Two of the most important aspects when you invest in Bulgaria are the bureaucracy system and the economical requirements. And as a future business leader you need to be familiar with both of there so there is no need to underestimate any details when it comes to papers or money because they can highly influence your company. Once you register a company in Bulgaria, the details of your company become public and this is one first responsibility that you have to consider. So, let’s look at some of the bureaucratic and economical aspects that you absolutely need to be aware of before investing in the Bulgarian market.
Company registration in only 4 steps
Opening a company in Bulgaria is not complicated but it has a strict process that needs to be followed in order to have a legit business and no problems with the local system and its requirements. The steps that you need to follow are very specific and to the point, so you don’t need to do a developed research on the matter.
-You will need an applicant form that states what are your intentions. This is a standard form that any Bulgarian lawyer or state authority in charge with new businesses can give you.
-Establish the company managers and funders and add to the folder a certified copy of their signatures and IDs. This will be your basic team and those people that will help you the most while you are implementing your business
-Put together the company’s constitutive documents such as status and capital
-Pay the state fee that applies to the type of company that you want to open.
Lowest tax rates in the European Union
Taxes are not high and the most common one is 10 percent of your company’s profit. But, until you make a profit, you don’t really have to worry about this kind of payment. VAT registration in Bulgaria is available for both residents and non-resident investors. As a Bulgarian company, you can register for VAT at any given time and your registration will have a 24 months validity period. However, when your company has a turnover that is higher than 50.000 BGN for over a year, VAT will be filed monthly and annual accounting services must be provided to the financial authorities of Bulgaria.
Personal registration or firm registration process
An interesting and efficient aspect of opening a Bulgarian company as a foreign investor is that you can do all the steps yourself and with the help of your team or you can hire a professional firm to do it for you. There are plenty of local firms that will facilitate your access to the Bulgarian market for small and reasonable fees. They will help you put the papers together, speed up the registration process and keep you informed about the entire process. What is a great advantage of hiring a firm to set up your company from a legal perspective, is that they have lawyers that can consult you and give you the best solutions for your needs so there is no way you can go wrong or do any mistakes that can slow down the process.
Once you are secure on the information that you learned, and you know exactly what you want to obtain from your future company, putting together the bureaucracy and the economic requirements can be rather easy. Stay informed about the legislative changes in Bulgaria that directly concern your business plans and try to avoid diving into a field that you are not legally familiar with. This will save you a lot of delays and extra fees that can limit your starting budget and can also make you have obstacles that otherwise, you shouldn’t have to deal with!
Published by Monica Nowicki