Registration of company in Bulgaria
Businesspersons intending to launch commercials in Europe consider company registration in Bulgaria as a profitable variant regarding state location, a favorable legislative basis for organization foundation and low tax rates. Deciding register company in Bulgaria, executives may count on next-mentioned profitables and benefits:
- excellent reputation;
- full compliance with EU norms and regulations;
- affordable cost of establishment and further operational support;
- income taxes ratio is 10% for European organizations;
- dividends are taxed at a rate of 5%; for outgoing dividends to EU countries is 0%;
- value added tax is 20%. Firms having an year-round turnover of 50 thousand+ Bulgarian levs pass registration for paying VAT;
- agreement on absence of double taxes;
- possibility of conducting accounting in accordance with IFRS;
- availability of the gambling project as legally permitted structure.
Firm registration may be made in one of next-mentioned organizational forms:
- individual;
- JSC;
- LLC with multiple holders or one owner.
Company formation in Bulgaria: organizational forms
Frequently-chosen organizational structure is single ownership LLC. Deciding open a company in Bulgaria, consider its key characteristics, particularly, next-mentioned:
- shareholders may be either organization or an individual. Only a natural person can be a director of such enterprise;
- there aren’t mandatories relating to residence of firm’s secretaries or appointed heads;
- min capital is 2 levs. At least 1 lev is deposited before enterprise goes through establishment;
- data on beneficiaries and directors is recorded in public register, respectively, these data are in the public domain;
- the firm must have a physical office;
- it is also mandatory to keep accounting records: the formation of relevant documentation and records.
Founders need to appoint a manager who implements and manages enterprise. Obviously, manager needs to make application for approbation in local register. There may be several managers. They can manage friendships together, separately, separately, and together. Relations between friendship and councils A decision in management agreement that arises between director and founders.
Price for company registration in Bulgaria
Prices of firm formation in Bulgaria vary based on how many beneficiaries are involved in launching, activities area, deal type and certain aspects.
Best quickly registering company in Bulgaria – buying a ready-made firm. Pricing is influenced by some points: possible debts of enterprise, general history of operations, and so on. It should also be taken into consideration that enterprises will incur several operating costs: its total amount varies between 600-1000 euros per year. However, in each case there is an individual calculation and modeling of costs.
Thus, how to set up a company in Bulgaria? Enterprise foundation is performed in four stages.
- Denomination selection.
- Preparation documentation, in particular, collection of copies of passports, documentation confirming existence and verification of valid address of other responsible persons.
- Necessary fees payment.
- Passing verification on a common central platform to ensure data about the enterprise is accessible to public.
After receiving the documents, you are given an incoming number, under which the application is registered. This number is used to track the status of document processing on the Trade Register website. If errors are found during processing, the site will display it and will be given 48 hours to correct the errors.
The name of the enterprise can be checked for compliance with the specified norms and correctness, as well as, according to the criterion, whether it is unique and not previously used. Here, this, as well as reserving a particular name, can be done through an online service. As for other denomination points, it must also end with LLC or OOD. All names are compiled and recorded in Bulgarian. Some documents also require a notarized translation.
Taxes
This state attracts beginners and experienced capital holders with reasonable tax ratios. Firms pay income taxes of 10% and value added of 20%. Residents pay taxes on incomes that were received by the enterprise, however, if such incomes are received in Bulgaria.
Reduced ratio for paying value added is 9%. Such a rate is possible for property owners who rent out their property. In the event that enterprises operate in the industry of cross-border transportation and export, they do not have to pay VAT. In addition, if the annual turnover of the company does not exceed 50 thousand levs, it isn’t covered by these taxes.
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