Starting a new business is one of the most exciting adventures in a person’s life. Now, Bulgaria offers a favorable climate for business. Many people make use of the favorable 10% corporate tax. Additionally, registering enterprises for foreign businesses in this place has been simplified. Individuals can even register their enterprises from wherever they are through the power of attorney.
Often, foreigners encounter various issues while purchasing land in Bulgaria. But, these restrictions don’t affect foreign firms. As such, non-Bulgarian business persons can comfortably purchase and own land for their business without any legal issues. Today, we will talk about the steps involved in registering your firm in this place and hopefully simplify things for you.
Steps to Registering a Business in Bulgaria
Before you start registering, you must think of certain requirements. Your enterprise must have an address in Bulgaria. It also needs to have initial funds that’ll be deposited in a local bank. Lastly, individuals need to choose a name as well as a target niche for their business.
Again, it’s also crucial that persons choose their legal business forms. Note that many options can be chosen. Therefore, ensure that you decide properly as this will affect how you run your business, the way it operated, and the Liability of your company. These forms include;
- Private Limited Liability Company (OOD)
- Branch in Bulgaria
- Public Limited company (AD)
- Freelance
- Sole Owner (ET)
- Single Person Limited Liability company (EOO
We advise hiring a lawyer to explain further these forms and help you choose the correct one. Once you’ve figured that out, follow these steps.
Choose a Name for Your Enterprise
Your company’s name identifies it to the market and before government institutions. Individuals should take some parameters into account when naming their company. One must first choose a name and occupy it before the registration process. Note that occupying a name isn’t compulsory however it is useful in some cases.
Registering an Escrow Bank Account
With a name in place, individuals are then required to have a special escrow account in a local bank. This helps a company’s legal and equity registration. The Bulgarian rules and regulations require initial bank account registration.
Address Registration of Your Business
This is the next compulsory step when setting up a business in Bulgaria. All companies in this place must have a Bulgarian address.
Registering With the Government Official Register
Bulgarian laws require every business venture to be registered in the Official Commercial Register that’s publicly available.
Registering Your Stamp
Every business venture must have a stamp that’ll be used for endorsing formal activities. While this is an additional after-registration step, registering your stamp has an obligatory function when it comes to company formation in Bulgaria.
How Can I Open a Business in Bulgaria?
You’ll need to choose a name for your OOD business in Bulgaria. After, you should appoint your company’s representative agent. Then, one needs to deposit the minimum share capital, that is, 2 BGN, in a Bulgarian bank. After that, individuals should prepare then submit their company’s article of association. You’ll then verify and apply licenses for your enterprise, register for tax purposes, and lastly apply for Bulstat number.
How Much Will It Cost to Form an Enterprise in Bulgaria?
There are several costs you should expect during company formation in Bulgaria. These include;
- Registration fee- this consists of payments for registration forms, business name, documents, certificate of incorporation. It costs around EUR 983.
- Virtual office costs that are EUR 25/month.
- Accounting costs- start from EUR 30/month
- Minimum share capital- it costs one Euro for opening an OOD.
- Fees for business formation that cost around EUR 800.
Final Thoughts
Registering of companies follows the same procedure for both foreign and local persons. But, if you’re thinking of doing business in Bulgaria, we recommend work with a reliable attorney. He or she will advise the steps to take to ensure that your enterprise meets all legal registration rules and requirements.
