Bulgaria is one of the fastest-growing economies in southeastern Europe. This is mainly attributed to the influx of offshore companies and a growing young skilled workforce. Opening a company in Bulgaria is relatively easy compared to other neighboring countries. Tax regulation for foreign companies is also favorable. That is why many foreign companies prefer opening their companies in Bulgaria. So, are you interested in opening a business in Bulgaria but wondering where to start? If yes, then you are in the right place. In this article, we will provide a step by step process on how to successfully open a company in Bulgaria.
- Choose a name for your company.
The first process of starting a company in Bulgaria is deciding on the company’s name. The name that you choose for your company is crucial. To increase the chances of making your company successful, it is recommended that you choose a name that is unique, related to your niche, and easy to remember. Once you have selected a name for your company, confirm with the Bulgarian registrar to know if the name is still available.
- Choose company structure
The legal structure that you choose for your company will impact your company’s registration, your personal liability, and how much tax you pay. Therefore, you need to make the right decision because there is a lot at stake. Most Bulgaria companies fall into the category of partnership, sole proprietorship, corporation, limited liability company, and S corporations. Each of these company structures has its own pros and cons regarding legal liability and tax. For instance, the sole proprietorship is easy to start, but raising capital can be quite tricky since the owner is solely responsible. On the other hand, a Limited Liability Company is quite challenging to establish but protects the owner from the business. Take your time to determine the company structure that is suitable for you.
- Register the company
Once you have picked the right name and business structure for your company, the next process is registering it. According to Bulgaria laws and regulations, all new companies must be registered by the official commercial register. Foreign investors must comply with all rules and regulations that have been put in place by the Bulgarian registry agency. The company owner must appoint an attorney and or a representative agent for the document proposal and registration process. Important things you need to have before your company is registered include:
- The certification of incorporation
- A few bank statement to provide detail of the company’s finances
- A certificate of good standing
- The decision to open the company
- Stamp registration
The Bulgarian law requires that all new companies get an official stamp, which will be used for endorsement of formal activities. This is a crucial step that must be conducted for the smooth operation of the business.
- Application for permits and licenses
You can only run a business in Bulgaria if it is all the necessary permits and licenses. Permits and licenses help your company to stay legally compliant. The type of permits and licenses usually varies depending on the business structure, location, industry, among other factors. You will be charged a certain amount for Permits and licenses.
- Open a bank account.
A bank account helps you keep track of your company finances and helps you handle the company’s tax obligation. Opening a bank account in Bulgaria is simple and straightforward. All you need is a valid passport and documents that indicate that the company is registered and legal. The entire process of opening an account will take you less than five minutes to complete.
In conclusion, if you plan to open a company in Bulgaria, you are making the right decision. Opening a business in Bulgaria is simple and straightforward. The federal government has put structures in place to make it easy for both local and foreign companies to operate. However, to make the entire process smooth, ensure that you work with professionals.
