Opening a company in Bulgaria in 2023
Opening a company in Bulgaria in 2023 can be a good idea. First of all, there is a low rate on income tax - 10%, on dividends - 5%, and there is no need to pay fees for selling a business. The process of business registration must be considerably simplified and takes only a few days. If an LLC is registered, the authorized capital is from 2 BGN, equivalent to €1.
LLC or JSC: which to choose?
Before registering a business, it is necessary to choose a form of legal entity. The most popular choices are LLC or JSC.
LLC in Bulgaria
To open a LLC you need at least two 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 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 company's debts in case of non-fulfillment of the obligations related to the business registration.
- LLC can have management bodies: a general meeting of founders, managing director or board of directors, and an auditor, which is optional.
- The LLC must keep a ledger and file regular reports with the tax authorities.
JSC in Bulgaria
JSC allows division of the ownership and management of a company between the shareholders. To register such entity one founder is enough. The authorized capital must be at least 50,000 (€25,500). It can be contributed in the form of cash or property.
JSC in Bulgaria has its 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 and regularly submit reports.
How to open a business in Bulgaria
Having decided on the form of a legal entity, it is necessary to perform the following steps to register a company in Bulgaria 2023:
- Come up with a company's name and 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 and 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, the company's establishment minutes, bank certificate confirming the payment of share capital, etc.
- Go to the notary to have the documents authenticated and signed by the manager.
- Submit an application for registration to the Commercial Register.
- Wait for registration and collect the certificate.
- Obtain VAT number.
Registering an LLC in Bulgaria usually takes from one to two weeks, while a JSC registration can take up to four weeks. It is important to get all the documents right to ensure the procedure takes as little time as possible, .
How to open a business in Bulgaria fast
Contact IT-OFFSHORE to open a business in Bulgaria in 2023.