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Bulgaria LITE

Republic of Bulgaria – is a country in southeastern Europe, in the eastern part of the Balkan Peninsula. The country covers the territory of 111,000 square kilometres, Bulgaria`s population is more than 7 million people. Sofia is the capital, the official language is Bulgarian. The national currency – is lev. Bulgaria has an outlet to the Black Sea and borders with Greece, Turkey, Serbia and Macedonia. The country is divided into 28 regions, subdivided into the community. Bulgaria is a parliamentary republic, headed by the president.

The economy experienced a global crisis in 90 years; declining in the industrial production and agriculture was accompanied by a significant declining living standards. Thanks to reforming the country`s economic situation has stabilized, and in 2002 Bulgaria has been recognized by the European Commission as a country with market economy. Not being a classic offshore, however, the holding company registration in Bulgaria is justified due to the low rates of income tax. EU membership makes it possible to minimize the tax losses in respect of dividends due to the relevant directives.

The company registration in the low-tax Bulgaria jurisdiction has a number of advantages:

- preferential taxation system, in particular, the low corporate tax rate;

- EU membership, providing the company access to the European market;

- simplified procedure of the company registration, does not take a lot of time;

- possibility to use international standards at the time of submit the financial statements;

- signed the treaty on Avoiding Dual Taxation with by more than 60 countries.

The company in Bulgaria may be registered in the following forms:

- Limited Liability Company (OOD).

- Joint adventure (AD).

OOD primarily established to conduct trade and investment activities; the joint adventure may be engaged in insurance and banking services. In Bulgaria, the opening of the offshore company is accompanied by the implementation of a number of specific requirements.

You must have at least one director and one shareholder – private or legal persons without residence requirements for opening the company in Bulgaria. The minimum capital for a limited liability company is 5000 leva, 70% of which (this also applies to the joint adventure) must be paid at the time of registration.

The minimum size of the contribution of each participants (the value of 1 share) is 10 leva. It is forbidden for such companies to be engaged in insurance or banking. The company in Bulgaria in the form of joint adventure is established by the foreign partners, the time of participation is unlimited. It is one of the investment form in the country’s economy. The minimum size of the authorized capital for joint adventure is 50 000 leva.

The basic requirements include the presence of registered office in Bulgaria, accounting, annual financial reports and audit. Information about directors and shareholders of the company is in public access and is in the open registry. Therefore, the ability to use a nominee service is particularly relevant.

In Bulgaria, it taking into account the nuances of taxation, holdings are rather popular, which may be registered in any organizational-legal form. Such companies exercise control or participate in the management of other companies. It is also possible the establishment of the foreign company branch, which is registered outside the jurisdiction. The branch is the part of the foreign parent company and is not as independent legal entity. The branch must keep accounts and submit balance statement. The establishments of foreign companies acts in the same way.

In order to open a company in Bulgaria, you need to make notarization of documents and registration in local court. Company Registration usually takes about two weeks. There are wide opportunities to buy ready-made company in Bulgaria.

The taxation system in the country is built in accordance with the loyal tax department policies and with European recommended structures. Corporation tax rate is 10% and is incurred to all global business profits. The branch of a foreign company pays tax only from their income, which does not include the parent company income. Dividends received from the companies registered in the EU are not subject to taxation. This rule also applies to dividends, which are transfer to EU resident companies. Income tax at source, transferred to non-residents of Bulgaria, ranges from 5% to 10%. The standard VAT rate is 20%, reduced one is 7% and is applied in the case of accommodation services, if this concerning with tourism sector. The 0% rate applies in the case of goods and services supply within EU.

Карта Bulgaria LITE


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