Introduction to setting up a Company in Bulgaria
Bulgaria is favourable to international businesses with a range of benefits available to encourage foreign investment through subsidiaries.
Bulgaria offers tax benefits – including the lowest tax rate in Europe – low business costs and risks, global banking facilities and a number of double tax treaties.
All of these aspects make the Bulgarian market hugely advantageous for establishing a subsidiary.
What are the main requirements for a Bulgarian Company?
– The minimum share capital required is €1
– The Memorandum & Articles of Association of the subsidiary
– The resolution of the parent company detailing its decision to form the subsidiary
– Appointment of a manager of the subsidiary
The documents shown above must be filed with the Central Commercial Register at the Registry Agency of the Ministry of Justice in order to register the subsidiary.
All required documents must be officially notarised, apostilled and legalised in Bulgaria.
What are the accounting requirements of a Bulgarian Company?
Bulgarian subsidiaries must comply with the double-entry accounting system, as stated in the Accountancy Act (ZS), which dictates the accounting requirements.
Subsidiaries, as with all traders in Bulgaria, are required to register for VAT if its annual turnover exceeds the threshold of 50,000 BGN (approx. €25,500). VAT returns should be filed monthly.
The accounts of the subsidiary, along with a statement of payments, should be submitted to the National Revenue Agency annually.
Please contact us in order to discuss your accounting requirements.
We will handle every aspect of the Company formation for you. Using our expert knowledge we can offer a company formation package in which we take care of company 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 companies. The benefits for establishing multiple companies include further increased exposure and global presence, and we can organise everything for you.
A summary of Bulgarian Corporate Taxes is available here.