Company Formation in Bulgaria
Bulgaria, officially the Republic of Bulgaria, is a country in southeastern Europe, bordered by Romania to the north, Serbia and Macedonia to the west, Greece and Turkey to the south, and the Black Sea to the east. The capital and largest city is Sofia and other major cities are Plovdiv, Varna and Burgas. With a territory of 110,994 square kilometers (42,855 sq. mi), Bulgaria is Europe’s 16th-largest country.
Member of NATO, the Council of Europe and the European Union since 2007, Bulgaria has a strategic location, allowing investors to access the entire EU and the markets of central and Eastern Europe, having a predictable and stable economy and government.
Bulgaria has one of the most liberal tax regimes in Europe. The corporate income tax is 10%, making it the lowest in the EU and the tax on dividends is only 5%. Individuals owe only 10% tax on their earnings. Bulgaria has signed agreements for the avoidance of double taxation (AADT) with more than 70 countries.
Bulgaria Limited Liability Companies are not considered as offshore companies as there is no offshore legislation in Bulgaria.
A Bulgaria Private Limited Company (OOD) resembles a British limited liability company. Foreigners receive limited liability and can own all of the shares in an OOD. Single shareholder companies are also available which are called ‘EOOD” companies in Bulgaria. In an EOOD company, the sole shareholder can also be the only director of the company who can also be foreigners.
Advantages of company incorporation in Bugaria:
Summary of Bulgaria Limited Company and main characteristics:
| General Information | |
|---|---|
| Type of company | Limited Liability Company (Eood/ood) |
| Corporate Legislation | Article 63 ff. of the Bulgarian Commercial Act |
| Taxation | Standard Corporation Tax – 10% Tax on Dividends – 5% Standard VAT rate – 20% |
| Currency | Standard Currency BGN |
| Paid up capital requirement | Paid up capital required only 1 EUR |
| Time zone | GMT (UTC) +2 |
| Directors | |
| Minimum no. required | 1 |
| Local Director required | No |
| Location of Meetings | Anywhere |
| Shareholders | |
| Minimum no. required | 1 |
| Location of Meetings | Anywhere |
| Company Secretary | |
| Required | Optional (can provided by Consil Formation) |
| Local Secretary required | No |
| Registered office required | Yes, local |
| Share Capital | |
| Standard Currency | BGN |
| Standard Authorized Capital | BGN 2 |
| Minimum paid up capital | BGN 2 (1 EUR) |
| Accounting Requirements | |
| Preparation of accounts | Required (can be completed by Consil Formation) |
| Requirement for audit | No for Small or Medium Sized Enterprises (SME) |
| Accounts public accessible | Yes |
| Requirement to file Annual Return | Yes (can be completed by Consil Formation) |
| Further Information | |
| Bearer shares | No |
| Confidentiality | Yes |
| Nominee services | Available |
| Need to travel | No |
| Apostille | Yes, Hague Convention 1961 |
| Owners | Individuals or Corporate |
Register your Bulgaria Limited Company
- Document Notarization per document:
- Bundle of documents Notarization;
- Document Apostillation per document;
- Bundle of documents Apostillation.