Bulgaria - Company Incorporation

bulgaria

Why Bulgaria?

  • EU membership.
  • Industrial goods traded duty free between Bulgaria and the EU, EFTA, CEFTA and Turkey.
  • Corporate tax rate – 15% and 0% in areas of high unemployment.
  • VAT exemption of equipment imports for investment projects over €5 million.
  • Annual depreciation rate of 30% for machinery & equipment & 50% for software and hardware.
  • Opportunity to buy land through a company registered in Bulgaria with up to 100% foreign ownership.
  • Infrastructure subsidy for investment projects over €50 million.
  • 55 treaties for avoidance of double taxation.
  • English speaking work force at competitive cost.

A limited liability company with the suffix OOD

  • At least one shareholder and one director is needed to set up the company. The shareholders may be individuals or companies.
  • The minimum share capital is BGL 5,000, with the minimum nominal value of BGL 10 a share.
  • At least 70% of the capital must be paid up before registration.
  • An annual shareholders' meeting must be convened at least once a year.

A liability company with a single member with the suffix EOOD

  • This is an OOD company owned by one individual, who may be a foreign resident.
  • The single shareholder may serve also as a director of the company.

Incorporating in Bulgaria

Getting name clearance
Getting statutes notarised
Deposit capital in a bank
Pay court fee at treasury
Register at the District Court
Publish in the state gazette
Register with national authorities
Register with the Regional Social Security Institute
Register for taxes
Register for VAT

A consolidated company with the suffix AD

  • At least 1 shareholder or more is required to set up the company.
  • The minimum share value is BGL 1.
  • The company must have a minimum registered capital of BGL 50,000.
  • At least 25% of the registered capital must be paid up before registration.
  • The company is managed by a board of management, or at two levels by a supervisory board and a board of management.

A consolidated company with a single shareholder with the suffix EAD

  • The company is owned and controlled by a single shareholder.
  • It is compulsory to file an annual balance sheet with the tax authorities.