The incorporation of an entity in Bulgaria isn’t as hard as it may look. Bulgaria is one of the few countries in the world that are most-welcoming to foreign company formations. The country boasts of a business enabling environment for foreigners looking to start their companies there or establish branches of their already existing firms.
Either way, Bulgaria is an excellent destination for foreign businesses to thrive. One worry that mostly concerns such enthusiasts is the Bulgaria company incorporation process. But don’t worry, that’s why we are here to help.
Like the enabling business environment available in Bulgaria, incorporating an entity in this country is also a hassle-free and quick process. However, you should strictly adhere to the country’s laws and regulations for a better incorporation experience.
What is Incorporation?
Incorporation is the legal process used to form a company or a corporate entity. As a legal entity, the corporation started separates the firm’s income and assets from its investors and owners.
A corporation can be formed in almost every country globally and usually take the terms “Ltd” or “Inc.”
To our focus, incorporating an entity in Bulgaria is the legal process of legally declaring a corporate entity as separate from the owners. Incorporation ensures that a company is formally organized and that it’s now ready to exist officially.
Advantages of Incorporation of an Entity in Bulgaria
Incorporating a company in Bulgaria comes with several benefits to both you, as the owner (s) and the entity incorporated. So, below are some of the advantages of Bulgaria company incorporation.
• The owner’s assets are protected against the company’s liabilities.
• You can sell the stock to raise capital.
• Makes the ownership transfer process easy
• Features a lower tax rate compared to personal income
• Loss carry-forwards usually receive lenient tax restrictions.
As you have seen, there are more than enough reasons to incorporate a business. Corporations are the most widely used form of running a business globally. And while the jurisdictions might be different in all the countries, the expected benefits of incorporating an entity still stand.
Steps Involved for Incorporation of an Entity in Bulgaria
1. Pick and Register a Name
First of all, your entity needs a name, and you need to choose, verify, and, if necessary, reserve the name of your business.
2. Assign an Agent on Your Behalf
This is especially necessary for virtual Bulgaria company incorporation. You’ll need to appoint an agent to represent the company if you aren’t in the country.
3. Minimum Capital Deposit
As part of the incorporation of an entity in Bulgaria process, you have to deposit a minimum of BGN 2 as the share capital to the local bank. It’s set at that because it is the lowest cost of operation in the country.
4. Tend to Essential Documents
After depositing the required minimum amount to the local bank, you then have to prepare and submit the following documents:
• Articles of Association
• Memorandum of Association
• List of Directors
• Directors’ written consent
• And Statutory declaration of the company
5. Work on the License
The next step that follows is to verify and apply for your Bulgaria company incorporation license, which comes with a 10% flat tax rate.
Finally, you need to apply for the Bulstat number for an LLC in Bulgaria and register for tax purposes. Once you are through with that, you’ll have officially completed the incorporation of an entity in Bulgaria.
Parting Shot
It is an incredible idea to incorporate a company in Bulgaria and one stands to benefit a lot. The country of Bulgaria is friendly to foreigners and foreign-owned businesses, especially when it comes to their taxation methods. It is a country that enjoys amazing peace and that provides an incredible business environment for everyone including foreigners.
Incorporating an entity in Bulgaria is not a very complicated process as outlined above. However, it is important to get professionals to get the job done efficiently.
