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The Necessary Steps to Establish a Company in Bulgaria

Updated: Jan 16

Bulgaria, a land where rich history meets modern opportunities, has emerged as an enticing destination for entrepreneurs and investors worldwide. With its strategic location, business-friendly environment, and favorable taxation policies, Bulgaria has become a prime choice for those looking to establish and grow their businesses in Europe.

However, before embarking on this exciting journey, it's essential to understand the general conditions for establishing a company in Bulgaria. Pishtalova Law Company specializes in guiding you through this process, ensuring that your business endeavors start on solid legal ground.

1. Selecting the Right Business Structure

The foundation of any successful business venture lies in selecting the appropriate business structure. Our legal experts at Pishtalova Law Company can assist you in making this crucial decision based on your business goals and objectives. The common business structures in Bulgaria include:

➢ Limited Liability Company (LLC): Ideal for small and medium-sized enterprises.

➢ Joint-Stock Company (JSC): Suited for larger enterprises, JSCs have a minimum share capital requirement of 50,000 BGN and can issue shares to the public.

➢ Branch or Representative Office: For foreign companies seeking a presence in Bulgaria, you can establish a branch or representative office while adhering to local regulations.

2. Registering Your Company with Confidence

Navigating the registration process in a foreign country can be complex. However, with Pishtalova Law Company by your side, you can be confident that your company registration will be handled professionally and efficiently. Our services include:

✓ Reserving a Unique Company Name: Ensure your chosen name is distinct and complies with local regulations.

✓ Preparing the Necessary Documentation: Help you compile the required documents, from articles of association to proof of legal address.

✓ Supporting with Opening a Bank Account: Help you fill the necessary registration documents in connection to the bank’s requirements for foreigners.

✓ Guidance through Registration: Manage the registration process, from submitting the paperwork to obtaining the necessary identification numbers and permits.

3. Expertise in Bulgarian Taxation

Understanding the Bulgarian taxation system is paramount to your business success. Bulgaria offers one of the lowest corporate tax rates in the European Union at 10%, making it an attractive choice for investors.

✓ Register your company for taxation with the National Revenue Agency (NRA)

✓ Obtain a Value Added Tax (VAT) number if applicable.

✓ Ensure full compliance with Bulgaria's tax laws and obligations.

- Corporate tax compliance

- Value Added Tax (VAT)

- Double taxation treaties

4. Compliance and Ongoing Legal Support

Depending on your business activities, you may need specific licenses and permits. Check with relevant authorities to ensure compliance with Bulgarian regulations.

If you plan to hire employees, familiarize yourself with Bulgaria's labor laws, employment contracts, and social security obligations. Comply with minimum wage and working hour regulations.

Due to the above, the following actions are necessary:

✓ Obtaining licenses and permits

✓ Compliance with labor laws

✓ Intellectual property protection

✓ Handling legal disputes and challenges

Pishtalova Law Company is ready to provide you with expert guidance, ensuring that your business venture in Bulgaria starts on a strong legal foundation.

Your success is our priority, and we are here to guide you every step of the way. With our legal expertise and your entrepreneurial spirit, the possibilities are endless in the vibrant business landscape of Bulgaria.

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