Our website uses  cookies for statistical purposes.

  • 66 Vitosha Blvd., zip code 1463, Sofia, Bulgaria
  • clients(at)lawyers-bulgaria.com
  • +359 888 350 643
Our Articles

Set up a Joint Venture in Bulgaria

Set up a Joint Venture in Bulgaria

A joint venture in Bulgaria is a business made by two or more partners (foreign and Bulgarian), which are also considered shareholders. This entity considered a legal partnership is quite popular in Bulgaria, due to the numerous benefits that come with it. Our Bulgarian company formation specialists can provide you with complete guidance and information if you want to set up a joint venture in Bulgaria. You can also receive details about how to set up a company in Bulgaria, according to the Commercial Code and laws in the country.

Registering a joint venture in Bulgaria

If you have decided that a joint venture is a proper entity you wish to establish in Bulgaria, it is recommended to ask for suitable help and assistance from our Bulgarian advisors in company formation, who can support you in every step of the company registration process.  The first step is to reserve a name for your company, draft the Articles of Association, open a bank account, and register for social contributions in the country.

Besides that, the joint venture contract needs to be notarized and registered with the Registry Agency of the Bulgarian Ministry of Justice, in the Bulgarian language and another foreign language. The same agreement must also be registered with the Commercial Register in Bulgaria, where details about trademarks and assets need to be provided.

Bulgarian laws are permissive for overseas entrepreneurs who want to establish a joint venture in the country. Financial services, energy, pharmaceuticals, or insurance are preferred sectors entrepreneurs choose to open joint ventures in Bulgaria. You can receive complete guidance in this matter if you solicit help from our company formation agents in Bulgaria.

Authorizing a joint venture in Bulgaria

We remind you that joint ventures in Bulgaria are fully allowed and there is no condition regarding the number of local partners who want to enter a JV. The same goes for the investors who want to create a joint venture in Bulgaria, alongside local businessmen. Authorities in Bulgaria agreed on a set of particular measures to encourage foreign investments in Bulgaria that come under a JV entity, where special incentives are adopted given the sum of investments.

We can offer a range of accounting services for those who want to open a company in Bulgaria or own one. Thus, our accountants in Bulgaria can take care of bookkeeping, payroll, internal and external audits, preparation of annual financial statements, and more. Therefore, do not hesitate to contact us and benefit from complete services in this regard, no matter the type of company you have or the activities implicated.

Operational benefits of a joint venture in Bulgaria

If you want to open a company in Bulgaria, you might be interested in the benefits of a joint venture in Bulgaria. Here are some of the operational advantages:

  • Having shared capital, financial risks are lower.
  • The joint venture is considered national and can develop business relations with, varied trade unions, consumers, government, and consumers.
  • A joint venture in Bulgaria allows those who own it to control new technologies and access new skills and knowledge.
  • The competitive and economic advantages of a joint venture in Bulgaria.
  • It is very easy to enter foreign markets with a joint venture, considering that it is already implemented in the country of origin, with the help of distribution channels. Sales can increase in new markets and the company gains competitiveness.
  • As for the economic benefits, a joint venture can limit the costs and risks since the charges are not borne by one company only. There is no commercial risk because of the local market experience and local management control. There are also advantages in terms of taxes.

Are there limitations when creating a joint venture in Bulgaria?

It is known that the capital is not owned by one partner, and the profits should also be shared. On the other hand, you should know that the legal structure of a joint venture in Bulgaria can be considered multifaceted because creation and dissolution can be costly.

The partnership can also develop a complicated aspect when allocating dividends or on the way the business is controlled. There is also the possibility that the partners of a joint venture in Bulgaria may not share the same marketing strategies, business vision, and other such aspects. It is very important to understand the conflict of interest situations that may arise in the management of a joint venture in Bulgaria, as well as the challenges in the sector where activities are carried out.

We recommend specialized support to those who want to open a joint venture in Bulgaria. Our local representatives can take care of the formalities involved and guide you in this regard.

Doing business in Bulgaria

Bulgaria is among the business destinations appreciated by foreign investors looking for a stable business climate. There are many sectors of interest where they can carry out their activities, and among them, manufacturing, tourism, automotive, and logistics are generators of generous profits. And to get an idea of how the country’s economy behaves, we invite you to discover some statistical data, so that you can make a correct business decision in Bulgaria:

  • Around 3.9% was the economic growth recorded by Bulgaria in 2022.
  • A3 is the business climate index for Bulgaria.
  • The best export partner is Germany, with 15% of the total products going to this country.
  • The export of goods and services represents 70% of the GDP of Bulgaria.

Working with our local representatives

If you are interested in a joint venture or maybe a startup in Bulgaria, we recommend the services offered by our company. We specialize in company formation in Bulgaria and can offer the necessary support to those interested in doing business in this country. You also have the services of our accountants in Bulgaria at your fingertips to benefit from a good start on the market. We are here to help you set up a company in Bulgaria, regardless of the chosen business structure.

If you want to open a joint venture in Bulgaria, we kindly invite you to contact our team of company formation representatives in Bulgaria, who can also help you with the procedures of company incorporation in Bulgaria.