Company in Bulgaria
Company in Bulgaria
General information about opening business in Bulgaria
As a consequence of very low tax rates and additional facilities for investors offered by Bulgaria, it is a real alternative to Western European countries, which often have much stricter company registration regulations. The low prices of local properties, including apartments for rent, as well as investments in local vineyards are also tempting. In the light of the planned changes in the tax law in Poland, the country seems all the more attractive as the legal system does not differ much from Poland. Thanks to this and a relatively short distance from Poland, it is possible to transfer the actual business to the country without any problems and with market justification without violating the tax avoidance clause.
Open company in Bulgaria and taxes in Bulgaria
The income tax rate in Bulgaria is very favourable and amounts to 10% for both personal and corporate income tax. As far as VAT is concerned, the standard rate is generally 20%; a reduced rate of 9% for certain goods and services and a 0% rate are also provided for. In addition, up to the amount of EUR 25 thousand, there is a subjective exemption from this tax. Interestingly, in Bulgaria, a fixed exchange rate of the local currency – the Left – to the Euro has been established and is 1 euro = 1.96 Left.
Open business in Bulgaria
Company formation in Bulgaria is a way to meet people who, for various reasons, would like to do business outside the mainstream. Bulgaria is a financially attractive jurisdiction and at the same time guarantees the entrepreneur security in the form of a common market and European Union legislation.
The most advantageous forms of doing business in Bulgaria are undoubtedly the limited liability company (OOD or its one-man version – EOOD) and the joint stock company. Company registration in Bulgaria in the form of a limited liability company requires at least one partner and a director. Interestingly, none of them must be Bulgarian citizens or residents of Bulgaria. The minimum capital is the equivalent of 1 euro and this amount must be paid into a bank account established on site. The founding protocol must be signed by the founders in Bulgarian. Importantly, the shareholders of the company OOD are not liable for the company's liabilities, as this is limited to the amount of contributions covering the company's share capital. Every year, by 31 March, the company is obliged to submit a financial statement to the Bulgarian commercial register.
Ready made company in Bulgaria
It is possible to buy a company in Bulgaria, but due to simplified procedures and short time, opening a company in Bulgaria seems to be much more beneficial. It should also be remembered that the purchase of a company in Bulgaria carries a risk concerning its history and the need to verify the obligations and all documents. Therefore, it is important to consider all aspects of such a process before taking any steps that will result in the purchase of a company in Bulgaria.
Are you interested in establishing a company in Bulgaria or do you want to talk about it? Entrust this task to professionals. Contact us.