If you've considered outsourcing part of your business or relocating your personal business activity in Bulgaria, you probably already know some things about the country. Like the fact that it's an Eastern-European country, Member of the European Union since 2007 and that regardless of the low standard of living, it's a preferred destination for business and investment. Numerous small- and medium-sized companies from Europe and overseas incorporate subsidiary companies or branches of their businesses in Bulgaria, along with world-wide brands, such as Aurubis, Siemens, OMV, Cez, Kaufland, Lidl, Billa, Telenor, Zara, H&M, Subaru, etc. What's commonly attractive to foreign businesses?
The Low-Cost Country Among EU Member States
Bulgaria holds the third lowest place for wages in Europe and the first place of lowest minimum wage in the EU, according to official statistics. Simultaneously, the country's widely spread, state subsidized higher education system creates a moderately wide mass of competitive and educated potential employees at notably lower Employee Related Expenses (ERE) rates than in the rest of the EU. That's regarded as one of the leading benefits for Outsourcing-Oriented foreign companies, searching for combination of price and quality along with the benefits of the internal EU market and funding.
With its 10% profit taxation and 5% tax on dividend, Bulgaria is rated among the countries with lowest tax rates worldwide, while remaining outside of tax heaven classification.
Accessible Company Registration and Management System
Every entity or individual is eligible to open a company in Bulgaria. The grid provides overall information on company formation of the most widely preferred type of trade company under Bulgarian law: the LTD (Limited Company).
|Minimum numbers of shareholders||1|
|Shares can be owned directly by a foreign company or an individual||Yes|
|Liability of the shareholder/s||Limited to the amount of the registered capital|
|Statutory minimum for registered capital||€1.1|
|Minimum number of registered managers (representatives )||1|
|An individual, who is not a shareholder, can be a manager?||Yes|
|An individual, who is not a Bulgarian resident, can be a manager?||Yes|
|Fixed expenses for registration: State tax||€28.00|
|Flexible expenses: Attorney's fee, Notary fee, Official translation fees (when applicable), Bank commissions||Average €300-€500|
|Time period for registration||7 days|
|Time period for liquidation (company closure)||8 months|
|Can shareholders amend the number, assign or dismiss managers at any time?||Yes|
|Can shareholders change the amount of the registered capital at any time?||Yes|
|Can shares be sold, donated, or put in pledge?||Yes|
|Are the assets of the company owned by the shareholders?||No|
|What are the corporate taxation rates?||10% profit tax + 5% tax on dividend (withheld upon dividend allotment only)|
|Are business-related expenses acknowledged for tax purposes?||Yes|
|Is VAT registration due directly upon registration?||No|
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