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Company Creation Overview

Create Company in Bulgaria

BULGARIA

Services in Bulgaria

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  • Car brokerage for private and business vehicles for companies

  • Tax office

  • Taxation - Accounting Support

  • Insurance coverage

  • Legal Support - Notarial Operations

  • Physical location - Logistics services - Transport

  • Customs formalities - Customs clearance

  • Market Research for Companies and Products

  • Leasing services

  • Real estate brokerage

  • Transfers of vehicles

  • Subsidized EU programs

  • Funded Programs - Loans

  • Company Creation

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Why Bulgaria?

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  • 10% Corporate income tax: 10% (flat-rate)

  • Bulgaria avoids double taxation thanks to Double Taxation Treaties with 69 countries all over the world

  • Personal tax: 10% (flat tax)

  • 5% tax on dividends

  • Cheap Workforce

  • There are excise duties on alcohol, tobacco products, luxury automobiles, electricity, and petrol. 

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Municipal councils, in the framework of law, decide on the exact amount of the local taxes:
– Municipal tax on immovable property from 0.5% to 2%
– Local tax for transfer of property from 1,3% to 2,6%

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What are the most common types of Bulgarian company formation?

  • A limited liability company – either sole-owned (EOOD) or with multiple shareholders (OOD)

  • A joint-stock company – either sole-owned (EAD) or with multiple shareholders (AD)

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What other requirements are there for an EOOD / OOD?

There needs to be at least one director, who is allowed to represent the company in front of all authorities; there is no requirement for the director/s to be residents of Bulgaria.

  • Monthly VAT returns should be filed if the turnover exceeds €25,000 or in case of voluntary VAT registration

  • The company should have a bank account and local address for efficient communication with the authorities

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How much is share capital needed for a joint-stock company (EAD / AD)?

The minimum share capital is BGN 50,000 (approx. €25,000), of which at least 25% or €6,250 must be initially paid up, and the remainder must be paid up within 2 years of incorporation.

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What are the other features of an EAD / AD?

  • The company should have at least three Board members

  • Shares can be easily transferred by endorsement to a new shareholder/s

  • An annual audit is required for all joint-stock companies

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