Opening a company in Bulgaria in 2023
Opening a company in Bulgaria in 2023 is profitable. First of all, there is a low rate on income tax - 10%, on dividends - 5%, there is no need to pay fees for selling a business. The process of business registration is considerably simplified and takes only a few days. If a LLC is registered, the authorized capital is from 2 BGN, which is equivalent to €1.
LLC or AO: which to choose?
Before registering a business, it is necessary to choose a form of legal entity. The most popular choices are LLC or AO.
LLC in Bulgaria
To open a LLC you need at least 2 founders who can be either locals or foreigners. The authorized capital is minimum 2 BGN. It can be paid in cash or property. When registering the LLC at the Commercial Register (Turgovski registrar) the state duty must be paid.
LLC in Bulgaria has its own peculiarities:
- On the one hand, the founders are liable only to the extent of their contributions to the share capital. On the other hand, they are personally liable for the debts of the company in case of non-fulfillment of the obligations related to the business registration.
- LLC has management bodies: general meeting of founders, managing director or board of directors, as well as an auditor (if necessary).
- The LLC must keep a ledger and file regular reports with the tax authorities.
JSC in Bulgaria
JSC allows to divide the ownership and management of a company between the shareholders. To register a business, 1 founder is enough. The authorized capital must be at least 50.000 BGN (€25500). It can be contributed in the form of cash or property
JSC in Bulgaria has its own peculiarities:
- The founders are responsible only within the limits of their contributions to the share capital.
- The organization is managed by the general meeting of shareholders, which elects the board of directors and the auditor.
- JSC is obliged to keep an accounting book, regularly submit reports.
How to open a business in Bulgaria
Having decided on the form of a legal entity, to register a company in Bulgaria 2023 it is necessary to perform the following steps:
- Come up with a name, check its uniqueness in the Commercial Registry.
- Take care of the legal address, which will be indicated in the founding documents, invoices, contracts, etc. A virtual office is allowed, but the organization must have a mailbox where official letters will arrive.
- Determine management bodies, the amount of share capital.
- Open a bank account, where the share capital will be deposited (presence of the owner is mandatory).
- Collect registration documents - Charter, minutes of the company establishment, certificate from the bank, confirming the payment of share capital, etc.
- Go to the notary to have the documents authenticated and signed by the manager.
- Submit application for registration to the Commercial Register.
- Wait for registration, collect certificate.
- Obtain VAT number.
Registering a LLC in Bulgaria usually takes 1 to 2 weeks, a JSC up to 4 weeks. In order for the procedure to take as little time as possible, it is important to get all the documents right.
How to open a business in Bulgaria fast
Contact IT-OFFSHORE to open a business in Bulgaria in 2023.