Gain Gels Syndicate Business Company Formation in Bulgaria

Company Formation in Bulgaria

Company formation in Bulgaria

Company formation in Bulgaria is a popular destination for entrepreneurs and investors due to the country’s skilled labour force, favourable corporate taxes and geographical position. The country is a full member of the EU, NATO, the Council of Europe and WTO and has one of the lowest corporate income taxes in the world as well as low social insurance costs for employees. In addition, the Bulgarian legal system is very similar to that of the EU and business registration can take only a few days in case all the required documents are prepared ahead of time.

During the first stage of a new venture in Bulgaria, the investor should decide on the form of a business entity that will suit his or her activities best. This may be an OOD – Bulgarian limited liability company, which is the most common choice for small and medium businesses or an AD – joint stock company, suitable for larger companies. An OOD can be owned by a single person or several people and legal entities, while an AD can only be owned by Bulgarian nationals.

Unlocking Business Potential: A Guide to Company Formation in Bulgaria

In addition, the investor must register his or her company in the Bulgarian Commercial Register and obtain a Tax Identification Number. Finally, a management agreement is signed by the shareholders or the owner (for an EOOD) or managers, determining the rights and obligations of each party. Alternatively, the owners can also choose to establish a general partnership under the Bulgarian Civil Law, which combines the business activity of two or more persons in order to achieve certain economic goals.

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