Research now shows that Bulgaria is among the countries in East Europe which have managed to notable record a lot of advancements in most of the industries. For instance, the industry of IT as well as the tourism industry. The above-mentioned sectors and others have managed to bring closer foreign investments directly and for this reason, so many entrepreneurs have realized that this country has favorable regimes which support ownership of foreign companies and the ability to bring down the cost of employment and business compared to other countries in Europe.
Both foreign and local investors who set up companies in Bulgaria go through similar steps and regulations of the actual registration of businesses. For foreigners, they have to use the same steps of acquiring VISA and of course make the application of residency if at all they are staying longer to operate their businesses.
In Bulgaria, the procedure for forming a company has been simplified so that incorporation of the business is facilitated as well as the provision of one-stop-shop for faster incorporation. Due to issues such as language barrier, these foreigners obtain necessary support and assistance.
Everyone can set up a company in Bulgaria regardless of citizenship or residency. However, you will need to be at least 18 years old and have a valid ID or international passport. There are several things to consider before you initiate a company registration procedure:
- Your company must have an address in Bulgaria;
- Your company needs to have initial company capital which has to be deposited in a local bank;
- You must choose the name and scope of activity for your company.
The process for registration normally takes a couple of days after the completion and receipt of all the necessary documents.
The following steps must be conducted in order to obtain the required permits and licenses:
Step 1: Name of the Company
You must decide on the name of your company. Certain name parameters must be taken into account. Under Bulgarian law, the primary company name must be written in Cyrillic letters.
Step 2: Escrow Bank Account Registration
You will be required to register a special escrow account in some Bulgarian bank for the purposes of the entity’s equity and legal registration. The initial bank account registration is a mandatory step according to the Bulgarian rules and regulations.
Step 3: Business Address Registration
The next step in the process of your company’s setup is deciding on the address. Your company will need to have a Bulgarian address. You don’t need to own or rent a place as you can choose a virtual space. You do not have to have an actual office at the company address. However, it must be an actual address as it will be used for correspondence with authorities and especially with the National revenue agency (NRA).
Step 4: Registration in the Government Official Register
According to Bulgarian laws, every new business venture must be registered in the publicly available Official Commercial Register. The company is registered on the basis of an A4 application. The application is submitted personally by the manager (director) or a person authorized by him with a notarized power of attorney to register.
Step 5: Stamp Registration
All businesses need an official stamp that can be used for endorsement of its formal activities
Before beginning the registration procedure, you need to draft and sign or acquire the following documents:
- Articles of association;
- Founding protocol for the company;
- Signature specimen of the company manager;
- A couple of template declarations provided by the Registry agency;
- Bank statement for the company capital;
- Payment order for the state registration tax
All documents must be in Bulgarian. If any of the documents is in a foreign language it must be translated and legalized in Bulgaria
Once the company has been decided for set up, the investors must be ready to get into terms with the process of incorporation and mentioned above. These include issues of company taxation among many others as described above.