Are you thinking of opening a company in Bulgaria? If yes, then you are making the right decision. There are many benefits to starting a business in Bulgaria. First, the registration of a company in Bulgaria is incredibly simple. There is no bureaucracy as it is the case with other European countries. Secondly, Bulgaria has a skilled and multilingual workforce that can propel your company to success. Thirdly, tax in Bulgaria is reasonable and favorable to foreign investors.
But the biggest hurdle that most foreign investors face is how to open a company in Bulgaria. Company formation in Bulgaria is not a complicated process as many people think. It is a simple process that will take you a few days to complete if you comply with all laws and regulations that have been put in place by the Bulgarian Registry Agency. In this post, we will discuss the process of opening a company in Bulgaria.
How long does the company registration process take?
Generally, the process of forming your company in Bulgaria take between 1-2 weeks to complete.
Steps on how to open a company in Bulgaria
- Determine the right company structure
Your company’s structure is crucial because it determines how our company will operate, tax filing, and how much assets will be at risk if your company collapses. Choose the right structure that suits your business. Common types of company entities in Bulgaria include
Sole proprietorship- run by a sole proprietor and the entrepreneur is fully liable for the company debts and profits.
Partnership – formed by two or more member with unlimited liabilities
Limited Liability Corporation- This business structure allows the business owner to protect their personal assets from business liabilities.
- Select a name
Once you have determined your company’s structure, the next step is choosing a name for your business. Choose a name that is simple and easy to remember.
- Hire a reputable attorney
This is a very important process that most people usually overlook when opening a company in Bulgaria. A lawyer will not only help you overcome the challenge of the language barrier but will help speed up the registration process. There are so many laws and regulations that you need to company before you open a company in Bulgaria. Navigating through all barriers on your own is not easy. An experienced attorney is familiar with the laws and regulations that have been put in place and will help you navigate through the process thus making the process easy for you.
- Submit necessary documentation
You need to submit relevant documents about your company to the Bulgarian registry agency including:
- The certificate of incorporation with your company’s names and details.
- Reason for opening your business.
- A few copies of your company’s bank statements
- A certificate of good conduct and a brief description of your company
- Deposit the required share capital
Once the registration process is complete, the next step is depositing the minimum share capital of 2 BGN in a local bank account. BGN2 refers to the minimum share capital required by the Commerce Act for the incorporation of a Limited Liability Company.
- Prepare and submit articles of association
You will be required to prepare and submit an article of association of your company on the Bulgarian registry agency. Article of association is a simple document that details your company’s regulations, operations, and purpose. It defines how duties in your company will be conducted including the process of appointing directors.
- Apply for a license
The Bulgarian authorities are very strict and don’t allow companies to operate without a license. Therefore, for you to open your company, ensure that you apply for a license. Consult your attorney to help you with the application process or get in touch with “BG Company” Ltd.
- Register your company for tax
The final process is registering for tax obligations. Not paying tax in Bulgaria in a criminal offense and can result in the withdrawal of your license and even jail term. Before you open your company, ensure that you register for tax obligation, then apply for bulsat number.