How to Start a Business in Bulgaria
Different legal possibilities for foreign investors in order to start a business in Bulgara.
When foreign investors decide to start a business in Bulgaria, in most of cases they prefer to set up a local limited liability company. The procedure of company formation in Bulgaria is very simple and it takes a couple of days. The duration of the procedure depends on the time necessary for signing, verifying and obtaining of all necessary documents. The company is entered into the Commercial register immediately following submission of the application for registration. However, for the purpose of registration of the company the investor shall have an address in Bulgaria and accountancy’s statement about the respective capital (depending on the scope of activity of the company). Of course, the foreign investments could take the form of any of the other of commercial corporations stipulated in the Commercial Code.
The other variant for starting a business in Bulgaria is foundation of commercial representation which is registered at the Bulgarian Chamber of Commerce and Industry. The commercial representation is not a legal entity and may not engage in economic activities. It is set up only for activities related to marketing, finding clients, establishing contacts within the country, as well as any other activities, which are not considered as economic or commercial by virtue of the law.
Foreign companies can register in Bulgaria a branch which is entitled to engage in business activities under the national law. A branch is a part of the main company, but with a different seat. It is entered into the commercial register of the court at its location. A branch keeps account books as an independent company. A branch of a foreign company prepares a balance sheet. No authorized capital is needed for its opening.
The other option is the foreign person to operate in Bulgaria as place of commercial activity without registration of local legal entity but only for tax purposes.
AUTHOR: Valova & Angelova Law Firm
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Disclaimer: While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal advice as individual situations will differ and should be discussed with an expert and/or lawyer. For specific technical or legal advice on the information provided and related topics, please contact the author.