bulgaria, like many other countries, offers a variety of different forms of corporate law, each with its own characteristics, advantages and limitations. Choosing the best form of company depends on many factors, including the size of the business, the amount of planned investment, the goals of the owners and the degree of personal liability required. In this article, we will look at the main types of companies offered in Bulgaria and their main features.
Self-employed persons (ET – “Ednolichen trgovets”)
The sole proprietor is the simplest and most accessible form of business. This form is suitable for a single owner and does not require the formation of authorized capital. Its main disadvantage is unlimited personal liability for the debts and obligations of the business.
Partnership (SD – “Sbiratelno druzhestvo”)
A partnership is a business that involves two or more people who carry on a business under a common name and who have unlimited joint liability for the company's debts. This form is suitable for small family businesses or partnerships where a high level of trust between the partners is essential.
Limited Partnership (KD – “Komanditno druzhestvo”)
In a limited partnership, there is at least one limited partner (investor), whose liability is limited to the size of his investment, and one unlimited partner (managing partner), whose liability is unlimited. This type of company is suitable for projects that need to attract external funds, but at the same time want to maintain control over management.
Limited Liability Company (OOD – “Oodruzhestvo s limitaena razgovornost”)
The OOD is the most popular form of legal entity in Bulgaria. It provides limited liability to the founders (up to the amount of their investment contribution) and can be created by one or more persons. The authorized capital is divided into shares, which makes the OOD a suitable option for small and medium-sized enterprises.
Joint-stock company (hereinafter referred to as "joint-stock company")
A joint stock company is suitable for larger businesses with a large number of investors. It requires a minimum authorized capital and can issue shares, which are publicly traded on an exchange. An AD provides shareholders with limited liability, which makes it attractive for large investment projects.
Cooperative (cooperative)
Cooperatives are usually created to work together in agriculture, production or service delivery. They can be organized by a group of individuals or legal entities who pool their resources to achieve common economic goals. Cooperatives are regulated by special legislation.
Conclusion
The legal entity form you choose in Bulgaria depends on many factors, including the size and objectives of your business, the level of liability you require, and the need for investment. Each form has its own unique characteristics and requirements, so it is important to carefully evaluate all options and, if necessary, consult with a legal expert to select the form that best suits your business in Bulgaria.
Bulgaria corporate tax rate table for 2025:
| Tax type | Tax rate | Remarks |
| Corporate Income Tax | 10% | The standard tax rate was maintained, but a minimum tax rate of 15% was introduced for companies that were among the lowest taxed in the world. |
| Value Added Tax (VAT) | 20% | Standard rate. Reduced rates of 9% and 0% apply to certain categories of goods and services. |
| Personal income tax | 10% | Apply a single tax rate to all income. |
| Social taxes | 32.7% – 33.4% | Social security and health insurance contributions are borne by employers (18.92% – 19.62%) and employees (13.78%), respectively. |
| Dividend Tax | 5% dividend tax | Applies to dividends paid to residents and non-residents. |
What is the size of the authorized capital of a Bulgarian company?
The size of the authorized capital is one of the key factors when registering a company in Bulgaria, as it may affect the choice of legal entity form, as well as obligations and business opportunities. Authorized capital is the total amount of money or assets provided by the founders or shareholders at the time of company formation. This amount serves as a guarantee for the interests of creditors and determines the minimum financial threshold that the company must maintain. In Bulgaria, the size of the authorized capital varies depending on the company legal entity form.
Limited Liability Company
Minimum authorized capital: 2 lev (approximately 1 EUR).
OOD is the most popular form of business in Bulgaria due to its flexibility and limited liability of the founders (not exceeding the amount of authorized capital they invested).
Joint Stock Company (AD)
Minimum authorized capital: BGN 50,000 for a Closed Joint Stock Company (CJSC) and BGN 100,000 for a Public Joint Stock Company (JSC) (approximately EUR 25,000 and EUR 50,000, respectively).
AD is suitable for large enterprises that can attract investment by issuing shares.
Limited Partnership (CD) and Solicited Partnership (SD)
For these types of enterprises, Bulgarian legislation does not provide for a minimum size of authorized capital.
The founders are personally liable for the obligations of the company. This liability is unlimited for partners in a partnership and limited for limited partners in a limited partnership.
cooperative
Minimum Authorized Capital: Determined by the founders and may be changed in accordance with the cooperative's Articles of Incorporation.
Cooperatives are usually created to carry out joint activities in the agricultural sector, production or service provision, with equal contributions from the founders.
Importance of Authorized Capital
Authorized capital is not only the financial foundation of the company at the time of its establishment, but also an indicator to creditors and partners, reflecting the financial stability and sincerity of the founders. In addition to meeting the minimum authorized capital requirements, the company also needs to consider the needs and possible risks of future operations to ensure that the capital level is sufficient.
Conclusion
In Bulgaria, the size of the authorized capital depends on the company's legal entity form and can range from a symbolic amount to a significant investment for a joint stock company. Choosing the optimal size of the authorized capital requires a careful analysis of the business's goals, its financing needs and planned activities. In any case, the authorized capital is the basis for launching and growing the business and an important factor in ensuring its financial stability and gaining the trust of partners and investors.
Do Bulgarian companies need local directors?
Bulgarian law does not strictly require that a company's directors or managers must be Bulgarian residents. This means that foreign citizens can serve as directors of Bulgarian companies without having to reside in Bulgaria. However, there are several aspects to consider:
Registration and Taxation: The presence of foreign directors does not affect the company's obligations towards the Bulgarian tax authorities. The company must meet all local tax requirements, including corporate tax, VAT and other charges.
Company Representative: Although the position of director does not require local residence, it may be necessary to have a person who can represent the interests of the company in Bulgaria to carry out administrative procedures, communicate with government agencies and participate in legally important events.
Banking: To open and manage your company's bank account in a Bulgarian bank, you may need additional documents from the foreign director, such as a residence certificate or a special power of attorney.
Practical considerations
While there are no legal restrictions on the appointment of foreigners as directors, in practice you may encounter difficulties managing your company remotely. In some cases, it may be necessary to appoint a local director or representative who can quickly resolve current issues, communicate with local government agencies and ensure that all necessary formalities are completed.
Conclusion
In Bulgaria, directors of companies do not need to be residents of the country and foreign nationals can hold this position, but must comply with all applicable tax and administrative obligations of the company. However, it is important to consider the practical aspects of business management and the possible benefits of having local representatives in terms of effective interaction with government agencies and banks. In certain cases, it may be advisable to appoint local directors or managers to facilitate business operations and minimize administrative difficulties.
What is the amount of the state fee when setting up a company in Bulgaria?
Setting up a company in Bulgaria involves the payment of certain state fees, which are part of the administrative costs of the registration process. The amount of these fees may depend on various factors, including the legal entity form chosen, the registration method (electronic or paper), and additional services. Below is an overview of the main state fees associated with setting up a company in Bulgaria, up to date as of the time of writing.
Limited Liability Company
Registration fees: When registering a public association through the Commercial Register, the state fee is approximately BGN 110 (approximately EUR 56) for filing paper documents and BGN 55 (approximately EUR 28) for electronic registration.
Additional fees: Additional fees may apply for publication of your registration in the Official Gazette.
Joint Stock Company (AD)
Registration fees: For ADs, the national registration fee is higher, about 210 BGN (about 107 EUR) for paper documents and 105 BGN (about 54 EUR) for electronic registration.
Additional fees: Similar to OOD, publication in the Official Gazette may incur additional fees.
Trademark registration
Other fees and charges
Notarial fees: The company's constituent documents must be notarized. The notarial fees depend on the nature of the document and the size of the company's authorized capital.
Legal and consulting service fees: In addition to government fees, a company may also need to pay for attorneys or consultants to provide registration and document preparation services.
Conclusion
The amount of state fees for registering a company in Bulgaria is relatively small, especially when using the electronic registration form. However, potential entrepreneurs should also consider other possible costs associated with the registration process, including notary fees and legal advisory fees. It is always recommended to obtain the latest information on fee amounts and document requirements before starting the registration process to ensure that you can effectively and successfully establish your company in Bulgaria.
What are the annual costs of maintaining a company in Bulgaria?
The annual costs of maintaining a company in Bulgaria are an important aspect of financial planning for any business planning to operate in the country. These expenses include not only government taxes and levies, but also other mandatory payments as well as accounting, legal and administrative costs. In this article, we will outline the main components of the annual costs of maintaining a company in Bulgaria to give entrepreneurs an idea of the financial obligations they may face.
Taxes and state revenue
Corporate Tax: Bulgaria has one of the lowest corporate tax rates in the EU at 10%. This tax is levied on company profits.
Dividend tax: The dividend tax rate is 5%. Applicable to dividends paid by Bulgarian companies to their shareholders.
Annual state fees: Companies must file annual financial statements with the Commercial Register, along with payment of a state fee, the amount of which depends on the size of the company and the type of documents filed, but usually does not exceed a few hundred leva.
Accounting and Auditing Services
Accounting: The cost of accounting services depends on the volume of business, the size of the company and the specific nature of the business. Generally speaking, small companies can expect monthly fees of 200 to 500 levs (100 to 250 euros).
Audit: If the company is subject to audit under Bulgarian law, the cost of audit services may vary greatly depending on the size of the company and the complexity of its financial operations. Prices can start from a few thousand levs.
Legal Services
Legal fees can vary widely depending on the needs of the company. Regular legal services may include consultation on labor law, contractual relations, and corporate governance. Fees for legal services start at a few hundred levs per month.
Administrative expenses
Office Rent: Office rents vary depending on the location and quality of the office space. Prices are higher in Sofia and other major cities.
Utilities and internet costs: These also depend on the size of the office and how heavily it’s used, but they are necessary expenses to run an office.
Employee costs: Includes wages, social security and health insurance. Social security contributions in Bulgaria account for a large part of employee costs.
Conclusion
The annual cost of maintaining a company in Bulgaria varies depending on many factors, including the size and type of activities of the company, as well as the level of service required. When planning to start a business in Bulgaria, it is important to consider all possible costs to ensure its sustainable and efficient operation. Contacting a professional consultant will help you get a more accurate estimate and plan your budget.
What are the main advantages of setting up a company in Bulgaria?
Setting up a company in Bulgaria is an attractive opportunity for entrepreneurs and investors for many reasons. Since becoming a member of the European Union in 2007, the country offers a stable economic environment, favorable tax legislation and access to European markets. Let's take a closer look at the main advantages of setting up a company in Bulgaria.
Favorable tax legislation
One of Bulgaria's most notable advantages is its low corporate tax rate of only 10%. This is one of the lowest income tax rates within the European Union. In addition, Bulgaria imposes a preferential tax rate on dividends - 5%, which makes the country even more attractive to foreign investors.
Strategic location
Located at the junction of Europe and Asia, Bulgaria offers easy access to markets on both continents. This is particularly important for exporting and importing companies, as the country has access to the Black Sea and a well-developed transport corridor infrastructure.
Convenient business environment
In Bulgaria, the procedure for registering a company is relatively simple and quick. The government seeks to simplify administrative procedures and support entrepreneurial initiatives. As a result, the country is attracting increasing foreign investment.
EU and the Single Market
As a member of the European Union, Bulgaria offers companies access to the EU single market of more than 500 million consumers. This provides huge opportunities for trade and investment, without tariff or non-tariff barriers.
Skilled and cost-effective workforce
Bulgaria is known for its highly skilled yet affordable workforce, especially in the fields of information technology, engineering, and finance. This makes the country an ideal location for developing IT startups and research centers.
Developed infrastructure
Bulgaria has a well-developed infrastructure including modern highways, ports and airports, ensuring efficient logistics and cargo transportation.
Opportunities to get funding
Bulgarian companies have access to various sources of funding, including European grants and funds to support innovation, business development and infrastructure projects.
Stability and security
Bulgaria offers political and economic stability, which are key factors for running a successful business. In addition, the country has a low crime rate and is safe to live and work in.
Conclusion
Establishing a company in Bulgaria offers investors many advantages, including favorable tax legislation, strategic geographical location, access to European markets, a skilled and cost-effective workforce, and a stable economic and political environment. These factors make Bulgaria one of the most attractive countries in Europe to do business.
What are the ways to set up a company in Bulgaria?
Setting up a company in Bulgaria is a process that attracts many foreign investors due to the country's favorable tax treatment, strategic location and access to the EU market. There are various legal forms for setting up a company in Bulgaria, each with its own characteristics, requirements and advantages. In this article, we will detail the main ways to set up a company in Bulgaria.
Limited Liability Company
The Limited Liability Company is the most popular business form among Bulgarian small and medium-sized enterprises. This form means that the liability of the founders is limited to the amount of their contribution to the company's authorized capital. The minimum authorized capital for public organizations is 2 levs (about 1 euro), which makes this method particularly attractive for small businesses.
Stock Company (AD)
A joint stock company (AD) is suitable for large businesses with many shareholders. In this form of company formation, the liability of shareholders is limited to their share in the company's share capital. The minimum authorized capital of a joint stock company is 50,000 levs (about 25,000 euros). ADs allow the issuance of shares and bonds, which is useful for attracting investment.
Limited Company (CD)
A Bulgarian limited company is a partnership in which one or more founders (supplementary partners) have unlimited liability, while the other founders (limited partners) have limited liability. This type of company is often used in family businesses or small businesses where separation of management duties and responsibilities is important.
Representative office or branch of a foreign company
Foreign companies can expand their business into the Bulgarian market by opening a representative office or a branch. A representative office is not an independent legal entity and cannot carry out commercial activities. Its main function is marketing and promotion. A branch, on the other hand, is an extension of a foreign company and can carry out business in Bulgaria, with the parent company taking care of the financial responsibilities.
Sole proprietor
A sole proprietorship or self-employment is a business form suitable for a single person who wishes to work for himself. It is the simplest and cheapest form of business in Bulgaria, but the entrepreneur has unlimited liability for his personal property.
Company Registration Process in Bulgaria
The process of registering a company in Bulgaria involves filing documents with the Commercial Registry, paying state fees and issuing founding documents. Depending on the type of business, additional licenses or permits may be required. Overall, the registration process takes anywhere from a few days to a few weeks.
Conclusion
The choice of legal form for incorporating a company in Bulgaria depends on many factors, including the size and type of business, the number of founders, and financial and legal considerations. Bulgaria is an attractive location for doing business in the European market due to its flexible legislation and favorable tax system.
Do I need to have a legal address in Bulgaria?
In Bulgaria, the legal address plays an important role not only in the process of registering a company, but also in its subsequent operational activities. Understanding the requirements of the legal address will help entrepreneurs ensure compliance with Bulgarian law and avoid possible legal difficulties. In this article, we will look in more detail at why you need to have a legal address in Bulgaria and how to use its characteristics.
Why do I need a legal address?
Company Registration
A legal address is required at any stage of registering a company in Bulgaria. It is used as the company's official address, where the company is registered with the Trade Registry, and where official communications with government agencies and other institutions take place. Without a specified legal address, the company registration process cannot be completed.
Legal Correspondence and Notices
The legal address is used to receive various types of legal and official correspondence, including notices from tax authorities, court notices, and other important documents. This ensures that all necessary notices and requests from government agencies and business partners are received correctly and promptly.
Tax registration and reporting
For tax purposes, a company must have a registered legal address in Bulgaria. The Internal Tax Service uses this address to determine tax jurisdiction and send tax notices. It is also required for filing tax reports and fulfilling other tax obligations.
Customer and partner trust
Having a legal address in Bulgaria can help increase the trust of customers, suppliers and business partners, as it confirms the company’s official presence in the jurisdiction and its willingness to comply with local laws.
How do I get a legal address in Bulgaria?
A company can use both the physical location of its office in Bulgaria and the services of providing a legal address through a specialized service. The latter option is particularly relevant for foreign entrepreneurs who do not yet have a physical presence in the country but want to register a company in Bulgaria. In this case, a company providing virtual office services can provide a legal address for registration and subsequent use in business communications.
Conclusion
Having a legal address in Bulgaria is a mandatory requirement for the establishment and subsequent operation of a company in the country. It plays a key role in company registration, tax accounting, receiving legal correspondence and maintaining the trust of the business community. Choosing a suitable legal address and using it correctly ensures compliance with legal requirements and contributes to the successful conduct of business in Bulgaria.
Can I open a foreign company branch in Bulgaria?
Opening a foreign company branch in Bulgaria is a strategic move to expand business and enter the EU market. Due to its favorable tax system, strategic geographical location and stable economy, Bulgaria is an attractive jurisdiction for international companies seeking to strengthen their presence in Europe. In this article, we will take a closer look at the process, main requirements and advantages of opening a foreign company branch in Bulgaria.
Procedure for opening a branch in Bulgaria
The process of opening a branch of a foreign company in Bulgaria begins with the submission of a series of documents to the Bulgarian Trade Register. The process includes the following steps:
Document preparation and legalization: Foreign companies must prepare their incorporation documents and an extract from the trade registry of the country of incorporation, confirming the existence of the company. These documents must be notarized and legalized (or authenticated if the country is a signatory to the Hague Convention).
Document Translation: All documents must be translated into Bulgarian by a certified translator and certified according to the requirements of Bulgarian law.
Registration in the Commercial Registry: You will then need to submit a set of documents to register the branch in the Bulgarian Trade Registry. It is important to note that the branch will have the status of a legal entity under Bulgarian law.
Appointment of a branch manager: Foreign companies must appoint a branch manager to represent the interests of the company in Bulgaria. The manager must have the authority to conduct transactions on behalf of the branch.
Tax registration and bank account opening: After registration, the branch must register with the Bulgarian Tax Authority and obtain a tax number. You will also need to open a bank account in a Bulgarian bank for the branch's financial operations.
Advantages of opening a branch in Bulgaria
Entry into European markets: Opening a branch in Bulgaria allows foreign companies to easily enter the EU market and use Bulgaria as a strategic base for expanding their business in Europe.
Tax Benefits: Bulgaria offers one of the lowest corporate income tax rates in the EU, which makes it attractive to foreign investors.
Skilled and cost-effective workforce: The company can make use of skilled and relatively cheap workforce to manage its business.
Stable Economic and Political System: Bulgaria offers a stable economic and political environment, reducing risks for foreign investors.
Conclusion
Opening a foreign company branch in Bulgaria is an excellent strategy to expand your business and enter the European market. Bulgaria offers many advantages to international companies due to its favorable tax climate, skilled workforce and easy access to EU markets. It is important to carefully prepare for the registration process and follow all requirements of Bulgarian law to ensure a successful and efficient branch establishment.
Can foreigners open a company in Bulgaria?
Foreign entrepreneurs interested in expanding their business in Europe often consider Bulgaria as an attractive jurisdiction to start a company. Bulgaria offers important advantages to foreign investors due to its strategic location, favorable tax treatment, relatively low operating costs and access to the EU single market. In this article, we will cover the key aspects related to the possibility for foreign citizens to start a company in Bulgaria, including company types, registration procedures and basic requirements.
Possibilities for foreigners to open a company in Bulgaria
Foreign citizens have the right to open or acquire a company in Bulgaria under the same conditions as local residents. This right is supported by Bulgarian legislation and the country's policy aimed at attracting foreign investment. Foreign entrepreneurs can choose different legal forms of company, depending on their business objectives, scope of operations and management structure.
Legal form of company for foreign investors
The main legal forms that foreign investors can choose in Bulgaria are:
Limited Liability Company: Suitable for small and medium-sized enterprises, requiring a minimum authorized capital of 2 leva (about 1 euro), and the founders' liability is limited to their contribution to the company's capital.
Joint Stock Company (AD): More suitable for larger businesses, with a minimum authorized capital of 50,000 levs (approximately 25,500 euros) and shares can be publicly offered.
Limited liability companies and general partnerships: Lesser-used forms of partnership for certain types of business relationships.
Company Registration Process
In Bulgaria, the steps for foreigners to register a company include the following:
Choose a business name and verify it's unique.
Prepare and sign the constituent documents, including the Articles of Incorporation and the Foundation Agreement, which must be notarized.
Pay authorization capital.
Register your company with the Commercial Registry and obtain a taxpayer identification number.
Open a bank account.
Obtain necessary permits and licenses if required for specific types of activities.
Basic requirements and recommendations
Have a legal address in Bulgaria: To register a company, you must have a registered office in the country.
Compliance with tax and accounting requirements: Companies must keep records and provide financial statements as required by Bulgarian law.
Obtaining Special Permits: Certain activities may require a special permit or license.
Advantages of opening a company in Bulgaria
Favourable tax treatment: One of the lowest income tax rates in the EU (10%).
Access to European Markets: Boosting trade and investment within the EU.
Skilled and cost-effective workforce.
Stable economic and political environment.
In conclusion, Bulgaria offers foreign investors convenient and favorable conditions for starting and operating a business. Compliance with the country's procedural requirements and regulations will allow us to successfully implement our business projects and ensure their long-term development in the European market.
Can I get a residence permit when setting up a company in Bulgaria?
Setting up a company in Bulgaria is one way for foreign citizens to obtain a residence permit in the country. Due to its membership of the European Union, Bulgaria offers favorable business conditions, including low taxes and access to the European single market. In this article, we will explore how the process of setting up a company in Bulgaria relates to obtaining a residence permit, focusing on the key requirements, procedures and possible benefits.
Residence permit through company establishment
Foreign citizens can use the establishment of a company in Bulgaria as a way to apply for a residence permit. However, it is important to understand that the establishment of a company alone does not guarantee an automatic residence permit. Applicants must meet a series of conditions and requirements set out in Bulgarian law.
Basic requirements and conditions
Investment in the Bulgarian economy: One of the key factors is the amount of investment made through the establishment of a company in the country's economy. Foreign investors must prove that their activities contribute to the development of the Bulgarian economy.
Job creation: Companies are usually required to create jobs for Bulgarian citizens or EU residents, which is also an indicator of positive contribution to the country's economy.
Financial stability: Applicants must demonstrate that they are financially stable and able to provide for themselves and their family without the use of social assistance in Bulgaria.
Legal and physical address: The legal address of the company and the physical residence of the applicant are in Bulgaria.
Residence permit application process
Company Registration: The first step is to successfully establish and register the company according to local laws.
Submission of documents: Applicants submit a set of documents to the Bulgarian Immigration Service, including documents proving investment, job creation and financial soundness.
Wait for decision: After submitting all the necessary documents, the applicant must wait for the decision of the relevant department. Application processing time may vary.
Obtaining a residence permit: In case the decision is positive, the applicant will be granted a residence permit, usually for one year, which is renewable.
Advantages of obtaining a residence permit in Bulgaria
Access to the EU market: A residence permit allows you to travel freely within the EU and to conduct business.
Quality of Life: Bulgaria offers a high quality of life, a mild climate, and an affordable cost of living.
Tax Incentives: Favorable tax treatment is provided to foreign investors and entrepreneurs.
Obtaining a residence permit by setting up a company in Bulgaria is a real opportunity for foreign investors. It is important to carefully study all requirements and make sure that the company meets the established criteria to successfully obtain residency.
What is written in the articles of association for a company registered in Bulgaria?
The Articles of Association of a company registered in Bulgaria play a key role in determining the company's structure, objectives and management rules. This document sets out the fundamental aspects of organization and operations, providing the legal framework for all of the company's operations. The Articles of Association must be written in accordance with Bulgarian law and contain a number of mandatory sections to ensure their legal validity. In this article, we will look at the key elements that should be clearly stated in the Articles of Association of a company registered in Bulgaria.
Basic information about the company
Full and Abbreviated Name of the Corporation: The Articles of Incorporation must clearly state the full name of the corporation and any abbreviations or business names the corporation intends to use.
Legal Address: It is necessary to indicate the company's legal address in Bulgaria, which will be used for official correspondence and state registration.
Company objectives and activities
The Articles of Association should describe the main objectives and activities of the company and define the areas in which the company intends to carry out its business. This includes the company's main areas of activity as well as any additional areas in which the company may engage.
Authorized capital
This section specifies the amount of the company's authorized capital, as well as the procedures for its formation and amendment. The shares or par value owned by each founder or shareholder must be specified, as well as the terms of capital contributions.
Company Management
The Articles of Association should contain provisions regarding the company's management structure, including:
Governance bodies: Description of the company’s governance bodies, such as shareholders’ (founders’) meetings and the board of directors or general manager, and their authority.
Decision-making: meeting procedures, quorum required for decision-making, and voting methods.
Shareholders' Rights and Obligations
The Articles of Association should define the rights and obligations of shareholders, including the right to dividends, the right to participate in the management of the company, and the right to dissolve the company.
Financial Activities and Reports
This section describes the rules for accounting, preparation and filing of financial statements, auditing, and allocation of corporate profits and losses.
Articles of Association Amendment and Company Liquidation
The charter should contain procedures for amending the articles of incorporation, as well as procedures for liquidating the company, including the distribution of assets once all obligations have been satisfied.
How long does it take to set up a company in Bulgaria?
The process of setting up a company in Bulgaria is attractive to foreign investors because the procedures are relatively simple and transparent. The time required to complete all the formalities of setting up a company can vary depending on various factors, including the type of company, the availability of documents, and the efficiency of interaction with Bulgarian government agencies. In this article, we will look at the main stages of setting up a company in Bulgaria and estimate the time required to complete them.
Stages of company establishment in Bulgaria
Document preparation
The first step is to prepare all the necessary documents, including the Foundation Agreement and Articles of Association. For foreign investors, this may also include translating the documents into Bulgarian and having them notarized. The time required for this stage can vary, but it usually takes anywhere from a few days to 2 weeks.
Registration in the Commercial Register
After all the documents have been prepared and certified, the next step is to submit them for registration in the Commercial Registry. The registration process usually takes 1 to 3 working days from the moment of submitting the application. It is worth noting that this period may vary depending on the workload of the registry.
Open a bank account
To set up a company in Bulgaria, you must open a bank account and deposit the authorized capital into it. The process of opening an account may take from a few hours to a few days, depending on the bank and the availability of all necessary documents.
Obtain necessary licenses and permits
Depending on the company's field of activity, special licenses or permits may be required. The time required to obtain these documents varies depending on the specific requirements and can take anywhere from a few weeks to several months.
Overall time estimate
On average, the process of setting up a company in Bulgaria can take from 1 to 4 weeks, starting with the preparation of documents and ending with the registration, provided that all documents are prepared correctly and no special licenses or permits are required. However, for companies whose activities are subject to licensing or require special permits, the time limit may increase.
Important considerations
Efficient preparation: Delays often occur due to incomplete or incorrect documentation packages. We recommend that you use the services of a legal advisor to ensure that your documentation is correct and complete.
Interaction with the bank: When choosing a bank to open an account with, consider its experience with foreign clients and the speed with which it processes your application.
Business-based planning: Some types of businesses require more time to obtain all necessary permits, and this should be taken into account when planning.
Conclusion
Setting up a company in Bulgaria is a relatively quick and simple process, especially compared to other EU countries. Proper preparation and knowledge of all requirements can significantly speed up the process and help avoid unnecessary delays, allowing foreign investors to start their business in Bulgaria as quickly as possible.
What activities can a company do in Bulgaria?
Companies registered in Bulgaria can engage in a wide variety of activities, reflecting the diversity of the country's economic landscape and its integration into the European Union. Due to its favorable tax system, strategic location and qualified workforce, Bulgaria offers attractive conditions for the development of both traditional and innovative business sectors. In this article, we will explore the key activities that companies can engage in in Bulgaria, exploring their potential and market characteristics.
Travel
Tourism is one of the main sectors of Bulgaria's economy, thanks to its rich cultural heritage, picturesque mountain landscapes and long sandy beaches on the Black Sea. Companies can organize tourist excursions, provide accommodation services, restaurant services and entertainment. The development of green and rural tourism also opens up new prospects for investment.
Information Technology and Software Development
In recent years, Bulgaria has established itself as a major player in Europe’s IT industry and software development sector. The country has attracted international companies and tech startups due to its talented professionals and relatively low costs of doing business.
Agriculture and food industry
Bulgaria's agricultural sector has great potential due to its fertile land and favorable climate. The production and export of cereals, oilseeds, fruits and vegetables, as well as the development of the wine industry and the production of organic products are attractive to investors.
Energy sector
Bulgaria offers opportunities for investment in the energy sector, including renewable energy production, nuclear energy development and energy efficiency projects. The country aims to increase the share of renewable energy in its energy mix, opening up prospects for green investments.
Mechanical Engineering and Manufacturing
Bulgaria's traditionally developed mechanical engineering and manufacturing sectors continue to attract foreign investment. The production of automotive parts, electronics, textiles and other industrial products offers broad opportunities for business development.
Transportation and logistics
Due to its advantageous geographical location, Bulgaria has become an important transit channel between Europe and Asia. The development of transportation infrastructure and logistics services, including sea and air transport, rail and road transport, is a promising area for investment.
Conclusion
Companies in Bulgaria have ample business opportunities in all sectors of the economy. From tourism and information technology to agriculture, energy and manufacturing, the country offers favorable conditions for local and foreign entrepreneurs. It is important to carefully study market trends and the legal environment to choose the best business development strategy. At the same time, Bulgaria's attractive tax policy and desire to strengthen its position in the European Economic Area make it an attractive country for investment and business development.
Should companies in Bulgaria hire employees?
The question of whether a company registered in Bulgaria needs to employ employees involves both legal requirements and strategic business planning. Bulgarian law sets out the framework for doing business, but the specific requirements for the number of employees may vary depending on the type of activity and legal form of the company. Let's look at this question more closely, taking into account various aspects of managing a company in Bulgaria.
Legal aspects
Bulgarian law does not provide for a general obligation for all types of companies to employ full-time employees. This means that from a legal point of view, a company can be registered and operate without employing employees, as long as this does not violate other specific requirements related to its activities.
However, certain activities that require licensing or certification may have specific qualifications and personnel requirements. For example, in the fields of education, healthcare, construction, and transportation, employee requirements may be strictly regulated by relevant regulations.
Strategic Planning and Management
From a strategic planning perspective, whether a company has employees can impact its operational efficiency, scalability, and ability to grow. It is critical to assess the business’s need for specialized skills and resources to achieve the company’s goals.
Companies engaged in intensive research, production or service delivery may need to employ qualified professionals in order to work and grow effectively. At the same time, many modern business models based on information technology or remote services can require only a minimum number of employees or even be fully automated.
Outsourcing and Freelancing
An alternative to hiring full-time employees can be outsourcing or freelancing services. This allows companies to remain flexible, reduce operating costs and still have access to a variety of professional skills when needed. However, when choosing this model, it is important to consider aspects related to quality control and confidentiality of information.
Conclusion
In general, whether a company registered in Bulgaria needs to employ employees depends on the specific nature of the business, its objectives and development strategy. At the same time, the company should comply with all applicable legal requirements and evaluate its operational needs to choose the most appropriate human resource management model. In any case, flexible resource management methods and the use of modern business practices will help to successfully conduct and develop business in Bulgaria.
How to choose a Bulgarian company name?
Choosing a name for your company is a crucial step in the process of starting a business, especially in a country with such a rich cultural and historical heritage, such as Bulgaria. Choosing the right name not only helps to make your company stand out, but also plays an important role in building a brand and attracting customers. In Bulgaria, as in many other countries, there are certain requirements and restrictions when it comes to choosing a company name. In this article, we will look at the key aspects and provide advice on choosing a name for your company in Bulgaria.
Research legal requirements
Before choosing a name, it is essential to be aware of the legal requirements and restrictions imposed by Bulgarian law. In Bulgaria, the name of a company should not be misleading as to its activities and should not be identical or too similar to existing names of companies already registered in the country. There are restrictions on the use of certain words and expressions and special permission may be required.
Conform to the activity area
The name should reflect the essence and specialization of your business, making it recognizable to your target audience. It should be clear and memorable so that customers can easily associate your brand with the products or services you offer.
Uniqueness and usability check
Before you finalize the name, you need to make sure it is unique. In Bulgaria, you can use an online service to check the name at the Commercial Registry. This will avoid conflicts with registered trademarks and company names.
Simple and easy to remember
Choose a name that is easy to pronounce, spell, and remember. This is especially important for international businesses, as your name will be used not only on the Bulgarian market. Avoid using complex phrases and abbreviations that may not be obvious to the general audience.
Cultural Adaptation
Given Bulgaria’s cultural and linguistic nuances, it’s worth considering how your name will be perceived by the local audience. Avoid words that could have negative connotations or be misunderstood.
Visual components
Consider how the name will look on your brand materials, including logos, websites, and advertising materials. A good name will easily adapt to different formats and design styles, strengthening your brand.
Conclusion
Choosing a company name in Bulgaria not only involves complying with legal requirements, but is also an important part of your branding strategy. The name must be unique, reflect the scope of your business, be easy to remember, and fit into the cultural context. Give this process plenty of attention and thorough consideration, as choosing the right name will lay the foundation for a successful business in Bulgaria.
Bulgarian Business Registration
Bulgaria's Business Register is a key tool to ensure transparency and accessibility of information about legal entities and individual entrepreneurs registered in the country. This centralized electronic register is managed by the Registration Authority, which reports to the Bulgarian Ministry of Justice and plays an important role in regulating business activities, building trust among the business community and protecting consumer interests.
Objectives and functions of business registration
The main purpose of the Bulgarian Business Register is to provide up-to-date, reliable information about companies, including their legal status, basic management information, authorized capital, subject matter and record history. The register serves as an important source of data for government agencies, financial institutions, business partners and investors, ensuring transparency in the business environment and helping to prevent fraud and economic crime.
Company Registration
To start doing business in Bulgaria, every company or individual entrepreneur must register in the Commercial Register. The registration process involves submitting company constitution documents, information on owners and managers, and paying relevant state fees. Upon successful registration, the company will receive a unique identification number (EIC), which will be used in all official documents and transactions.
Information Acquisition
The information contained in the Commercial Register is public and can be viewed online through the official website of the register. This makes it possible to check the company's legal status, financial situation, history of changes to its constituent documents, and other information important for making informed business decisions.
Business Benefits
Bulgaria's business register offers many advantages to registered companies, including legitimacy and recognition in the business community, simplified procedures for loans and financing, and the ability to participate in public and private tenders. In addition, transparency and accessibility of information help build trust with partners and customers.
Conclusion
Bulgaria's business register plays a central role in the country's economic life, ensuring stability and transparency in the business environment. It serves as a reliable source of information about companies, helps protect the rights of investors and consumers, and also strengthens the credibility of Bulgarian business internationally. The importance of this tool is self-evident, as it makes a significant contribution to the development of the economy and promotes transparent and efficient business practices.
Limited Liability Company
Closed joint stock company
Public Joint Stock Company
Limited Partnership
General partnership
Sole proprietorship
