Set up a company in Bulgaria
(2021 Complete Guide)
Why start a business in Bulgaria - get your advice from our lawyers and save time and money
With this article we will tell you how fast and succesfuly to start a business in Bulgaria. Also will pay attention to the most common questions asked by our clients related to residence permits, citizenship, accounting issues.
Before our experienced lawyers to advice you with choosing the most appropriate form OOD, EOOD, AD and open the bank account, let`s take a look first at this question -
Why start a business in Bulgaria?
The answer is:
Extremely favourable investment environment –
- Easy access to numerous markets – the European Union, Europe, Russia, Turkey, and the Near East.
- Low taxes – 10% corporate tax, -10% personal income tax and 5% dividend tax
- Educated and highly-qualified human resources
- Employees speaking foreign languages;
- 51 accredited univercities;
- Low financial risk – The Bulgarian lev is fixed to the euro (1 EUR = 1,9558 BGN). The country has been accepted in the Eurozone lounge – link to our article.
- Short terms for setting up a company – you get your VAT number in less than a week.
- EU funding and participation in procurement procedures – the whole application process for both is done fully online.
- Sustainable development – Bulgaria has announced its restoration and development plan, which allows for funding through various innovative and eco-friendly – more on the following link
- Outsourcing – Bulgaria is the best destination in Europe for outsourcing activities. In fact, almost every big IT company has a Bulgarian branch.
Register a company or buy a ready-made one
Set up a company with ease and start a business in Bulgaria. The procedure.
Completely online – Without your physical presence in the country with the service of buying a ready-made company. If you wish to be in Bulgaria for registering your new company, then you can enjoy even more beneficial prices from our part. You can request a quote via our contact form.
Simplified process and short terms – Your registration will be ready for less than a week. You can commence your business activities within a month.
Full servicing and reasonable fees – We have been assisting foreign clients in starting a new business or relocating their business to Bulgaria. Respect Consult is a long-standing trusted partner of Trakia Economic Zone, as well as hundreds of other companies in the region.
You get also a free bonus corporate address and accounting service options!
Registering a new company
The registration procedure in Bulgaria is extremely simplified. It takes a few business days. We just need to have the personal details of the owner and the manager(s), the company name, and the amount of the incorporation capital, in order to draft your bilingual documents. Whether to choose to incorporate as an “EOOD” or “AD” depending on your business size, you can rely on our consultants for advice.
Almost all Bulgarian banks require your presence in person for opening a temporary bank account for your business. There are several ways to go without this requirement. One option is to provide an IBAN from Paysera, for example, or to choose the option of purchasing a ready-made company. Ask our specialists for various other alternatives.
Furthermore, for several years now there has been a new requirement by the banks for opening a bank account, which is a residence in the country for the company manager/owner. For more information and tips regarding the acquisition of a residence status for EU or third country citizens, please, reach out to Lawyer Nikolay Vasilev, an experienced specialist in the field of commercail law.
Purchasing a ready-made company (shelf company)
Buying already registered companies can be a preferred option in certain cases when our clients cannot be physically present in the country in order to open a bank/incorporation account.
With ready-made companies the purchase happens with just one visit to the notary or the Bulgarian consulate representative, where you fill in and sign the required documents for the transfer of ownership. Within a few days upon receiving them, we register that transfer in the Bulgarian Trade Registry.
There are two types of shelf companies in Bulgaria: companies with history and companies without history and their purchase depends on your need at that moment.
- Without history – registered exclusively for that occasion
- With history – such companies are required for purchasing agricultural lands, etc.
We have a database and a wide range of ready-made companies that you can purchase from us. Our specialists assist and advise you depending on your business intentions, and can help you for each case related to any investment initiative.
Our team also provides follow-up services concerning potential EORI registration, monthly and annual accounting, etc.
We provide a comprehensive range of accounting services for your newly-registered company. Whether you choose to keep the enterprise inactive for a while, or you exercise a wide variety of activities, our specialists will assist you for the monthly and annual accounting. Some of the services we provide are: VAT registration, registration of foreign legal entities under the Bulgarian VAT legislation (online commerce), monthly and annual accounting, payroll, social security, annual reports, submitting annual tax return declaration, submitting annual financial statements, accounting and financial consultations, avoiding double taxation, etc. Prices start from €60 euro and vary depending on the work volume. Contact us for more information.
Acquiring a tax resident status
If you are a person and would like to optimize your tax payments in your country of residence, you can choose the next step, favoured by many entrepreneurs – applying for a tax resident status in Bulgaria, regarding natural persons’ income. This matters for the taxation of your global income (income acquired from local and foreign sources). In order to avoid double taxation in such cases, the countries sign Double Tax Agreements. A key element in such agreements is to define where the income will be taxed.
Obtaining the so-called Tax Residence Certificate (Удостоверение за местно лице) comes with various requirements that need to be met, including the essential criterion – a permanent address in Bulgaria (proven with an identity card, a passport, or a foreigner’s residence card).
In case of no permanent address in Bulgaria, there are other options – duration of a person’s stay in Bulgaria. An important aspect here is designating a “center for livelihood interest” for a foreigner in Bulgaria, which relates to family, ownership, job location, professional activity headquarters, or commercial activity location. It is a complex procedure, and you will need an experienced consultant to go through it successfully. You can count on us if you need any assistance for submitting your application for a Tax Residence Certificate.
As mentioned above, obtaining a tax resident status successfully is related to acquiring a residence in Bulgaria. Please, bear in mind that some countries have different tax legislation and the process of avoiding taxation in your home country cannot be completely avoided in such cases.
In any case, unless you are an EU citizen, a student, a pensioner, employed locally or a scientific researcher, obtaining a residence can be a difficult feat but not an impossible task. There are various types of residence in Bulgaria. If you wish to learn more about the different types and our respective services for each one, you can read more here. Our specialized lawyer Nikolay Vassilev will give you the best advice on legal residence in Bulgaria.
Judging from experience, the best approach seems to be first obtaining a residence and then registering your new company in Bulgaria. Upon starting your business activities you will begin to pay your social security here, which will ease your application for a Tax Residence Certificate.
Set up a company in Bulgaria. Send us an inquiry: