Bulgaria is becoming an increasingly attractive target for large business companies and organizations. However, more and more Russians, British, Japanese, Chinese, Americans are settling permanently with their families in Bulgaria. Many of them decide to start a business in our country. For them, basically, we wrote this “manual”.
Step No. 1 – Choosing a company name.
The selected name must be checked for uniqueness by looking at the register of the Commercial Register. If the name is unique, it needs to be reserved – 13 € or 25 € depending on the reservation method.
Step No. 2 – Choosing the form of organization.
Having decided on the form of organization, it is important to correctly choose the form of taxation.
Step No. 3 – Preparation of documents.
Collection of documents, signing of an agreement between participants, determination of the size of the authorized capital and payment of state fees. Submission of documents for verification in the “service of registration”.
Step No. 4 – Assigning a legal address.
As the legal address of the company, you can use the address of real estate owned by the applicant.
Step No. 5 – Deposit of the authorized capital to the bank account in the bank.
You must open a separate account for the share capital. It is impossible to withdraw money from this account until the registration of the company is completed.
Step No. 6 – Registration of the company in the commercial register of the National Trade Agency.
Step No. 7 – Submission of documents to the tax service.
Within 12 days, a certificate of VAT payer is issued (the procedure is free).
On the official website of the investment portal of Bulgaria investbg.government.bg, you can find the latest information on the procedure for starting a business!
Documents for registration of EOOD/OOD (LTD.)
If the owner of the registered IP is one person, it is necessary to prepare:
- Application in A4 format;
- Decision on the creation of EOOD;
- Constituent act;
- The consent of the manager to play the role of the manager and a sample of his signature;
- A receipt on the payment of state duty and the contribution to the account of the authorized capital;
- Declaration on the authenticity of documents, etc.
If the owners of the LLC are two or more people, it is necessary to prepare:
- Application (A4 format);
- Constituent act (Charter);
- Constituent Protocol;
- The consent of the manager and a sample of his signature;
- Declaration from the Manager under paragraph 141 of the Trade Law;
- Receipt of payment of state duty;
- Manager’s declaration of authenticity of documents;
- Bank statement confirming the accrual of authorized capital to a bank account, etc.
Taxes in Bulgaria in 2019
- Corporate tax – 10%.
- VAT – 20%.
- Income tax – 10%.
- Tax on dividends – 5%.
Annual financial statements
Legal entities are required to submit 3 reports annually:
1) Annual financial report. It is submitted until June 30 to the Trade Register. The penalty for late submission of HFOs is from 200 to 3,000 leva (for repeated violations – up to 6,000 leva).
2) Tax return (Annual Tax declaration). It is submitted until March 31 to the Tax Inspectorate. The penalty for late submission of the report is from 500 to 1000 leva (in case of repeated violation – up to 2000 leva).
3) Annual activity report. Served until April 30 at the National Statistical Institute. The penalty for submitting a report with a delay is from 200 to 2000 leva (with the next violation – from 2000 to 6000 leva.
In 2018, some changes were made for “null” firms that did not carry out any activities.
For example, firm “null” now can not file a tax return if they provide a declaration of lack of economic activity.
Familiarizing themselves with the new changes can be in the “State Gazette» № 92 from 17.11.2017.
Alphabetical truth in business
Being in Rome – doing like the Romans. It may not be the most accurate saying in this case, but the best way to succeed with your business in a foreign country is by hiring local experts to advise and assist you. Try VD&A – if you want modern and successful solutions. It is a Bulgarian consulting and legal company with international activities and offices in Dubai, Hong Kong and others.
Thanks for the good guidance! Very helpful article!