Bulgaria company formation

Bulgaria is based in Southeast Europe and is bordered by Serbia and Macedonia in the west, by Greece and Turkey in the south, the Black Sea to the east and Romania to the north. The area of the country is 110,994 square kilometres with a population of 7.37 million people. Bulgaria is also part of the EU, NATO, The Council of Europe and the OSCE.

When it comes to saving taxes, the formation of a company in Bulgaria isn’t such a bad idea. Bulgaria has a flat corporate income tax rate of 10%, a flat personal income tax rate of 10%, and a dividend tax of 5%. It also has a wide network of benefits of double tax.

For NON-EU entrepreneurs there are possibilities for business immigration in Bulgaria.

Why the formation of a company in Bulgaria is a great idea

Bulgaria has a lot to offer to businesses and entrepreneurs from within the EU when it comes to lower taxes. The country has the lowest and most popular tax system in Europe. A few reasons for this:

  • Lowest setup fees within the EU.
  • Lowest required founding capital – 1€ .
  • Lowest Tax on Dividends in the EU – 5% only.
  • Lowest Tax on Corporate & Personal Income – 10% flat rate.
  • Lowest Social security contributions in the EU.
  • VAT within the EU – 0%.
  • Easy, Fast and Secure incorporation service.
  • Affordable accounting & legal services.
  • Company incorporation within 72 hours
  • Double Taxation treaties with 70+ countries.

Corporate income tax applies to companies and partnerships constituted under Bulgarian law. The corporate rate is just 10% and there are possibilities for tax holidays, provided that certain conditions are met. A tax holiday enables a reduction in the amount of annual corporate income tax that is due on profits. Companies that are on special purpose and licensed investment companies that are authorized for public offering, are exempt from corporate tax.

Use the formation of a Bulgarian company to save on taxes

If you decide upon the formation of a Bulgarian company, there are some things to consider. Whatever company type is chosen, all businesses are required to be registered in the commercial register of the district court that is located within the area where the business is. Upon formation, the business must also be registered at the local tax office and also the National Statistical Institute.

The types of Bulgarian companies

  • Limited liability company (OOD)
  • Single person limited liability company (EOOD)
  • Joint stock company (AD)
  • Holding company
  • Joint venture
  • Branches

The formation of a business in Bulgaria is affordable and easy. The combination of low taxes and low labour costs in the country make it into a beneficial location for the formation and growth of a business. And since there are so many benefits available to new business owners, companies can grow rather quickly and easily. Bulgaria is also a member of the European Union, which comes with some added benefits.

Intercompany Solutions is eager to assist you in the formation of your Bulgarian business. We provide all-in business start-up services and can take care of things such as opening a bank account, registered office solutions, legal assistance, and visa immigration services in Bulgaria.

In short; we are the perfect partner to support you in the formation of your Bulgarian business.

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