Do you want to start a business in Bulgaria? Start your own company here? This material will help you orient yourself in the political and economic situation in the country. We continue with the presentation of the business risks that British businessmen in Bulgaria could face. The article uses information from material posted on the British Government’s official website www.gov.uk. The subjects of Her Majesty the Queen of Great Britain could benefit from this info directly from the site. But we promise you that we will bring you the “dish” warm, more interesting and up-to-date. And you will also receive additional business info as well as useful advice from the experts on our site. A site specializing in the provision of corporate services related to the formation of new companies in Bulgaria. And also with assistance in opening bank accounts, payment of various state fees and taxes, etc.
Perspectives and Future Trends
You have already met the political and economic situation in Bulgaria. Overall, the expectations for the future development of the country are optimistic. Domestic demand will continue to make a positive contribution to economic growth. European trade partners of Bulgaria will continue to provide steady pressure of pushing the country to the right track of development. Bulgaria’s exports are expected to continue to grow and perform well.
According to the European Commission, investments in the country will remain stable. They are still not large enough, with a major share of EU funds. However, the expectations are for acceleration and improvement of the post-EU programming period 2014-2020. Inflation will rise to 1 percent due to strong domestic demand, rising energy prices and food prices. This should reverse the deflationary trend experienced since 2013.
The labor market will shrink slightly. But this is a short-term trend that is expected to reverse again in 2019. The aging population and emigration will lead to a reduction in unemployment to about 7%.
Expectations on total government debt are shrinking to around 25% of gross domestic product.
Bulgaria’s accession to the European Union was tied up with decisive steps to tackle corruption in the country. It had deeply penetrated state structures and local government structures. Mafia organizations have had an impact on entire sectors of the economy. Serious steps have been taken by the state to fight corruption. In the end, Bulgaria was admitted to the EU in 2007, meeting the requirements in this area. But the problems were far from resolved. It was even more determined and in a short time for Bulgaria to make efforts to conduct judicial reform and tackle organized crime.
Joint efforts and Verification Mechanism (CVM) gave results. Since then, the reports of the European Commission’s CVM have noted the progress Bulgaria is making. The focus of the efforts of the Bulgarian authorities on the reported weaknesses is seen. The latest reports point to some progress. But also emphasize that it will take even more to get the country out of the CVM.
The fight against corruption is a long-term priority for Bulgaria. Judicial reforms have led to the creation of new structures in the judiciary and the executive. As well as to a number of legal improvements. However, corruption remains deeply rooted. The European Commission has recommended Bulgaria to better protect its anti-corruption institutions. To protect them not only from criminal organizations but also from political influence. In addition, these institutions must be transparently managed. And judiciary appointments should be subject to more effective control.
Big problem was the so-called “public competitions” for government contracts related to EU funds. The last major corruption scandal in Bulgaria was related to these European funds. The scandal seriously shook the ruling GERB party. There have been great abuse with EU funds distributed by the state and local authorities for the construction of “guest houses” in the tourism industry. This funds was misused by various local oligarchs. The money was awarded to the front men, then were used for construction of private villas for oligarchs. An investigation is currently underway for all over 200 program projects. Many resignations have been requested and resigned, both at state and local level. Despite the enormous scandal, however, Boyko Borissov and the political party GERB won the European Parliament elections with a solid lead.
Corruption Perceptions Index of Bulgaria is 42 points. This places the country at 77th place among 176 countries in the world. This is the last of all EU Member States.
Intellectual property in Bulgaria is now well protected. It is under the protection of both Bulgarian law and international treaties. Bulgaria’s legislation in the field of intellectual property meets the standards of most European Union countries. Bulgaria is also a member of the World Intellectual Property Organization (WIPO).
In many ways Bulgaria is a paradise for the foreign investor. Anyone who wants to start a business in Bulgaria will enjoy many advantages. These include some of the lowest taxes and fees in the EU. Relatively low fuel costs. Cheap and skilled labor. Geographic location is also a huge plus for business in the country. The actual membership of Bulgaria in the EU is a big advantage for the movement of goods and commodities.
Corruption. But there is hardly any country in the world where this problem is solved …
Euroformat.eu is the best help for all foreign businessmen who want to start a business in Bulgaria. The site is part of VD & A – one of the most respected law firms in Bulgaria. Euroformat.eu was created to help foreign businessmen register their company in Bulgaria or open bank accounts. In addition, Euroformat.eu offers assistance in accounting for corporate affairs and paying taxes and fees to the state.
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