Bulgaria is the latest EU-entrant, at the crossroads of Europe and Asia. The legislation in Bulgaria is designed to make it attractive to foreign investors and the income tax regime is amongst the lowest in Europe, with a 10% flat tax on all sources of income and favorable tax treaties with its European partners. Bulgaria has one of the lowest costs of labour and services in the EU, despite having a well-qualified workforce. Bulgaria had one of the fastest growing EU economies in the 'noughties' and is projected to return to growth in 2017.
What are the most common types of Bulgarian ?
- A limited liability company – either sole-owned (EOOD) or with multiple shareholders (OOD)
- A joint-stock company – either sole-owned (EAD) or with multiple shareholders (AD)
Main requirements of a EOOD / OOD
- The minimum share capital is only 2 Bulgarian leva (BGN), which is €1.
- There needs to be at least one director, who is allowed to represent the company in front of all authorities; there is no requirement for the director/s to be resident in Bulgaria.
- Monthly VAT returns should be filed if the turnover exceeds €25,000 or in case of voluntary VAT registration
- Non-resident companies can register a Bulgarian branch or a trade representation office in Bulgaria.
- You must be resident in Bulgaria to start a business as a sole proprietor.
The country has a skilled workforce, which is very much concentrated in the capital Sofia. Labour costs are low, as are national insurance contributions for both employers and employees. Bulgarian workers are noted for their IT skills and English is widely spoken.
Bulgaria guarantees the freedom to set up a company and transfer capital to all foreign companies and to any foreign investor who wishes to settle in the country, in order to start a commercial or industrial operation. No prior authorisation is needed except for certain highly-regulated businesses, such as banking, insurance and transport
Companies are required to file annual financial statements by the 30th of June the year following the accounting period but companies considered Small and Medium Sized Enterprises (SMEs) may produce simplified accounts. SMEs are also not obliged to appoint a statutory auditor. All companies must submit annual returns to the Commercial Register.
Please contact us and we will be pleased to discuss matters in greater detail.