COST OF COMPANY – EUR 1200
Cost includes VAT registration and opening bank account.
Among all European countries, Bulgaria offers one of the most favorable tax system. This includes a low corporate tax rate – 10% on profit and a simple company administration system. Despite moderate economic performance of Bulgaria, this country has good growth potential. Comfortable, warm climate and a large number of historical monuments make it visiting attractive.
A) The main advantage is a low corporate tax rate – 10%.
B) Low cost of services and low cost of labor.
C) It is easy to register for VAT. A company automatically gets a VAT number upon registration.
D) It is easy to open bank account.
E) A registered company becomes a tax resident right after registration.
Disadvantages of Bulgaria
A) Withholding Tax on dividends paid up – 5%.
B) Low reputation of the country.
B) Undeveloped state electronic services.
Limited Liability Company (OOD)
The main legal form of business in Bulgaria is a Limited Liability Company (or OOD).
This form of business shall be established on the basis of the Memorandum of Incorporation and the Articles of Association. These documents are to be certified by the owners and submitted to the Register together with the Charter of the company.
There can be one Director of any nationality and one owner of the company.
The owner can be a legal entity, and the Director cannot be a legal entity.
The minimum paid-up capital of the company shall be BGN 2.