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Company registration

ABOUT BULGARIA

Bulgaria is a country located in the south-eastern part of the Balkan Peninsula in south-eastern Europe. It has a strategic geographical location in the Balkan region with a long border to the north along the Danube river with Romania. It is also bordered by Serbia and the Republic of Macedonia to the west, Greece and Turkey to the south and the Black Sea to the east. With a territory of 110 994 km2, Bulgaria ranks as Europe’s 16th largest country. Bulgaria’s location has defined it as a historical crossroad for various civilisations and as such it is the home of some of the world’s most ancient cultural artefacts.
The population of 7.36 million people is predominantly urban and mainly concentrated in the administrative centres of its 28 provinces. Sofia (population: 1.22 million) is the capital and largest city of Bulgaria. It is located in western Bulgaria, at the foot of Mt Vitosha and approximately at the centre of the Balkan Peninsula. Other major cities include Plovdiv, Varna, Burgas and Ruse.
The national currency of Bulgaria is the Bulgarian lev (BGN), which has maintained a fixed exchange rate vis à vis the euro since 1999. Accordingly, the lev remains quoted at the rate of EUR 1 = BGN 1.95583

The registration of an EOOD

The registration of an EOOD (Sole Member Limited Liability Company) or OOD (Limited Liability Company), in line with Bulgarian legislation system, is carried out in the following way:

During the first stage, you should send us the following:

1. A copy (from all sides) of a valid ID document. In case of an OOD – a copy of the ID document for each associate;
2. The name you have chosen for your company, so that we can verify its availability in the Commercial Register;
3. The amount of the initial company capital;
4. In the case of an OOD – the percentage of each associate’s share as well as the type of management. All associates can be managers – together and separately, or only together (in this case their signatures would be effective only if all associates have signed the document). There is also the possibility to have one manager only, who is going to represent all associates;
5. Subject of the activity (the main activity carried out by your company);

COMPANIES IN BULGARIA

The main legal forms of business entity in Bulgaria are the limited liability company, the joint-stock company, the branch and the Trade Representative Office (TRO). The Bulgarian Commercial Code (Tărgovski Zakon) also provides for three forms of partnership – the general partnership (săbiratelno druzhestvo), the limited partnership (komanditno druzhestvo) and the partnership limited by shares (komanditno druzhestvo s aktsii), but these are rarely used by foreign investors.
– The limited-liability company (druzhestvo s ogranichena otgovornost, abbreviated in Bulgarian to OOD (ООД)) has a minimum share capital of BGN 2, divided into shares (dialove). It may be founded by any number (including a single person) of persons, natural or legal. There are no restrictions as to nationality or residence. Its governing body is the shareholders’ meeting and it is managed by one or more managers (directors), who are usually but not necessarily members of the company themselves
– Joint-stock company The joint-stock company (aktsionerno druzhestvo, abbreviated in Bulgarian to AD (АД)) has a minimum share capital of BGN 50 000, divided into shares (aktsii). It may be founded by any number (including a single person) of persons, natural or legal. There are no restrictions as to nationality or residence. At least 25% of its share capital must be fully paid up upon incorporation. The AD’s governing body is the shareholders’ meeting, and it is managed by one or two boards. Under the single-tier system, there is only one board of directors (‘the executive board’), which manages the company and is directly responsible to the shareholders’ meeting
– Branch The opening of a branch (klon) is one of the alternatives to the establishment of a Bulgarian company. Foreign companies registered abroad, as well as foreign individuals or persons that do not qualify as legal entities, may register a branch in Bulgaria, provided that they are properly incorporated and/or entitled to conduct business under the national law of their home country.

Trade Representative Office (TRO) A foreign person may register a trade representative office (tărgovsko predstavitelstvo) in Bulgaria, provided that it is entitled to conduct business under the national law of its home country. A TRO is established by means of registration with the Bulgarian Chamber of Commerce and Industry. A TRO is not a separate legal entity and it may not carry out business activities.

WHY CHOSE BULGARIA:
• 10% FLAT-RATE INCOME TAX\lowest income tax in the European Union
• VAT-FREE EU TRADING no VAT due for any trading between entities within the European Union
• LOW OFFICE COSTSprices as low as 5 EUR per m2 (6 USD per m2) per month
• LOW LABOR COSTS as low as 260 EUR per month per person at minimum wage