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About Bulgaria |  Advantages Bulgaria |  Accounting and Audit |  Domicile Tax Residency
 


 

Advantages of Doing Business in Bulgaria



Additional details and considerations for forming a company in Bulgaria:

Shareholders and Directors

- Shareholders: Can be individuals or legal entities, Bulgarian or foreign.
- Directors: At least one manager (director) is required for an OOD, and a management board is required for an AD.
- Residency: For OODs, the manager does not need to be a Bulgarian resident. For ADs, at least half of the members of the management board must be EEA residents, including Bulgaria.

Annual Obligations

- Annual General Meeting: Required for ADs.
- Annual Financial Statements: Must be prepared and filed with the Bulgarian Commercial Register.
- Tax Returns: Corporate tax returns must be filed annually.

Virtual Office and Registered Address

- Registered Address: Required for official communications and must be in Bulgaria.
- Virtual Office: Services are available for non-resident companies to fulfill the registered address requirement.

Business Environment

- Labor Market: Bulgaria offers a skilled labor force at competitive rates.
- Infrastructure: Modern infrastructure and telecommunications services are available.
- EU Membership: Bulgaria is a member of the European Union, facilitating trade and investment.

Advantages of Doing Business in Bulgaria

- Low Taxes: Flat corporate tax rate of 10%.
- EU Membership: Access to the EU single market.
- Cost-effective: Lower operational costs compared to Western Europe.
- Strategic Location: Located at the crossroads of Europe, Asia, and the Middle East.

Disadvantages and Challenges

- Bureaucracy: Administrative processes can be cumbersome.
- Language: Bulgarian is the official language, but English is widely spoken in business circles.
- Legal and Regulatory Changes: Keeping up with changes in regulations can be challenging.

Additional Services and Support

- Legal and Accounting Services: Available to help with compliance and business setup.
- Investment Incentives: Some sectors may offer incentives for foreign investment.
- Banking: Bulgaria has a stable banking sector with both local and international banks operating.

Exit Strategies

- Liquidation: A company can be dissolved through voluntary liquidation.
- Transfer of Shares: Shares can be transferred to new owners.

Summary

Forming a company in Bulgaria offers several advantages, particularly for entrepreneurs looking to establish a presence in the European Union. With a favorable tax regime, skilled labor force, and strategic location, Bulgaria provides opportunities for various types of businesses. It's essential to work with local professionals to navigate the legal and regulatory requirements effectively.
 
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