Company formation in Bulgaria

Corporate services in Bulgaria

• The Bulgarian corporate bank account
• The minimum share capital available for transfer
• At least one shareholder
• At least one managing director, who can be also the shareholder (a foreign citizen not resident in Bulgaria)
• A registered office in Bulgaria with a view to achieving tax resident status

A current account can be opened remotely, with a power of attorney to be signed and notarized for all needed documents. At the same time, the company should have substantial presence in Bulgaria. Please contact our team for personalized advice and solutions.

To establish an entity in Bulgaria, the following are some of the major steps to be followed:

1. Compliant name check, reservation of company name, and fee payment to the state
2. Prepare the documents required, including certified translation, notarization, and apostillization services.
3. Registration fee to the Commercial Register.
4. Registration as a VAT payer is obligatory when the turnover of a company exceeds 50,000 BGN (approximately 25,600 EUR) during a period of 12 consecutive months.
5. Articles of Association
6. Opening of a corporate account for the company

Compliance with tax regulations, social security contributions, and adherence to labour laws are essential for a smooth business setup.

Understanding Bulgaria’s tax system, which includes corporate income tax, value-added tax (VAT), and personal income tax, is crucial for businesses. Leveraging tax incentives, maintaining accurate financial records, and complying with accounting standards are vital aspects that necessitate the involvement of proficient accountants or tax advisors.

Opening a business in Bulgaria is associated with a number of advantages due to the fact that this country becomes increasingly attractive for entrepreneurs in search of a favorable business climate. One of the most relevant reasons explaining why businessmen like Bulgaria refers to its advantageous geographical location. Being situated at the crossroads between Europe and the Middle East, Bulgaria opens access to an enormous market at least. Membership within the European Union strengthens economic stability where entrepreneurship benefits by being in the single market within the Union, as it enjoys free movement of goods and services.

What types of companies does Bulgaria have?

Like most countries, Bulgaria has different legal forms of doing business. Each of these has its particular characteristics, advantages, and restrictions. The best form of a company really depends on several factors such as the size of the business, the amount of investment planned, the goals of the owners, and the degree of personal responsibility preferred. In the article below, we briefly discuss the main forms of companies available in Bulgaria and shortly describe the principal characteristics of each. The following are the main corporate forms, which can be established under Bulgarian law:

Individual entrepreneur (ET – “Ednolichen trgovets”)

A sole proprietor is the easiest and most available form of doing business. It is intended for one owner and doesn’t need to be registered as the authorized capital. The main disadvantage of this form is unlimited personal responsibility for debts and obligations of the business.

Partnership (SD – “Sbiratelno druzhestvo”)

A partnership would mean that there are two or more founders who carry on business under a common name and have unlimited joint liability for the obligations of the company. This type is appropriate for small family businesses or partnerships where high trust among the partners is essential.

Limited partnership (KD – “Komanditno druzhestvo”)

In this type of partnership, one limited partner is an investor, whose liability is limited to the size of its investments, while another kind of limited partner is the one who manages the enterprise and has unlimited liability. This form of company would be good for projects in which it is necessary to attract from outside the funds, but at the same time, you want to retain management control.

Limited Liability Company (OOD – “Oodruzhestvo s limitaena razgovornost”)

OOD is the most popular type of legal entity in Bulgaria. It offers limited liability of the founders, only to the amount of their invested contribution, and one or more persons may establish it. The authorized capital of the OOD is divided into shares, what makes this company type extremely suitable for small and medium-sized enterprises.

Joint-Stock Company (hereinafter referred to as “Joint-Stock Druzhestvo”)

The analog of a large enterprise with a huge number of investors is a joint-stock company. It requires minimum statutory capital and has the right to issue shares that can be traded on an exchange freely. AD provides limited liability for shareholders, which is attractive for large investment projects.

Cooperative

Cooperatives are most often created for the purpose of collaboration in agriculture, production, or service delivery. They may be organized by a group of persons or legal entities that have combined resources to accomplish some common economic objective. Special legislation governs cooperatives.

The factors forming the basis of such a decision in Bulgaria are the size and objectives of the business, the amount of responsibility preferred, and whether an investment is called for. Each form of legal entity has its own peculiarities and requirements, so all possible options should be weighed with great caution, and if necessary, even with the help of legal experts, to choose the most appropriate form for your business in Bulgaria.

Table oftax rates for Bulgarian companies for 2024

What is the size of the authorized capital in Bulgaria?

The size of the authorized capital is one of the most important moments of the company registration in Bulgaria, influencing the possibility to choose one or another form of a legal body and also the circle of obligations and business opportunities. The authorized capital is the total amount of money or property invested by the founders/shareholders in the company at the time of its formation. It expresses the secured interest of the creditors and shows the lowest financial limit that every company must observe. In Bulgaria, the amount of the authorized capital is determined based on the type of company’s legal form.

Limited Liability Company

• Minimum statutory capital: 2 leva (approx. 1 euro).
• OOD is the most popular form of business in Bulgaria because of the big flexibility and limited liability of founders, which does not exceed the size of their investments in the authorized capital.

Joint-Stock Company (AD)

• Minimum statutory capital: BGN 50,000 for closed joint-stock companies – CJSC – and BGN 100,000 for open joint-stock companies – JSC – approx. EUR 25,000 and EUR 50,000, respectively.
• AD is suitable for large businesses that are able to attract investment by means of issuing shares.

Limited Partnership (CD) and Partnership (SD)

• For these types of businesses, the legislation of Bulgaria does not set requirements for the minimum size of the authorized capital.
• The founders are personally liable for the company’s obligations, which are unlimited for the partners in the partnership, and limited to the size of their contribution for the limited partners in the limited partnership.

Co-op

• Minimum authorized capital: Determined by the founders and can be changed in accordance with the cooperative’s charter.
• Cooperatives are usually created for joint activities in the agricultural sector, production or service provision, where the founders make equal contributions.

Importance of share capital

On the other hand, the authorized capital is important not only as a financial basis of the company at the moment of its foundation but also as an indicator for creditors and partners, reflecting the financial stability and seriousness of the founders’ intentions. Besides obeying minimum requirements for authorized capital, a company has to take care of needs emerging in connection with future operations and possible risks to provide a sufficient level of capitalization.

The size of the authorized capital in Bulgaria depends on the form of the legal entity of the company and ranges from symbolic to serious investments for joint-stock companies. The optimal size of the authorized capital can be determined only by a thorough analysis of the goals of the business, its needs in financing, as well as planned activities. Anyway, the authorized capital is a ground upon which one opens and extends an enterprise; it is also an important factor of business stability and gaining trust from partners and investors.

Should a company in Bulgaria have a local director?

Under Bulgarian law, there is no strict requirement as to residency concerning the director or manager of a company. This automatically means that foreign citizens may hold the position of director of a Bulgarian company without necessarily staying in Bulgaria. However, there are one or two things to look at:

1. Registration and taxation: The presence of the foreign director does not affect the company’s obligations vis-а-vis the tax authorities in Bulgaria. It is obliged to fulfill all requirements provided by local law: corporate tax, VAT, and other fees.
2. Company representation: While the status of director does not imply a local residency requirement, it is sometimes practical to have a person who can represent the interests of the company in Bulgaria for the purposes of carrying out administrative procedures, communicating with governmental authorities, and participating in legally significant events.
3. Banking: Special documentation may be required on behalf of the foreign director to open and maintain bank accounts with Bulgarian banks, such as proof of residency or the handing over of a special power of attorney.

Although there are no legal restrictions on the appointment of foreigners as directors, there may well be practical problems in managing a company from some distance. Sometimes it will be suitable to appoint an additional local director or representative who could take immediate action for the solution of current issues, communicate with local authorities on the site, and make sure that all formalities are fulfilled.

According to Bulgarian legislation, a company director need not be a resident of the country; therefore, the second option may also provide services in that position, provided he complies with all the tax and administrative obligations of the company. It is, however, worth considering the practical aspects of managing a business and the potential advantages of having a local representative for effective liaising with state institutions and banks. Sometimes, it may be advisable for the business to be conducted by a local manager or director in order to avoid unnecessary administrative obstacles.

What are the state fees connected with establishing a company in Bulgaria?

All these state fees represent the administrative costs related to the registration of a company in Bulgaria. Depending on the type of legal entity chosen by the client, whether the registration will be electronic or using paper documents, sometimes even extra services, these fees might be different. Below is included a general overview of major state fees applicable to the incorporation of a company in Bulgaria, as of my last update.

Relatively modest state fees for enterprise establishment in Bulgaria are due, first of all, to the usage of the electronic registration form. At the same time, potential entrepreneurs have to take into consideration other probable expenses, namely notary fees and legal consultants’ charges. It is always recommended that you call for updated information regarding the cost of fees and documentation requirement well in advance prior to commencing the registration process, for an effective and successful setup of your company in Bulgaria.

What is the annual cost of servicing a company in Bulgaria?

Actually, it is considered that the annual cost of servicing a company in Bulgaria is a very important financial aspect in every company’s plan, which plans to operate business here. Basically, such costs will involve government duties and taxes, other obligatory payments, as well as accounting, legal and administrative costs. Below, we will provide a general overview of the main components of annual maintenance costs in Bulgaria to give entrepreneurs an idea of what financial obligations they may face.

Taxes and state duties

1. Corporate tax: Bulgaria has one of the lowest corporate tax rates in the European Union — 10%. This is the tax levied against the profit made by the company.
2. Dividend tax: Dividends are taxed at the rate of 5%. It is a kind of tax, which the Bulgarian company pays to the shareholders on account of dividend.
3. State Fee: There is a requirement for annual financial statements to be filed with the Commercial Register, together with payment of a state fee, determined according to the company’s size and the type of documents filed, but it usually does not exceed several hundred BGN.

Accounting and auditing services

1. Accounting: Accounting services are based on the volume of operations, company size, and particularities of the business. On average, for small companies, expenses are from BGN 200 to 500 per month, respectively from 100 to 250 euros.
2. Audit: If the company is obliged to be audited pursuant to the Bulgarian legislation the price of audit services may vary a lot depending on the size of the company and the complexity of its financial activity. The price can start from several thousand leva.

Legal services

Legal expenses are very different, depending on the company’s needs. The standard legal services include consultations on labor law, contractual relations, and corporate governance. The price of legal services starts from several hundred leva per month.

Administrative expenses

1. Office rental: The renting price is different according to the location and quality of the office. Prices are higher in Sofia and other major cities.
2. Utilities and Internet: They also vary depending on the size of the office and the intensity of use, but they are required for the office to operate.
3. Employee expenses: Salaries, social security, and health insurance. In Bulgaria, social contributions take a significant share of staff costs.

The annual cost of servicing a company in Bulgaria depends on many factors, such as the size and type of activity of the company, the level of services required, etc. Taking all possible costs into consideration when planning a business in Bulgaria will contribute to its sustainable and efficient operation. For more detailed consultation, addressing professional consultants will help to make a better estimate.

What are the primary advantages of company registration in Bulgaria?

Establishment of a company in Bulgaria is a very attractive opportunity for entrepreneurs and investors due to many reasons. The country, which has been a European Union member since 2007, offers stable economic conditions, favorable tax legislation, and access to European markets. Further, it would be interesting within the article to consider in detail the main advantages of establishing a company in Bulgaria.

The company formation in Bulgaria will bring a lot of benefits for the investor, mainly represented by beneficial tax legislation, strategic geographical location, access to the European market, skilled and cost-effective labor, together with stable economic and political environment. These are the reasons that make Bulgaria one of the most wanted countries regarding doing business in Europe.

What are the ways of establishing a company in Bulgaria?

Establishment of a company in Bulgaria attracts many foreign investors by its favorable tax treatment, strategic location, and access to European Union markets. There exist various legal forms for company establishment in Bulgaria; each of them has its specific features, requirements, and advantages. This article will look in detail at the main ways of establishment of a company in Bulgaria.

Limited Liability Company

A limited liability company is the most popular form of business among small and medium-sized enterprises in Bulgaria. This form implies that the liability of the founders is limited to the size of their contribution to the authorized capital of the company. The minimum statutory capital for a public organization is BGN 2 (about 1 euro), which makes this method especially attractive for small businesses.

Joint-Stock Company (AD)

A joint-stock company would be fitting, also known as AD, for large-scale businesses since there is a possibility of many shareholders being part of this type of business institution. In this form of company establishment, the liability of shareholders is limited to their share of the Company’s share capital. The minimum authorized capital for a joint-stock company is BGN 50,000 (approximately EUR 25,000). AD allows you to issue stocks and bonds, which is helpful in attracting investment.

Limited Company (CD)

A limited company in Bulgaria is a partnership where one or more of the founders, called complementors, bear unlimited liability and the rest of the founders are limited partners with limited liability. Such a company structure is very often used for family businesses or small firms where management responsibility and liability need to be distinguished.

Representative office or branch of a foreign company

By opening a representative office or branch, foreign companies can extend their activities to the Bulgarian market. The representative office is not a legal entity and shall not perform commercial activity. Its main function is marketing-promotional. A branch office, on the other hand, is an extension of a foreign company and might conduct business in Bulgaria, with the financial responsibility of the parent company.

A sole entrepreneur (s)

Sole proprietorship or sole proprietorship is a form of doing business, which is suitable for a single person who wants to work for themselves. This is the easiest and least costly form of doing business in Bulgaria, but the entrepreneur bears unlimited responsibility for his personal property.

Company registration process in Bulgaria

It covers the filing of documents with the Commercial Register of Bulgaria, the payment of the state fee, and the publication of the constituent documents. Besides, specific types of businesses can be subject to special licenses or permits. Registration can take, on average, from several days to weeks.

The choice of a legal form for company establishment in Bulgaria depends on many factors, concerning the size and type of business, the number of founders, and some financial and legal considerations. Thanks to its flexible legislation and favorable tax regime, Bulgaria is an attractive jurisdiction for doing business in the European market.

Do I need to have a legal address in Bulgaria?

The legal address in Bulgaria plays a significant role, not only in the very process of company registration but also in the subsequent operational activity. Clearly understanding the requirements for a legal address will help entrepreneurs avoid possible legal difficulties and ensure correspondence of their actions with Bulgarian legislation. In this article, we will look closer at why you need a legal address in Bulgaria and what features its use has.

Why do I need a legal address?

How to Get a Legal Address in Bulgaria?

In this respect, it is allowed to use the real office address in Bulgaria and services of a legal address provision from specialized services. It is especially relevant for foreign entrepreneurs who still don’t have physical presence in the country, yet who want to register a company in Bulgaria. In this respect, the company that provides virtual office services can provide a legal address for the registration and further use in business correspondence.

A legal address in Bulgaria is a mandatory attribute of the establishment and further functioning of an enterprise in the country. It plays an important role in company registration, tax accounting, receiving legal correspondence, and maintaining the trust of the business community. Only proper selection of the legal address and proper use can be the guarantee for the enterprise to be in concordance with the law and to successfully conduct business in Bulgaria.

Can I open a branch of a foreign company in Bulgaria?

We have prepared this overview to help you decide whether opening a branch in Bulgaria of your foreign company is the right step towards developing your business and becoming part of the European Union market: Bulgarian tax, geographical, and political environment is attractive to any foreign company that aims at strengthening its presence on the European continent. In the article, we’ll view in depth how one should open the branch of a foreign company in Bulgaria, what’s significant, and the benefits that such action gives.

Opening procedure of a branch in Bulgaria

Opening a branch of a foreign company in Bulgaria shall be initiated with the submission of several documents to the Bulgarian Trade Register. The following steps shall be included within the process:

Benefits of opening a branch in Bulgaria:

• Access to the European market: Opening a representative office in Bulgaria gives foreign companies easier access to the European Union market and allows them to use Bulgaria as a strategic base from which to further expand operations in Europe.
• Tax benefits: Bulgaria is one of the countries with the lowest tax rate in the EU concerning corporate income, thus making Bulgaria very attractive to foreign investments.
• Skilled and cost-effective labor: Companies can take advantage of a skilled and relatively inexpensive workforce to manage their operations.
• Stable economy and political system: Bulgaria offers a stable economic and political environment, which reduces risks for foreign investors.

Opening a branch of a foreign company in Bulgaria is one of the best strategies through which to expand your business and reach the European market. Due to a favorable tax climate, highly qualified labor, and access to the EU market, Bulgaria offers so many advantages for international companies. So, careful preparation of registration, following all requirements of Bulgarian legislation, shall be done for successful and efficient establishment of a branch.

Is there an opportunity to open companies in Bulgaria by foreigners?

Foreign entrepreneurs making a business expansion plan in Europe often consider Bulgaria an attractive jurisdiction for the opening of a company. The strategic location, favorable tax treatment, relatively low operating costs, and access to the European Union single Market are good advantages for foreign investors. The article below will touch on the essentials connected with opening a company in Bulgaria by foreign citizens: the forms of companies, the procedure of incorporation, and the main requirements of such an action.

Possibility of opening a company by foreigners in Bulgaria

Foreigners have the right to open their own company or take over an already existing one in Bulgaria on equal conditions with Bulgarians. Such right is provided for by the Bulgarian legislation and by the policy of the country aimed at stirring up foreign investment. Foreign businessmen are allowed to choose any type of legal companies fit for the nature of their business, the scope of coverage of their activities, and the type of management.

Types of companies for foreigners

The main legal forms accessible for foreign investors in Bulgaria are:

• Limited Liability Company: Even the smallest and medium-sized business can undertake this form, but the minimum authorized capital required is BGN 2 (approximately 1 euro). The liability of the founders is limited by their contribution to the capital of the company.
• Joint-Stock Company (AD): Better fitted for a big business, the minimum authorized capital is BGN 50,000 (about EUR 25,500), and shares can be offered publicly.
• Limited company and general partnership: Less used forms suitable for a certain type of business partnership.

Company registration process

Registration of a company by foreigners in Bulgaria involves the following steps:

1. Select a name for the company and check its uniqueness.
2. Preparation and signing of constituent documents, including the charter and the foundation agreement, which must be notarized.
3. Payment of the authorized capital.
4. Registration of the company in the Commercial Register and obtaining a taxpayer identification number.
5. Opening a bank account.
6. Obtaining the necessary licenses and permits, if this is required for a specific type of activity.

Basic requirements and recommendations

• To have a legal address in Bulgaria: For registration, you should have a registered office in the country where your company will be registered.
• To follow the requirements concerning taxation and accounting: The companies should keep records and present financial statements according to Bulgarian legislation.
• To obtain special licenses: For some types of activity, special licenses or permits are needed.

Advantages of opening a company in Bulgaria for foreigners

• Supportive fiscal environment: One of the lowest income tax rates in the EU, namely 10%.
• Gate to the European market: Allowed trading and investment within the EU.
• A qualified yet inexpensive labor force.
• Stable economic and political environment.

Consequently, it offers foreign investors easy and favorable conditions in the establishment and operation of business activities. Compliance with the country’s procedural requirements and legislation will ensure the successful implementation of the business project and, hence, long-term development within the European market.

Can I obtain a residence permit when establishing a company in Bulgaria?

One of the possibilities of obtaining a residence permit in this country is considered to be establishment of a company in Bulgaria by foreign citizens. The country has become a member of the European Union; therefore, it can boast some very good business conditions: low taxes and the European single Market. Below, we will see how the process of opening a company in Bulgaria can be connected to the residence permit issue, illustrating the basic requirements, the procedures, and the possible benefits.

Residence permit through the establishment of a company

Establishment of a company in Bulgaria can be used by foreign citizens as one of the ways of applying for a residence permit. However, one should take into account that the establishment of a company as such does not provide automatic grounds for obtaining a residence permit. Applicants have to meet a number of conditions and requirements laid down by Bulgarian law.

Basic requirements and conditions

The process of applying for a residence permit

1. Registration of a company: It is necessary to have a company successfully founded and registered under the local legislation in Bulgaria.
2. Application of documents: The candidate files a package of documents with the Migration Service of Bulgaria, including those that prove investment, job creation, and financial sustainability.
3. Waiting for decision: After filing all the necessary documents, the candidate has to wait for the decision of the competent authorities. Eventually, the period for processing applications might differ.
4. Obtaining residence permit: With a positive decision, the candidate obtains the residence permit, which usually is given for one year and can be further renewed after that.

Advantages of residence permit in Bulgaria

• EU Market access: To have residence permit guarantees traveling and carrying out business freely within the European Union.
• Standard of living: High standard of living, temperate climate, and inexpensive living costs.
• Tax benefits: Flexible taxation rules for foreigners investing and doing business in Bulgaria.

Obtaining a residence in Bulgaria through incorporation of a company seems to be a feasible opportunity for foreign investors. It is recommended that one should research all the requirements in detail, basing the company on all the established requirements, so as to ensure obtaining resident status.

 What is written in the charter of a company registered in Bulgaria?

It is stated in the Articles of Association of a company incorporated in Bulgaria that the structure, objectives, and rules of operation and management would be drawn up. The formation and mode of operation of an organization, together with the basic policies about its management and business, are stated in this document, which provides a legal basis for all operations of the company. The Charter should be drafted in compliance with Bulgarian law and include several imperative provisions so that it could acquire legal power. The main components which have to be pointed out in the charter of a company, established in Bulgaria, we are going to examine in the present article.

The Charter is a basic document for any organization incorporated in Bulgaria, providing details about its form, organization, rights, and responsibilities of participants. While working on the Charter, attention should be paid to observing all recommendations of Bulgarian Law with the aim of avoiding potential legal problems in the future. Well-thought-out articles of association might serve as a good legal basis for successful and sustainable development of the enterprise.

How long does it take to establish a company in Bulgaria?

Setting up a business in Bulgaria is a process that attracts foreign investors due to the relative simplicity and transparency of the procedures. The time needed for preparing and completing all formalities to establish a company can vary regarding the type of company, availability of documents, and the efficiency of the interaction with the Bulgarian government institutions. In this article, we will talk about the principal stages of the process of establishment of the company in Bulgaria and give an estimation of the time needed to perform them.

Stages of establishment of the company in Bulgaria

Preparation of documents

The first stage is the preparation of all the necessary documents, which includes the so-called foundation agreement and the charter of the company. More specifically, foreign investors will have to translate documents into Bulgarian and further notarize them. The time needed at this stage may vary but normally it takes from several days up to 2 weeks.

Registration in the Commercial Register

After all the documents are prepared and certified, the next step will be their presentation for registration in the Commercial Register. The process of registration takes usually 1 to 3 business days from the very moment of submitting the application. It is appropriate to note that terms can vary in dependence on a workload of a registration authority.

Opening a bank account

This also includes the opening of a bank account in which the authorized capital should be deposited to start a company in Bulgaria. The time required for opening the account may be a few hours or days depending upon the availability of all the required documents and the policy of the bank.

Getting the licenses and permissions

Furthermore, special licenses or permits may be required, depending on the field of operation or activity. For example, this can be anywhere from a few weeks to several months, depending on the requirements.

Overall time estimate

On average, the process of company registration in Bulgaria, from the very start of preparing documents to the end of state registration, may take from 1 to 4 weeks provided that all documents are prepared right and no special licenses or permissions are needed. However, if an activity of the company belongs to the category requiring a license or any other type of special permit, such terms can be extended.

Important considerations

• Effective preparation. Delays often occur due to incompletely or incorrectly prepared document packages. We recommend using the services of legal consultants so that the documentation is right and complete.
• Interaction with banks. You should pay attention to the bank’s experience in working with foreign clients and the speed of applications processing when you choose a bank to open the account.
• Business-based planning: The nature of the business may require more time to procure all licenses and hence needs apt planning.

Generally speaking, it is not too lengthy and complex to set up a company in Bulgaria, compared to countries that are equally part of the EU. Proper preparation and knowledge of the overall requirement can quicken the process by allowing foreign investors to begin their business ventures in Bulgaria as quickly as possible because unnecessary delays can be avoided.

What can companies do in Bulgaria?

The companies registered in Bulgaria may operate in a wide range of activities that reflect the diversity of the country’s economic landscape and its integration into the European Union. Thanks to the favorable tax system, strategic location, and qualified labor, Bulgaria offers attractive conditions for the development of both traditional and innovative business sectors. In this article, we will look at the key activities that companies can engage in in Bulgaria, exploring their potential and market features.

The companies in Bulgaria have great opportunities to conduct business activities in almost all sectors of the economy. From tourism and IT to agriculture, energy, and manufacturing, the country has created favorable conditions both for local and foreign entrepreneurs. Careful study of market trends is to be performed, as well as the legal environment, to choose the best strategy of business development. The attractive tax policy and desire to strengthen the leading positions of Bulgaria in the European economic area turn it into a very attractive country for investment and business development.

Should a Company in Bulgaria have employees?

The question of the need to have employees for a company registered in Bulgaria is both a legal requirement and one involving strategic business planning. Bulgarian legislation determines the general framework for pursuing an activity, but the particular demands of the number may vary according to the type of activity and also the legal form of the company. In this case, let’s examine this question in detail, considering different aspects of managing the company in Bulgaria.

Legal aspects

Bulgarian legislation does not set a general compulsory norm for full-time employees for all types of companies. That is to say, from the legal point of view, a company may be registered and operate without staff being hired, unless this is in contradiction to other specific requirements on its activities.

However, for particular activities where qualification and staffing requirements are to be met, licensing or certification may be required. For example, the relevant regulations may make the staff requirement for education, medicine, construction, and transportation strongly regulated.

Strategic planning and management

From a strategic planning perspective, the presence or absence of the employee impacts on the efficiency of an operation or scalability and growth of the company. The business need for specialized resources and skills to meet the goals of the company must be identified.

Companies dealing with extensive research, production, or service provision are obliged to involve qualified professionals in order to develop and work productively. At the same time, a lot of modern business models, based on information technologies or remote services, may work with a minimum number of employees, and can even be fully automated.

Outsourcing and freelancing

Outsourcing or freelancing services can be a good complement to, or even an alternative with, full-time employees. In this way, the company remains flexible, with lower operating costs, while having access to a wide range of specialized skills when needed. In the case of this model, attention should be given to some aspects related to quality control and information confidentiality.

As a rule, whether to have staff in a company registered in Bulgaria depends on the specifics of the business, its goals, and development strategy. The same is required from companies in terms of compliance with all legal demands relevant for them, along with assessing their needs to select the best model of HR management. Anyway, resource management approaches might provide flexibility and the usage of modern business practices for successful conduct and development of business in Bulgaria.

How do I choose a company name in Bulgaria?

One of the most important measures regarding company setup is its naming, especially when a country has such cultural and historical values as Bulgaria does. A well-chosen name will help the enterprise stand out from the crowd, and this must be considered part of the branding process, where it must also ensure customers will be attracted. Finding the right name can be the simplest and most important thing to happen to a firm in Bulgaria, as it is in so many other countries. In this article, we look at some key aspects and provide some advice on how to choose a good name for your company in Bulgaria.

Get acquainted with the legal requirements

Before naming, first, get acquainted with the legal requirements and restrictions under Bulgarian law. The firm’s name in Bulgaria shall not mislead about the character of its activities and should not be identically or too similarly named to companies already registered within the country. There are also certain restrictions on the use of specific words and phrases that may fall under special permission.

Conformity to the field of activity

The name should correspond to the essence and specialization of your enterprise in such a way that it will be recognizable for the target audience. It should be clear and memorable so that customers will easily connect your brand with products or services offered.

Uniqueness Plus Checking Its Availability

Before finally choosing a name, you have to take into consideration whether the name is unique. In Bulgaria, with online services, it’s possible to check names in the Commercial Register. This will avoid conflicts with already-registered trademarks and company names.

Easy to Spell and to Remember

Use a name which is easy to pronounce, spell, and remember. This is particularly important for international businesses, as your name will not only be used in the Bulgarian market. Avoid complex phrases and abbreviations that may not be so obvious to the general audience.

Cultural Adaptation

Keep in mind the cultural and linguistic particularities of Bulgaria, how the name will work for and be perceived by the local audience. Never use words that may have a negative meaning or be misinterpreted.

Visual component

Consider how the name will look in branding materials: a logo, website, and ad designs. A good name fits easily into various formats and design styles, thus enhancing brand recognition.

The selection of a company name in Bulgaria is not only part of adhering to the legal requirements; it forms part of an important element in the branding strategy. The name should be unique, reflecting the scope of the company’s business, easy to remember, and adaptable to the cultural context. Such a process deserves due attention and thoroughness since selecting the right name will initiate your successful future in Bulgaria.

Business Register in Bulgaria

The Business Register is the so-called ‘single point’ of publicity under Bulgarian law, ensuring respectively the publicity and the accessibility of information about legal entities and individual entrepreneurs registered in the country. This centralized electronic register is maintained by the Registration Agency, subordinated to the Bulgarian Ministry of Justice, and it plays a relevant role in regulating commercial activities and building trust within the business community for the protection of consumers’ interests.

Purposes and operations of the Business Register

The goal of the Business Register in Bulgaria is to receive, store, and provide current, correct information about the companies: legal status, basic managerial data, authorized capital, subject of activity, history of a case. The file is a source of vital significance for government institutions, financial institutions, business partners, and investors aiming at ensuring transparency of the business climate, facilitating fraud limitation, as well as other economic crimes.

Companies Registration

In Bulgaria, for doing business every company and/or independent entrepreneur has to be registered within the Business Register. The following are to be submitted upon registration: constituent documents, information about the owners and managers, and paying the relevant state fees. In the aftermath of having been registered, the company obtains a unique identification number-Uniform Identification Code (EIC) used upon carrying out all official documents and transactions.

Access to information

Information of the Business Register is of a public nature and shall be looked into through an official website of the register. Thus, it provides the possibility to check a legal status of the company, its financial condition, history of changes of the constituent documents, and other information important for informed business decisions.

Business benefits

The Bulgarian Commercial Register gives some privileges to the companies included therein, namely: it confers legitimacy and acceptance within the business circle, eases procedures in receiving loans and financing, as well as enabling participation in public and private tenders. Above all, the features of transparency and easy access help in gaining trust with partners and customers.

On a governmental level, the Business Register will foster stability and transparency of the business climate within the state. The Bulgarian Business Register becomes a source of company information that guarantees protection of rights for investors, consumers, and enhances the credibility of the Bulgarian business internationally. It is a very important tool that cannot be overlooked, considering the tremendous contribution it gives towards the development of the economy by fostering transparent and efficient conduction of business.

Furthermore, Bulgaria boasts a competitive and cost-effective workforce. The country’s skilled labour pool is not only well-educated, but also comes at a lower cost compared to many other European nations. This cost advantage allows businesses to maintain operational efficiency and competitiveness. Additionally, Bulgaria’s pro-business policies and low corporate tax rates further incentivize entrepreneurs. The government’s commitment to fostering a business-friendly environment is evident in its efforts to streamline bureaucratic procedures and reduce red tape, making it easier for businesses to establish and operate in the country.

In addition to economic factors, Bulgaria’s rich cultural heritage and diverse landscapes contribute to an appealing quality of life for entrepreneurs and their employees. The country offers a pleasant mix of historical charm and modern amenities, with picturesque landscapes ranging from mountains to beaches. The affordability of living in Bulgaria, coupled with its excellent healthcare and education systems, creates an attractive environment for individuals looking to relocate for business purposes. Overall, Bulgaria’s combination of strategic location, cost-effective workforce, and supportive business policies make it a promising destination for those embarking on entrepreneurial ventures.

If you’re considering launching your enterprise in Bulgaria, leveraging the streamlined process and favourable tax structure, our team of expert consultants at Regulated United Europe (RUE) is prepared to offer the necessary expertise to guide you to success. Proficient in both Bulgarian and EU legislation, we provide assistance in company establishment and related services, along with support in accounting and tax optimization. Secure a personalized consultation today to kickstart your new venture in Bulgaria.