ZaraConsult

Choose your best option for Bulgarian Entity

Overhead view of a document being signed with a fountain pen at a white table, a printed bar chart alongside

Establishing a Bulgarian company benefits you with the lowest taxation (10% corporate tax) and the Lowest Labour and Social Security Contribution within EU, fast and easy procedures, secure bank system.

MOST POPULAR FORMS OF BUSINESS ASSOCIATIONS IN BULGARIA ARE:

  • Limited Liability Company (Ltd)
  • Branch
  • Representative office
  • Joint Stock Company (JSCo)
A man in a dark suit stands reading a sheet of paper in front of a bright window wall

LIMITED LIABILITY COMPANY (LTD)

Diagram of the Bulgarian LTD: minimum capital 1 euro, 10% tax on foreign income, formation in 102 working days, at least one director and one shareholder, VAT registration up to 10 days, and no nationality restrictions on directors or shareholders

Limited Liability Bulgarian company can be incorporated by at least 1 director (individual) and at least 1 shareholder (individual or a company).

There are no limits of the number of Directors and Shareholders or restrictions to foreign ownership.

Bank account opening requires personal presence of the Manager after the company formation.

VAT registration takes from 7 to 10 business days after the company set up.

By establishing your Bulgarian company, in your capacity of Director, you may benefit even from low personal income tax (10%) by becoming tax resident of Bulgaria after the company formation. Thus, each one foreigner can get the advantage of paying only 10% personal income tax of his worldwide income after getting his Bulgarian ID residential card.

BRANCH

Diagram of the branch: no capital requirement, registration in 3 to 4 working days, no restriction on the parent company's jurisdiction, at least one representative, and only a few parent-company documents required

Bulgaria is favorable for the establishment of branches and recently it becomes very popular choice.

Similar to the Limited Liability company, branches can take advantage of the lowest tax system in the EU, low business costs and easy & fast procedures for incorporation.

There are no capital requirements.

Branch actually means legal registration of a foreign company in Bulgaria.

The branches require one representative. It could be the Managing director of the Parent company or a local individual.

Two raised forearms in suit sleeves meeting in a high-five against a glass office tower
Two men in suits talking in front of a bright window

REPRESENTATIVE OFFICE

Diagram of the representative office: no capital requirement, only a few documents from the foreign company, at least one representative, and an easy route to a long-term residence permit

Main advantage of the representative office registered in Bulgaria is the easy procedure of getting Long-term residence permit for EU and Non-EU individuals.

Once this procedure of incorporation is completed, they may apply for residence permit for 1 year, which could be prolonged.

JOINT STOCK COMPANY

Diagram of the joint stock company: minimum capital 25,000 euros with at least 25% paid up, no nationality restriction on board members or shareholders, and at least three board members and one shareholder

A joint stock company can be incorporated by one or more individuals or legal entities.

The minimum registered capital of a joint-stock company is BGN 50,000 (approximately € 25,500) and it is divided into shares.

Аt least 25% of the capital can be subscribed in order to initiate a registration procedure.

Two men at a glass table, one reading a printed chart, the other working at a laptop showing a world map
A man in a dark suit stands reading a tablet in a glass-partitioned office

Back to Publications

Bureau Veritas certification mark for ISO 9001 and ISO/IEC 27001

Our information security management system is certified in accordance with the requirements of ISO/IEC 27001 by Bureau Veritas.

Certificate CZE-2600205·English·Български

Call now Talk to an Expert