Company registration in Bulgaria in 2021
Company registration in Bulgaria in 2021 is relevant among beginners and experienced entrepreneurs, as the country has a favorable geographical location, the status of an EU member. In the Republic there is a relatively low rate of corporate tax, it is possible to open a company in a short period of time, for foreign investors there are favorable conditions.
The advantages of opening a company in Bulgaria
Opening a company in Bulgaria in 2021 has many advantages. This jurisdiction has a favorable climate for entrepreneurs, the government creates good conditions for the development of non-resident companies.
Why it is worth opening a company in Bulgaria in 2021:
- The country has EU member status;
- Many well-known European banks are concentrated in Bulgaria;
- There is an opportunity to enter the EU market;
- It is possible to issue a residence permit;
- It is possible to open a business remotely;
- The corporate tax rate is low.
The country has created a positive climate for investors from abroad. The state has agreements with many jurisdictions to avoid double taxation. Registration is fast enough.
How to establish a firm
When planning to open a business in Bulgaria, it is important to familiarize yourself with the main legal forms. It is possible to register a limited liability company or joint-stock company. Non-resident companies can open a branch in the country. Persons with resident status have the right to work as a sole proprietorship.
Requirements for opening an OOD:
- Provision of documents to identify all owners;
- Distribution of capital in a special account;
- Drawing up a charter;
- Director must be at least 1;
- A minimum of 3 board members is required.
The OOD form is considered one of the most popular, especially when registering small or medium-sized businesses. An alternative form is the joint stock company (AD). The most common form is used to create large businesses.
Before opening any type of business, it is required to choose and reserve the name of the organization. A minimum amount of capital must be deposited with a local bank. It is necessary to make an application for a license in the country, to register with the tax authorities.
Tax rates and opening a bank account
The rate of income tax is one of the lowest in the EU at only 10%. The standard VAT rate is 20%. Dividend tax is 5%. Duties on social insurance for the employer is 19%, for the employee - 13%.
Requirements at banks regarding opening a corporate account may vary depending on the organization's policy. However, there are some standard conditions - it is necessary to provide Charter, basic information about company, confirmation of registration, information about directors.
The most popular banks in Bulgaria are Eurobank, First Investment Bank, Union Bank, SIBank. To consult on company registration and account creation, please contact our specialists at IT-OFFSHORE.