Opening a company in Bulgaria is usually an easy and straightforward process and we're here to walk you through all steps and ensure everything goes smooth. We facilitate the preparation of all necessary documents and the registration procedure.

There are few key points you shall be aware of:

• The owner of the firm may have any nationality - local (Bulgarian) or foreign (UK or other).

• A shareholder could be any UK citizen (physical person) or a legal entity. There are certain documents required to initiate the process, especially if the shareholder would be a UK legal entity.

• The minimum required capital is 2 BGN, or 1 EUR.

• The registration procedure requires an escrow bank account for transfer of the registered capital. This account has to be opened by the company's representative.

Each foreign company may register a representation body in Bulgaria called Representative Office. The REP Office is not a separate legal entity and cannot commit commercial activities alone. It can only advertise the commercial activity of the foreign company and can lead negotiations with any other client, but cannot be a contract party.

 

The representatives of the REP Office can be UK citizens, Bulgarian or any other nationals. Each UK/ foreign representative of a REP Office can apply for and receive a Residence Permit in Bulgaria. We can facilitate the whole process of preparation of all necessary documents and the registration process itself. 

Becoming VAT registered means that you can reclaim any VAT that you are charged when you pay for goods and services. If you're not registered for VAT, other companies will know that your turnover is below a certain level and they may choose to make assumptions about your business based on that.

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If we need to talk numbers, any company with annual turnover exceeding EUR 25 000 is subject to VAT regulations. The Value Added Tax in Bulgaria is 20% and VAT reporting shall be performed on a monthly basis.

 

Application for VAT recovery rules requires specific experience and adequate contacts with the tax administration. We're here to offer our expertise and take care of all that is needed.

Moving to Accountancy, there are three main points which we shall highlight: bookkeeping, payroll and financial statements.

Bookkeeping is compulsory for all legal entities operating in Bulgaria. It has to be made according to Accountancy Act and applicable Accounting standards.

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All legal entities have to conduct their payroll activities on a monthly basis. This applies for employees and management remunerations, their income tax and social security payments. The legal regulations are subject to an annual review and change – monthly salaries, civil contracts, staff etc.

 

Each company has to prepare annual financial reports according to Bulgarian Accounting Standards (or for joint stock or other big companies) according to the International Financial Reporting Standards.

Each company and/ or self-employed individuals must prepare and submit an annual tax declaration. The deadlines vary. This process requires application of several tax exemptions with financial effect in to the next years.

 

Other tax returns are required if the company is in possession of real estates or automobiles. It includes all incomes originated from Bulgaria that may or may not be subject to a double taxation treaty.

 

We could represent you in case of tax or social security audit inspection before the respective authorities.

 

Bulgaria has signed more then 65 double taxation treaties including UK. They differ substantially in their terms and require individual evaluation of their application, case by case.

 

We recommend and we can do for your company a study of the tax administration’s position in advance in order to avoid further complications.