Company registration in Bulgaria

Sofia, 11 October 2017

The registration of investment vehicles in Bulgaria has several benefits. The incorporation of a Bulgarian company is effective. A symbolical sum of 1 Euro is the minimum required capital for a company to be registered. It may take as little as few days for a company to be registered in Bulgaria provided that all the necessary documentation is properly prepared and available.

There are no financial or filing obligations for a registered company that has no activity. The only obligation in this case is the submission of an annual tax return. However, such annual tax return can simply be submitted by the manager of the company without the supervision of an accountant.

Bulgaria enjoys the lowest corporate tax regime in Europe, with rates as low as 10 % on profit and 5% on dividends. Bulgaria has entered into a multitude of bilateral international agreements so as to prevent the risk of double taxation (such tax treaties were signed with a important number of countries such as United Kingdom, Turkey, Russia, etc.). As a result, a much more favourable tax legislation is applicable.

Unlike the laws of other EU countries, there are no requirements with respect to the minimum number of people to be employed by a Bulgarian company. A Bulgarian registered company may have only one employee that can also be the main shareholder.

There are no intricate requirements regarding the object of the company`s activity. Except for the large businesses (banks, insurance companies, etc.), companies in Bulgaria can undertake any activity it chooses. In addition, the licenses regime is rather liberal and there are only few activities that require a license.

One of the most important incentives on doing business in Bulgaria is the exception on the EU duty. As a consequence, a company may produce goods in Bulgaria and then export these goods completely tax-free to another EU member country.

The Bulgarian currency (Leva) is pegged and fixed to the common European currency (Euro) and therefore has remained unchanged for the past years, allowing Bulgaria to offer a stable currency.