Bulgaria’s economy is growing at a fast pace. This is largely attributed to the country’s stability and readily available skilled workforce. Bulgaria has a huge potential and that is why many entrepreneurs have expressed interest in opening a company in this great country. Additionally, Bulgaria has one of the lowest corporate tax rates in Europe. Companies in this country are also allowed to do business in the entire European Union.
But the big question is; how does company formation in Bulgaria works? In this article, we are going to give you a step by step process of how company registration in Bulgaria works.
Company formation in Bulgaria is simple and straightforward. The Bulgarian Registry Agency has automated most of the registration process, meaning that you don’t have to walk from one office to another to complete the registration process.
- Choose the business structure
The first thing you need to do is determine the type of business you need to establish. The business entity that you chose is important because it will determine how you will run your business, how you file for taxes, and how much your business assets are at risk in case your business falls.
Because there is so much at stake when it comes to business structure, you need to make the right choice. The most common types of business structures in Bulgaria include sole proprietorship, partnership, Limited Liability Corporation, and Limited Liability Corporation.
- Choose a business name for your company
Choosing a name for your company is a crucial process. Your company’s name needs to be identified with your brand. Therefore, it is crucial to choose a name that is relevant to your business and also easy to remember.
- Find a good attorney
The next process of registering a company in Bulgaria is finding a good attorney to help you in the registration process. Foreign investors who want to open a company in Bulgaria need to respect the rules and regulations put in place by the Bulgarian Registry Agency.
Failure to abide by these laws and regulations will result in rejection of your application process. To make the registration process simple, it is advised that you hire an attorney or a representative agent to help you with the registration process.
- Provide necessary documents to the Bulgarian registry agency
You will be required to submit certain documents to complete the registration process. These documents include:
- The certificate of incorporation with the name of company owners and details of the company.
- The decision to opening the business. The Bulgarian registry agency will require you to indicate the reason for opening the business. They will also do a follow up to make sure that the information provided is correct.
- A few bank statements that indicate your business financial information and details of your business account.
- A certificate of good conduct and include a short description of the future operation of the company in Bulgaria.
- Deposit the minimum share capital
Once your company registration application is approved by the Bulgarian Registry Agency, the next crucial process is to deposit the minimum share capital of 2 BGN in a local bank account. BGN2 is the minimum share capital required by the Commerce Act for the incorporation of a Limited Liability Company.
- Prepare and submit articles of association
You also need to prepare and submit an article of association for your company on the Bulgarian registry agency. Article of association is a document that specifies the regulations for your company’s operations and also defines your company’s purpose. This document will define how various tasks in your company will be carried out including the process of filing for tax and appointment of directors.
- Apply for a license
You can only operate your company in Bulgaria if your business is licensed. Your attorney will help you with the process of obtaining a license.
- Register your business for tax
The last very important process is registering for tax purposes. With the help of your lawyer, register for tax purposes, and apply for a bulsat number for your company.
