Bulgaria – Branch

Introduction to setting up a branch in Bulgaria

Bulgaria is favourable to foreign investment and the establishment of branches here is a popular choice. In particular, branches can take advantage of Bulgaria’s geographical situation, which is well positioned for exposure in south eastern European markets.

Additionally, international companies and foreign investors can benefit from the lowest tax system in the EU, low business costs and a small timescale for incorporation. When establishing a Bulgarian branch the parent company should abide by the Investments Promotion Act (ZNI), which regulates the legalities of branches.

What are the accounting requirements for a Bulgarian Branch?

Many of the biggest European banks are represented in Bulgaria and there is excellent organisation of e-banking.

Branches must register for VAT with the Bulgarian National Revenue Agency to obtain a VAT number for taxation purposes. Monthly VAT returns and annual tax returns should be filed.

The branch is required to keep its own financial accounts as well as preparing and submitting an annual balance-sheet and tax return.

What are the formalities regarding Bulgarian branches?

– A copy of the Certificate of Incorporation of the parent company
– A copy of the Memorandum and Articles of Association of the parent company
– A copy of the parent company’s Certificate of Good Standing
– A registered office address
– Representative of the Bulgarian branch

These documents are required by the Bulgarian Chamber of Commerce and Industry in order for branch registration with the Registry Agency commercial register.

All required documentation must be officially apostilled in the country of origin and legalized in Bulgaria.

What office facilities are available when registering a branch?

There are three main types of office available in Bulgaria:

Registered offices – a minimum requirement, providing an address for branch correspondence.

Virtual offices – providing telephone, fax and mail forwarding services off-site

Serviced offices – providing all the essential business facilities ready for immediate occupation.

We will handle every aspect of the branch formation for you. Using our expert knowledge we can offer a branch formation package in which we take care of branch registration, issue of the certificates of registration, local directors, local representative and place of business in Bulgaria, tax registration, VAT registration, and translation of documents (if required).

Our unique one stop solution for all European formation requirements also offers formation packages to set up multiple branches. The benefits for establishing multiple branches include further increased exposure and global presence, and we can organise everything for you.

A summary of Bulgarian Corporate Taxes is available here.