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Bulgaria

Steps to Set Up a Company:

Bulgaria

 

Choose a Business Structure

  1. Sole Trader (ET - Ednolichen Targovets): Single owner, full liability.
  2. General Partnership (SD - Sabiratelno Druzhestvo): Two or more partners, shared liability.
  3. Limited Partnership (KD - Komanditno Druzhestvo): General and limited partners.
  4. Limited Liability Company (OOD - Druzhestvo s Ogranichena Otgovornost): Separate legal entity, limited liability.
  5. Single-Member Limited Liability Company (EOOD - Ednolichno Druzhestvo s Ogranichena Otgovornost): A limited liability company with one owner.
  6. Joint-Stock Company (AD - Aktsionerno Druzhestvo): Separate legal entity, limited liability, suitable for larger businesses.
  7. Branch: A branch of a foreign company operating in Bulgaria.
  8. Representative Office: Limited to marketing and promotional activities, cannot conduct business transactions.

Register Your Company

  1. Choose a Company Name: Ensure it is unique and follows naming regulations.
  2. Prepare the Articles of Association (for OOD/EOOD) or Statutes (for AD): Outlining the company’s structure and rules.
  3. Open a Capital Account: Deposit the initial capital required for the company type.
  4. Register with the Commercial Register and Register of Non-Profit Legal Entities: Submit the incorporation documents and pay the registration fee.
  5. Obtain a Bulstat Number: From the National Statistical Institute.
  6. Register for VAT with the National Revenue Agency (NRA): If applicable.

Open a Bulgarian Bank Account

  1. Set Up a Business Bank Account: Necessary for managing business finances.

Obtain Necessary Licenses and Permits

  1. Check Industry-Specific Requirements: Depending on the nature of your business, you may need specific licenses or permits.

Comply with Bulgarian Employment Laws

  1. Employment Contracts: Draft contracts that comply with Bulgarian labor laws.
  2. Register with the National Social Security Institute (NSSI): For social security purposes.
  3. Health and Safety Regulations: Follow guidelines from the Ministry of Labour and Social Policy.

Accounting and Reporting

  1. Set Up an Accounting System: Maintain accurate financial records.
  2. Annual Financial Statements: Prepare and file annual financial statements.
  3. File Annual Tax Returns: Submit annual tax returns to the NRA.

 

Laws and Regulations to Consider

Corporate Law

  1. Commercial Act: Governs the formation and operation of companies.
  2. Obligations and Contracts Act: Governs contracts and obligations.

Tax Law

  1. Corporate Income Tax Act: Governs corporate income taxation.
  2. Value Added Tax (VAT) Act: Governs VAT regulations.
  3. Personal Income Tax Act: Governs income tax for individuals and sole traders.

Employment Law

  1. Labour Code: Governs the terms and conditions of employment contracts.
  2. Social Insurance Code: Governs social security and health insurance contributions.
  3. Health and Safety at Work Act: Sets health and safety standards for workplaces.

Data Protection Law

  1. General Data Protection Regulation (GDPR): EU-wide regulation governing data protection and privacy.
  2. Personal Data Protection Act: National implementation of GDPR.

Environmental Law

  1. Environmental Protection Act: Governs environmental protection and sustainability practices.

Intellectual Property Law

  1. Trademarks and Geographical Indications Act: Governs the protection of trademarks.
  2. Patents and Utility Models Act: Governs the protection of patents.

By following these steps and adhering to the relevant laws and regulations, you can successfully establish and operate a company in Bulgaria. It’s advisable to consult with legal and financial experts to ensure full compliance and smooth setup.

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When to Consider Setting Up a Company in Bulgaria:

  1. Strategic Location: Bulgaria’s location provides easy access to markets in Eastern Europe, the Balkans, and the European Union.
  2. Business-Friendly Environment: The country offers a favourable business climate with various incentives for investors.
  3. Competitive Tax Rates: Bulgaria has one of the lowest corporate tax rates in the EU at 10%.
  4. Skilled Workforce: Access to a highly educated and skilled labour pool, particularly in technology and engineering.
  5. Cost-Effective Operations: Lower labour and operational costs compared to Western Europe.
  6. Advanced Infrastructure: Bulgaria has a well-developed infrastructure, including transportation, telecommunications, and energy.
  7. Innovation and Technology: Growing focus on innovation and technology, with support for startups and tech businesses.
  8. Stable Economic Environment: Bulgaria offers a stable macroeconomic environment with low inflation and a stable currency.

By considering these factors and aligning them with your business goals, you can determine if setting up a company in Bulgaria is the right move for your organization. Consulting with local experts and advisors can further help in making an informed decision.

 

DALL·E 2024-07-08 12.02.10 - An illustration promoting Grant and Grahams global support for setting up companies. The image features a globe with various business icons around it
How to Set Up a Company

Step-by-Step Guide: How to set up a Company

Setting up a company involves a series of crucial steps that require careful planning and execution. From choosing the right business structure to understanding legal and tax obligations, each stage is vital to the successful launch and operation of your business. This step-by-step guide provides a comprehensive overview of the key processes involved in establishing a company, ensuring you have the knowledge and tools needed to navigate the complexities of business formation.