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Registration and Formation of a Company in Bulgaria

Forming a company in Bulgaria involves several steps and considerations. Here’s a general guide to help you understand the process:

Types of Companies

In Bulgaria, the most common types of companies are:

1. Limited Liability Company (OOD):

- Requires at least one shareholder and one manager (who can be the same person). - Minimum share capital of 1 BGN (approximately 0.51 EUR).

2. Joint-Stock Company (AD):

- Requires at least one shareholder and a management board.
- Minimum share capital of 50,000 BGN (approximately 25,565 EUR).

Steps to Form a Company

1. Choose a Company Name:

- Must be unique and not already in use.
- Can be checked and reserved online through the Bulgarian Commercial Register.

2. Draft Articles of Association:

- This document outlines the company's activities, structure, and management.

3. Deposit the Share Capital:

- For an OOD, the minimum share capital is 1 BGN.
- For an AD, the minimum share capital is 50,000 BGN.
- The capital must be deposited in a Bulgarian bank account.

4. Notarize Documents:

- The articles of association and other relevant documents must be notarized.

5. Register the Company:

- Submit the documents to the Bulgarian Commercial Register.
- Pay the necessary fees.

6. Tax Registration:

- Register with the National Revenue Agency for tax purposes.

7. Register for Social Security:

- Register the company and employees for social security contributions.

8. Obtain Licenses and Permits (if necessary):

- Depending on your business activity, you may need specific licenses or permits.

Required Documents

- Articles of Association.
- Notarized specimen signatures of the directors.
- Bank statement showing the deposit of the share capital.
- Application form for registration.
- Declaration of the legal address of the company.

Costs

- Registration fee: Approximately 120 BGN (61 EUR).
- Notary fees: Varies.
- Accounting and legal fees: Depending on the complexity, can vary.

Timeline

- The process typically takes around 1-2 weeks, assuming all documents are in order.

Additional Considerations

- Corporate Taxation: Bulgaria has a flat corporate tax rate of 10%.
- Accounting Requirements: Companies must keep proper accounting records and file annual financial statements.
- Residency Requirement: At least one manager must be a resident of the European Economic Area (EEA), or Bulgaria.
- Virtual Office: A registered office address in Bulgaria is required.

Conclusion

Forming a company in Bulgaria involves several administrative steps, but it is generally straightforward and cost-effective compared to other European countries. It's advisable to consult with a local attorney or accountant to ensure compliance with all legal and tax requirements.