Company formation Bulgaria: fair fees, reputable experts
Company registration in Bulgaria is a widely popular way to initiate a brand-new business in EU. At first place, Bulgaria is a preferred jurisdiction due to the lowest corporate tax rate in the European Union which amounts to only ten percent. The favourable tax regime is also a reason for some well-established business to move to Bulgaria.
Another reason for gaining more and more popularity as a top corporate destination is the fact that a lot of foreign investors who already set up their businesses in Bulgaria compare Bulgaria to an offshore zone. From legal perspective Bulgaria is definitely not an offshore tax haven but practically the working environment is offering almost all generally known benefits of the offshore destinations around the globe. Needless to say, that makes the country most inviting to investors as they can benefit from having a practically offshore, but yet legitimate business in an EU member-state.
Bulgarian company formation process includes a limited number of legal actions. The registration is little time consuming and most cost-effective. The application for registration is filed with Bulgarian Companies Register (Companies House) – the only competent state regulatory body when speaking about business entities setup.
Company incorporation in Bulgaria is in all cases a comparatively quick procedure which starts with preparing a few important statutory documents. They need to be drafted in compliance with the applicable Bulgarian commercial legislation and signed by the owners / shareholders and by the representing bodies officially appointed by the respective commercial entity.
The list of documents varies depending on the type of trading company. The number of documents required for the Sole Trader (ET) registration procedure is smallest while the largest number is logically required for big Joint Stock Companies (AD or EAD) and corporations. Most popular format for doing business in Bulgaria is the limited liability company (in Bulgarian – OOD or EOOD). There are many reasons for that: The main reason of course is the limited financial responsibility of the shareholders or sole owner of capital (in case of an EOOD), the second reason is the minimum foundation initial capital required by law which is only 2 Bulgarian levs (1 euro). A Bulgarian limited company is also a preferred form of doing business activities, due to the easy maintenance from legal point of view. Summoning and convening of General meetings of shareholders, taking of various important company resolutions, making changes of company’s structure or management, increase of capital, etc. – all these routine corporate matters are organised faster and easier in a limited liability company than in a joint stock company. The procedures have been deliberately simplified by Bulgarian legislation with the aim to stimulate business.
The maintenance of the company in Bulgaria is also facilitated by the fact that more and more administrative actions can now be performed online by electronic signature. Thus the company management and accounting can manage company’s activities even from abroad and communicate to Bulgarian institution online through Bulgarian electronic government system.