Setting up a limited liability company in Bulgaria is a rather straightforward procedure. First thing to do is to choose the type of entity you want. A popular form in Bulgaria is the one called limited liability company (LLC) known as drujestvo s ogranichena otgovornost (OOD) in Bulgarian language.
Once you decide to set up a LLC in Bulgaria, firstly you have to choose a name that has to be unique and you need to check if it is available and issue the proven document. The managing body of the company needs an act of association as a result of the constituent meeting.
The number of the stakeholders is at least one. The company body of the Bulgarian OOD is made of a general meeting of stakeholders and a (minimum one) manager. The LLC must have a director to represent the company in front of authorities, but it is not mandatory for him to be a Bulgarian resident. For an efficient communication, the OOD company should have a registered office in Bulgaria and a bank account.
Next, the founder needs to put together the papers for the Registry Agency. They consist of:
- the application form,
- the name certificate,
- the signature specimen with the notary consent of the person who represents the company.
The authorized capital required for a LLC is 2 BGN (1 EUR) and the entrepreneur needs a bank document to state the deposit, attached to the file. The owners of the limited liability company must provide copies of identity documents. In case of legal entities setting up the company, legalized copies of the corporate documents are required. The Registry Agency accepts paper and electronic applications.
A court decision will acknowledge the main scope of the company and will include the articles of incorporation. The company receives a registration number and a taxation number. The National Social Security Institute provides the Bulstat number (a unique number) for which the company must apply along with the papers for the Commercial Registry. The Bulgarian law institutes penalties for delays.
In the process, the State Gazette publishes the Register entry, but it doesn’t mean that the set up of the company is complete.
A Bulgarian limited liability company is subject of the Corporate Income Tax Law and the rate is 10%. The 20% VAT is not mandatory for companies with an income under BGN 50,000. Another thing that is not compulsory for a LLC is the independent audit of annual accounts.
The LLC set up in Bulgaria is required to pay social security contributions. This can be done by filing an application at the Social Security Administration.
Our company formation agents can help you with more information about how you can set up a company in Bulgaria.