Company registration in Bulgaria and possible difficulties during the process
January 29, 2019
joining the European Union in 2007, Bulgaria has become one of the most
attractive countries in Europe for foreign investors, who are planning to
expand their business activities. The lowest corporate tax in the EU in the
amount of 10%, the lower salaries and wages and the fast-growing market in real
estate, production and IT sectors have been attracting the attention of many
investors in recent years.
of a limited liability company (the most commonly used type of company
registration in Bulgaria) is an easy and low-cost process, which however has
been encountering some difficulties in recent months. The Commercial Act of
Bulgaria and all acts, which stipulate the work and procedures of the
Commercial Registry in Bulgaria, were amended in the last years in order to
reduce the bureaucracy and to speed up all procedure of starting a new
business. The minimal founding capital is only 1.00 (one) Euro, equal to 2.00
BGN. Here we have to point out that merchants also enjoy
other benefits, such as limited liability towards creditors up to the amount of
the raising capital, respectively, up to the amount of the company shares, and
lower property taxes for immovable, owned by local companies in comparison to
the property taxes in other countries of the European Union.
legal point of view, if you wish to start your business in Bulgaria, there are
several points you should decide on, such as:
– What will be
the business activity of the new company?
– Who will be
the shareholder/s of the new company and in what amount their individual shares
– What will be
the total amount of the raising capital of the new company?
– Who will act
as a manager/s of the new company?
– What will be
the trade name of the new company?
– Where will be
situated the official seat and registered office of the company?
whole process of company registration in Bulgaria approximately takes up to 7
days, depending on how quickly the Bulgarian Commercial Registry reviews all
submitted documents and officially announces the requested registration of the
company. In some cases, it is possible the registration procedure of a new
limited liability company (LLC) to be completed within 3-4 days in total.
“Yosifova, Petrov and Ivanov” Law Office, as a
law office, which is specialized in Commerce Law, provides the full scope of
services, related to company registration in Bulgaria. This includes the
– A consultation
with the client, where we shall determine what is the most appropriate legal form
of a company to be registered, which can meet the legal and financial interests
of the client;
– Preparation of the full set of documents for the company registration in Bulgaria and sending all documents to the client for signing. If the client is abroad and all the communication is performed online, we shall also provide you with full instructions and explanation on how to sign the documents and how to sign, certify and legalize documents that need additional certifications;
– Opening a
capital account of the new company in local Bulgarian bank. If the client is
abroad, we can perform this step on his behalf on the basis of Notary certified
power of attorney;
– Submission of
the full set of documents before the Commercial Registry and obtaining
registration within 3 days after submission of the documents;
– If the client requests, we can provide the Rent of Registered Office service, where the company can be set up and which can be used for communication with third natural and legal persons and state/municipal bodies in Bulgaria (in return for an additional fee). The Rent of Registered Office service, also known as “Virtual office” enables clients to have a business address in Bulgaria without having to rent a place and employ administrative staff.
– If requested
by the client, we can also assist in opening a standard payment account in the
name of the new company, as well with setting the online banking option. Hence the
client can then control and operate with his Bulgarian company account online
The company registration in Bulgaria
may be a simple process in terms of documents and related expenses, but in recent
months many foreigners have encountered serious difficulties, especially while
bank accounts in local banks. Following the entry into force of the new
Measures against Money Laundering Act in 2018, Bulgarian banks became very
strict towards all applications by foreign citizens for opening of new bank
accounts. Currently, there are a number of banks that charge clients with a fee
of between 300 and 700.00 BGN just for reviewing the application of the client
for opening a capital bank account of a new company. This review of the
application approximately takesone week to be completed by the bank. During the
review process, banks usually ask for different information about future
business plans of the new company, information about the shareholders, etc. Due
to its successful work in the past years with some local banks, “Yosifova, Petrov
and Ivanov” Law Office has established good relations with several Bulgarian
banks, thereby allowing our Clients to receive the best possible services
within short terms and at no additional expenses.
Within addition to the company registration
in Bulgaria and ensuring all legal aspects of the process, we can assist you
for the accountancy of your new company.
Accounting is an extremely important element in starting a new business
and having a good accountant can save you time, money and unpleasant surprises.
“Yosifova, Petrov and Ivanov” Law Office works with several respected local
accounting companies, which can provide you with the full range of accounting
services that your company may need.
If you are planning registration of a new company in Bulgaria, please do not hesitate to contact us, using the Contacts section of our website.