Why Bulgaria – An Opportunity To Grow Your Business

December 15, 2020

By Nikola Nikolov

You probably stumbled upon Bulgaria going through the map of Europe, searching for locations which are not expensive at all but still in the European Union. Bulgaria is much more than that and in more than one aspect.

Located on the Balkan peninsula with the main freeway slicing through the middle of the country – one of Europe’s best kept secrets is pretty well connected to the rest of the continent. With one of the fastest and most secure internet connections in the world – everything seems just a click or a couple of hours away. This is all good and can affect a certain part of an up and coming business, sure, but nevertheless the most important things remain – economic climate and taxation regime. And this is where it gets really interesting.

Bulgaria is a gem within the EU, holding many opportunities for growing a business or starting from the scratch.

WORK ALONG, NOT DESPITE

Bulgaria has the second lowest corporate tax rate in the EU and the most favorable and stable Income and VAT taxes – creating what specialists in the field refer to as “bestshore”. The 0% corporate tax for non-domestic legal entities if the sources are from business done outside of the country is pretty telling of the Bulgarian tax environment.

The policy of the Bulgarian government (in stable position for the last 11 years) has always been definitively open not only towards foreign investments as an up and coming country would be – but it has specifically favored foreign-operated businesses being relocated in the country.

This idea is mainly represented through the eased company registration regime – which is fast, doesn’t require Bulgarian citizenship, can be done from abroad and requires just a handful of documents.

It takes no more than two weeks to register a company in Bulgaria – with the filing of the documents and processing them – taking roughly 4 days to a week, and creating a bank account – taking around 10 days. The good thing is that we can do it for you.

You can register your company on an address you rented, we can rent an address for you or you can register your legal entity without an address at all – whatever suits you. The Bulgarian system is as flexible as European law allows.

ONLY THE GOOD SIDES OF EU’S REGULATIONS

You can also apply for a VAT number – which we strongly recommend – because you will be able to take advantage of several tax reliefs but most importantly – freely trade in the EU, which is essential if you are into the field of eCommerce (insanely fast internet connection plays a vital role here).If you want to create an PLC (OOD) the minimum share capital required is 1 euro, which adds to the freedom of choosing an option which suits you. Within Bulgarian PLC’s (OOD) Directors and Shareholders can be either corporate entities or natural persons. OODs require a minimum of 1 Director and 1 Shareholder, this can be the same person or entity and they may reside anywhere in the world.

Bulgaria has double tax treaties with 70 countries including the UK, USA, Canada, China, Russia etc. Also all of the EUs treaties apply for Bulgaria as well as it is a country-member -which also means that the euro will be introduced in a few years because the country is currently in the waiting room for the Eurozone – which will additionally aid the free movement of capital.

SHELTER FOR YOU AND YOUR BUSINESS

Putting pen to paper Bulgaria is a country which favours the different needs of developing businesses – having transitioned from a totalitarian regime to a full functioning democracy Bulgaria’s economy is eager to welcome entities with fresh ideas and help them achieve what they’re after in a country that has a well deserved spot in the European Union.

Of course you’ll probably need a helping hand along the way – and that’s exactly what we are here for. You can contact us here for a free consultation.