In common with other EU Member States and Central and Eastern European economies, Bulgaria has a fairly simple and straightforward process for registering a company. It is a strategic place for international business ventures which is in the upper third globally for ease of doing business. As an EU Member State, it offers financial, monetary and investment stability and low legal and political risk.
Incorporators are not required to be in Bulgaria in person as registration can be completed using a power of attorney.
New Balkans Law Office has extensive experience assisting foreign private and corporate clients to expand in Bulgaria by establishing a range of Bulgarian entities which would allow them to benefit from the advantageous tax regime (10% income tax; 5% tax on dividends) and from the dynamic and reliable business environment.
Here we outline the most important steps one needs to consider when setting up a company in Bulgaria
Choosing the legal form of the company
If required, entities can convert from one legal form into another after they are registered.
Limited Liability Company - EOOD or OOD
A limited liability company in Bulgaria can be incorporated with a single or multiple shareholders and a single or multiple directors. Shareholder(s) and Director(s) can be of any nationality and are not required to reside in Bulgaria.
The minimum capital required for setting up an E/OOD company is just ~EUR 1.
The E/OOD is also the most commonly chosen legal form used by foreign nationals to start a business in Bulgaria.
Public Liability/Joint Stock Company - EAD or AD
A public liability/joint stock company can be incorporated with a single or multiple shareholders. There are several requirements which are more stringent than with a regular E/OOD company that need to be met before incorporation. Those are:
An E/AD company generally is both a more sophisticated and more prestigious form which allows to raise capital more easily. It also is a prerequisite to a listing on a regulated securities market in Bulgaria or elsewhere in the EU.
What NBLO can do for you
We will be able to prepare the requisite corporate documents and help you design a structure that will fit your purposes.
A Bulgarian company may be the ideal vehicle for your business growth. For more information please contact us at firstname.lastname@example.org.
Please note that the New Balkans Law Office team provides company incorporation services in the UK as well. For more information please contact us at email@example.com.
A win in an insurance exclusion clause dispute at the Supreme Court
NBLO's dispute resolution team, led by Yordan Neshkov, secured a success against a large Bulgarian insurer in a claim brought on behalf of a UK national, who had lost her property in a fire. The insurer had refused to pay out under the insurance, on the grounds that a widely drawn clause in its general terms allegedly excused it from paying whenever there was a breach of building regulations, even if (as was accepted in this case) this breach was invisible externally, could not be discovered through reasonable investigation and was not caused by the insured. NBLO had good reasons to argue that this position was unsupported in the Bulgarian Insurance Code or civil law generally and persuaded the Supreme Cassation Court to back it. This is covered more fully in an article on our website.
© New Balkans Law Office 2019