Company formation in Bulgaria: why is it a good option for doing business in the European Union.

Today we are going to share our overview about another European country that is perfectly suitable for starting business activities – Bulgaria. Company formation in Bulgaria may bring a number of benefits to new businesses or existing groups of companies. This is explained by at least several factors like geographical location, attractive tax regime, EU member state status, the emerging European economy, and others.

Bulgaria is a Balkan country situated in Southeast Europe and having its common borders with Romania (in the North), Turkey and Greece (in the South), North Makedonia, and Serbia (in the West). Nowadays, its approximate population is about 6,9 million inhabitants. Bulgaria has been a member of the EU since January 1, 2007, which allows its nationals and businesses to benefit from entering the economic area of the EU and EEA.

The most popular and the most common type of business entities registered in Bulgaria are the private limited companies. There are two main types: Sole owner limited liability company (EOOD) / Limited liability company (OOD) with the difference lying in number of shareholders. Like in many other jurisdictions, the key benefit of this type of entity is the shareholders’ limited liability to the amount of the paid-up capital. The required minimum capital is 2 BGN (EUR 1 approx.).

Company formation in Bulgaria brings not only an access to the local and EU/EEA markets but also grants an excellent tax regime. Bulgarian companies can enjoy a 10% corporate income tax for their profits while the personal income tax is also limited to 10% only (the standard VAT rate is 20%). These tax rates are considered to be one of the lowest across the European Union. In addition to that, as of March 2023, Bulgaria has signed double taxation treaties (DTTs) with more than 70 countries around the world. At the same time, the local legislative framework remains on the top level and corresponds to the most modern EU and international standards to ensure the country is attractive for investments and business incorporation.

The company incorporation in Bulgaria requires a minimal number of documents and takes around 5 to 10 business days to get accomplished. This applies to both nationals and foreign investor who have no limitations on their participation rights. To proceed with the formation, it is required to get the memorandum and the articles of association to get registered with the Bulgarian Chamber of Commerce. Once the company is successfully registered with BCC, it will be also listed in the State Gazette. By having the latter, the company is fully ready to go further with its trade of goods and services.

In order to maintain its good legal standing, each Bulgarian company should have its own registered office address as well as submit its annual financial statements to the Commercial Register. Should the company be registered as a VAT payer or have a different legal structure (like a joint stock company) additional rules may apply.

If you are looking for a time- and cost-efficient European jurisdiction with low maintenance requirements for business formation – Bulgaria is definitely an option to consider. No matter what business activities you plan to be engaged in, our team would be more than pleased to guide you through all steps, explain, and show all peculiarities. Contact Corpheroes to incorporate a company today and start benefiting from the above business-friendly environment. We care.