Understand the Jurisdictions Setup Requirement Before Proceed Your Company Registration in Bulgaria
Bulgaria has been a member of the European Union since 2007. Further, it has a very strong currency with a lot of economic freedom. The country has also posted a lot of positive trends ever since its admission to the EU. This makes it a perfect destination for establishing a thriving business in SE Europe. Well, it also explains why the number of investors interested in company registration in Bulgaria has gone up. Before the registration of a business entity in Bulgaria, however, there are a couple of procedures an investor will have to undergo. Especially if you are a foreigner, you may find it a bit overwhelming. Therefore, you need to use business incorporation services to simplify the process and get you the results as soon as possible. You can talk to us if you need any help with company registration in Bulgaria.
Why Invest in Bulgaria
A chance to invest in any EU country will always be a coveted one due to the strong economic block, incentives offered to foreigners by the government, and access to millions of buyers. However, for a country like Bulgaria, certain specific things make it particularly appealing. Some of these factors and reasons why you should invest in Bulgaria include the followings:
- Bulgaria is a member of the EU – the European Union is one of the strongest trading blocs in the world. The union’s membership comes with incredible advantages. These include very nice tax incentives, consumer protection and access to millions of buyers in various markets. This fact alone greatly enhances your chances of starting a venture and succeeding in Bulgaria.
- Strong currency – a strong currency implies a strong economy and a higher purchasing power. It will help you especially if you are involved in the import/export market.
- Economic freedom – the economic environment in Bulgaria favours the formation of any kind of business. So long as you remain within the precincts of the law, you have the freedom to trade without any limitations or unnecessary restrictions from the government.
- Ideal location – Bulgaria is in Southeast Europe and this opens it up to countries in eastern and southern Europe, as well as to Turkey. All these markets are incredible for trade.
- Low costs and taxes for employees – if you will be needing staff in your foreign company, then you will be very concerned about the cost of hiring your staff. However, it is relatively easy to acquire very skilled labour and you will also enjoy low taxes on them. This is good for the profitability of any venture.
Types of Legal Entities in Bulgaria
For those interested in company registration in Bulgaria, here are some of the legal entities you may consider-:
Bulgarian Limited Liability Company
According to the data by the Bulgarian Foreign Investment Agency, the limited liability company is the most preferred entity for investors interested in starting small and medium businesses. In this form of business, the liability of the shareholders is limited to their contributions to the share capital of the company.
Starting it in Bulgaria is advantageous for many reasons, with one of the main ones being that you are don’t need to submit a minimal share capital at the time of incorporation. You will, however, need to submit a memorandum of association and articles of incorporation. A director who is appointed by the general meeting of the shareholders is responsible for the day to day running of the company.
Joint Stock Company in Bulgaria
A joint-stock company is a worthy consideration for company registration in Bulgaria if you intend to start a major business in the country. For its incorporation, there have to be at least two individuals or two corporate bodies, and minimum share capital of 25,000 EUR for a closed joint-stock company and 50,000 EUR for an open joint-stock company. The company must also have by-laws which contain:
- name and the registered address of the company
- the purpose of the company
- details of the capital stock and the shares
- the name of members and the type of their shares
- methods of appointing the board of directors
- the procedure for liquidating the company
Sole Traders in Bulgaria
If you are a single entrepreneur looking forward to doing business in Bulgaria, then you can register for a sole proprietorship. You will be fully liable for the debts of the company. Anyway, you will also enjoy the profits of the company fully. You don’t need a minimum share capital to register as a sole trader. In the case of liquidation, there will be no separate liability from the owner and the business and their assets.
Partnerships in Bulgaria
The other business entity you may consider during company registration in Bulgari is general or limited partnerships. The difference between the two is that members of the former have unlimited liability while the latter have limited liability.
Don’t Know Which Business to Register?
If you are not sure of which legal entity to register, we can help you evaluate your options. We can advise you on the best investment vehicle that will help you achieve your business goals. Our team of competent attorneys, accountants, and tax experts will help you in every aspect of business formation in the country.
It will interest you to know that with our services, you will not have to fly into the country for company registration in Bulgaria. All you have to do is give us, and we will do everything on your behalf. Contact us now and learn how we can help you incorporate your company in Bulgaria.