Bulgaria is an attractive destination for entrepreneurs looking to start a business in Europe. The country has a stable economy, favorable tax policies, and a strategic location at the crossroads between Europe, Asia, and the Middle East. If you plan starting a business in Bulgaria, here’s what you need to know from a legal perspective.
Legal Forms of Business
The most common legal forms of business in Bulgaria are:
Sole proprietorship – this is the simplest form of business organization, suitable for small businesses with one owner. The owner has unlimited liability for the company’s debts.
Limited liability company (LLC) – this is the most popular form of business organization in Bulgaria. It requires at least one founder and allows for up to 50 shareholders. The shareholders have limited liability for the company’s debts.
Joint-stock company (JSC) – this is a more complex form of business organization that requires at least two founders and allows for an unlimited number of shareholders. The shareholders have limited liability for the company’s debts.
Registration procedure depends on your business model and choice for conducting your activity. If you choose to be a freelancer you need a registration in BULSTAT register.
To register a business in Bulgaria – LLC or JSC, you need to follow these steps:
Choose a business name – The name must be unique and not already registered by another company.
Prepare number of documents needed for the registration of the company in Bulgaria.
Open a bank account – You need to open a bank account in Bulgaria to deposit the company’s initial capital.
Obtain a unique identification code (UIC) – This is a unique identification number that you need to obtain from the Bulgarian Commercial Register.
Register the company with the Commercial Register – You need to submit the articles of association, the UIC, and other required documents to the Bulgarian Commercial Register.
Obtain a business license (if needed) – Depending on the type of business you’re starting, you may need to obtain a business license from the relevant authorities. Keep in mind, that most of the business activities don’t require a license.
Bulgaria has one of the lowest corporate tax rates in Europe, currently set at 10%. Additionally, the country offers a flat personal income tax rate of 10% and a value-added tax (VAT) of 20%. It is better to consult with our tax professionals to ensure that you’re compliant with all tax obligations and to take advantage of any tax benefits that may be available to your business.
Starting a business in Bulgaria is a relatively straightforward process that requires careful planning and compliance with legal and tax requirements. By following the steps outlined in this guide and seeking professional advice, you can set up a successful business in one of Europe’s most promising markets. If you need more information, have concerns or you came to a decision to start a business in Bulgaria. Legalla’s team has the necessary knowledge and experience to assist you. Don’t hesitate to contact us. We would be more than happy to help you move to Bulgaria where to establish and grow. You can write to one of our team members in LinkedIn, if you feel ok with it, too.