Company Formation in Bulgaria

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

• 4-8 working days;
• Around 2 weeks if everything is done remotely.

Can I form a company in Bulgaria remotely?

The whole incorporation process can be conducted remotely. No travel is necessary. Notarization of documents is necessary.

• A Power of Attorney (POA) from (all) partners/shareholders is needed;
• The POA is sent to you by us based on the services you want;
• You have to certify the POA by a notary and, in some cases, legalize it by apostille (some countries need full legalization);
• Once you have the POA on you, we double-check, and you send us the original form (physical document!) via courier to our address;
• Bulgaria is part of the Hague Convention of the Apostille.

Necessary information to begin with company formation in Bulgaria

• 3 options for your desired name for the company and a company contact email address;
• Names, addresses, and emails of all shareholders and board members;
• Short description of your company’s activity.

Without a VAT number in Bulgaria

• Your company will not be eligible to receive VAT refunds, which means everything bought is 20% more expensive (important: B2B payments between two VAT-exempt companies are not more expensive);
• Your company will not have to file monthly tax returns (prerequisite: no one receives a salary), which means low costs.

With a VAT number in Bulgaria

• The company will be eligible to receive VAT refunds, which means you can make use of the reverse-charge mechanism;
• Monthly tax returns have to be filed, even if no transactions occur;
• Every legal person can register for VAT in Bulgaria;
• Registering for VAT is compulsory if a company’s turnover reaches 50,000 BGN (25,600 EUR as of December 2020);
• Registration for VAT can be filed online without specific prerequisites.

Before we help you to apply for a VAT number, you should carefully think about the advantages and obligations that go along with it. Registering as a VAT payer might be either voluntary or obligatory, depending on the turnover.

Required documents to provide to register a company in Bulgaria

• Passport copies (scans) of shareholder/s and director/s, also beneficiary owner if applicable;
• A Power of Attorney (in case of a remote company registration);
• Certified company documents (in case at least one of the shareholders is going to be a foreign company).

DTAA signed by Bulgaria for companies

Many countries have bilateral conventions to avoid double taxation and prevent fiscal evasion. Bulgaria participates in OECD’s Automatic Exchange of Information (AEOI).

Albania, Algeria, Armenia, Austria, Azerbaijan, Bahrain, Belarus, Belgium, Canada, China, Croatia, Cyprus, Czech Republic, Denmark, Egypt, Estonia, Finland, France, Georgia, Germany, Greece, Hungary, India, Indonesia, Iran, Ireland, Israel, Italy, Japan, Jordan, Kazakhstan, Korea, Kuwait, Latvia, Lebanon, Lithuania, Luxembourg, Macedonia, Malta, Moldova, Mongolia, Morocco, Netherlands, Norway, Poland, Portugal, Qatar, Romania, Russia, Singapore, Slovakia, Slovenia, South Africa, Spain, Sweden, Switzerland, Syria, Thailand, Turkey, Ukraine, United Arab Emirates, United Kingdom, United States of America, Uzbekistan, Vietnam, Yugoslavia, and Zimbabwe.

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Accounting and audit requirements for a company in Bulgaria

• An annual tax return shall be filed every year, no more than 3 months after the end of the year (by March 31 of the year +1);
• Along with the tax return, the Ministry of Finance expects an annual activity report, including all the financial statements;
• Accounting is therefore mandatory, and books shall be kept at all times within the Bulgarian registered office of the company.

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Economic substance and residency requirements for companies in Bulgaria

• There are no restrictions for foreigners to be directors or hold 100% of a company in Bulgaria;
• An address in Bulgaria is necessary to register the company.

LegalBison offers help with all of the above requirements. We assist and are local on the ground. Speak now for free with one of our consultants to get your business started.

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