Since it became a full member of the European Union in 2007, Bulgaria has seen a major influx of regional and international investors coming to set shop in the country.
One of the main reasons attracting investors into Bulgaria is this: The country has the lowest tax conditions in the whole of EU. With the corporate income tax at a paltry 10% and the capital gains tax at 5%, Bulgaria offers investors a cumulative tax of 15% per year!
Setting up an LLC in Bulgaria
So how can you take advantage of these low tax conditions and set your presence in Bulgaria? How can you get the full benefits of trading in an EU country like the zero import/export tax and a large market for your products?
To register a company in Bulgaria, you do not need to jump so many hurdles along the process; just the normal requirements like being 18 years or older and compliance with the Bulgarian laws. In fact, you even do not have to be a citizen of a European Union country to qualify.
The only things you will need to register an LLC or OOD is an electronic signature and the business documents. Going through this process online would generally slash its price in half. The state tax is only 55 Euros.
There is also an additional notary fee and the cost of opening a bank in Bulgaria. However, you do not have to worry as all these costs combined cannot exceed 20 Euros
Requirements for registration
All you need to formalize this registration are the company’s by-laws and the declarations arising from the meetings held with the shareholders. Also, evidence of payment of the statutory taxes and the deposited capital will be needed upon registration. While the minimum capital requirement is 1 Euro, It is advisable to have just enough to help you buy stock and run the basic utilities without strain.
Taxes in Bulgaria are quite low. Corporate income tax is fixed at a flat rate of 10% per year making it one of the lowest in Europe while the capital gains tax is only 5%.
In addition, VAT in Bulgaria is fixed at 20% for all goods and services except for tourism which has a lower tax rate of just 8%.
Another advantage here you do not have to be physically present in Bulgaria to have all these processes done.
While this process can generally last about three days, it takes just a few hours with the help of professionals who specialize in business registration. You could remotely sign the documents and execute authorizations online.
To register a company in Bulgaria, the company name has to be written in Cyrillic. Additionally, all the documents submitted to fulfill the process of LLC/ OOD registration must be written in Bulgarian. This further emphasizes the need to hire a professional who could help you go through the whole process successfully.
Bulgaria offers its investors a host of benefits and opportunities. The entire registration process takes only 150 Euros yet you have access to the wider European market and access to cheap Bulgarian labor.