In Bulgaria, the registration of branches
is regulated by the Law on Promotion of Investments. Certain regulations that a branch must follow are also included in the Bulgarian Commercial Law. Without being considered a legal entity, a branch opened in Bulgaria
has certain advantages, for example it doesn’t require a minimum share capital at registration, doesn’t have a minimum number of members requested and the nationality of the representative doesn’t need to be Bulgarian. For information and support about branches in Bulgaria
, we recommend you talk to our team of company formation agents in Bulgaria
How to register a branch in Bulgaria
A branch opened in Bulgaria must be registered in the Commercial Registry of the Registry Agency before starting any type of activity. The registration must be performed by the foreign company’s representative or by an appointed lawyer, vested with power of attorney. Here are a few requirements to consider at the time you want to open a branch in Bulgaria:
- After opening a bank account, certain documents must be prepared by the foreign parent company for registration.
- The Articles of Association and the Memorandum of Association must be elaborated in Bulgarian, if not it must be followed by an authorized Bulgarian translation.
- The certificate of registration of the foreign company is necessary and also
- The decision of opening a branch, the decision of appointing the representative, the registered office address,
- The certificate of good stand regarding the foreign company’s activities, the previous year’s balance sheet are needed at the time of branch registration.
It is important to know that the above-mentioned documents must be legalized before being drafted at the Bulgarian Chamber of Commerce and Industry.
How to I register for VAT?
After receiving the registration number, the branch must apply and register for the VAT number at the Bulgarian National Revenue Agency. The Bulgarian branch may begin its commercial activities after taking the above steps.
Taxation of a Bulgarian branch
A branch must pay the same taxes as the local companies and must elaborate and deposit financial accounts every year. The VAT returns must be submitted every month.
The less attractive parts of owning branches in Bulgaria is that the liability for their actions is owned by the parent company. Moreover, the representatives are liable for the branch’s tax debts, and the balance sheet of the parent company must be registered at the Bulgarian Ministry of Justice, having the same fiscal obligation like the parent company or any Bulgarian company. Any public act of the branch must receive firstly the authorization of the foreign company and the banks and the clients trust more the parent company and do business with it than with its branches.
Office facilities for branches in Bulgaria
Branches in Bulgaria
can be established with a traditional office or can activate with the help of virtual office services available for purchase, if you get in touch with our team of company formation representatives in Bulgaria
. There are many entrepreneurs who would rather simply the requirements and formalities for establishing a company in this country, and instead they want to buy virtual office services
comprising a notable business address in Sofia or in any important city in Bulgaria. It is important to know that virtual office packages are at a fraction of costs compared to the expenses of traditional companies in Bulgaria. We remind that our team of consultants is at your disposal if you would like to open a branch in Bulgaria
and can provide you with complete support and information about the registration process for such entity.
What are the features of branches in Bulgaria?
Investors can benefit from an important advantage when it comes to branches in Bulgaria and that refers to no requirements regarding the minimum share capital. Registering a branch in Bulgaria will need a local representative, alongside important documents like the Articles of Association and the Memorandum of Association.
Requirements for non-EU investors in Bulgaria
Establishing a branch in Bulgaria
as a foreign investor from non-EU countries is subject to varied conditions, and among these, the application for a short-stay visa in Bulgaria. It is important to know that opening a branch
as a business person from countries outside EU does not involve the hiring of local staff for such company. The invitation letter and all the documentation for Bulgarian visas for entrepreneurs can be prepared with the help of our team of company formation agents in Bulgaria
. Some rules apply to foreigners from countries outside EU, therefore, it is recommended to receive the support and the guidance of a specialized team in company formation in Bulgaria
Can I establish more than just one branch in Bulgaria?
Yes, you can open multiple branches in Bulgaria and develop your business presence on the Bulgarian market as much as possible. Tax benefits and a series of advantages are linked to the branches in Bulgaria.
Who can set up branches in Bulgaria?
Local and foreign investors can decide on opening branches in Bulgaria, as long as they respect the legislation of companies in this country. We remind that investors from non-EU country will have to consider additional rules, mostly related to business visa and the entrance in Bulgaria.
FAQ about branches in Bulgaria
1. Do I need to deposit a minimum share capital for a branch?
No, there is no requirement regarding the minimum share capital for branches in Bulgaria
. A branch in Bulgaria
can run under the rules of limited liability company
, the most suitable business structure available in Bulgaria
2. Do I need a local representative for a branch in Bulgaria?
Yes, a local representative is needed for a branch in Bulgaria. He or she will have to represent the company from a legal point of view and take care of important aspects and activities in the firm. For more information about opening a branch in Bulgaria, you may contact our company incorporation representatives in Bulgaria.
3. Do I need to register the branch for tax purposes in Bulgaria?
Yes, the registration to tax purposes is a mandatory request for any kind of business in Bulgaria
, including for branches. The corporate income tax and the VAT are two important taxes to pay attention to when opening a branch in Bulgaria. We remind that the Bulgarian National Revenue Agency is the authority in charge of VAT registration for branches in Bulgaria
4. What are the accounting requirements for branches in Bulgaria?
The financial accounts and the VAT returns, plus the balance sheets need to be deposited on a monthly and yearly basis respectively. There are different fiscal obligations which can be taken care of by an accounting firm in Bulgaria. Let us remind you, that such services can be provided by our local team of accountants if you do not want to establish an accounting department in your firm.
5. How long does it take to register a branch in Bulgaria?
It doesn’t take long to set up a branch in Bulgaria
, if all the documents are correctly drafted and submitted. It takes approximately two weeks to establish such a business in Bulgaria
, but for complete support and a speed-up process, feel free to talk to our team of consultants in Bulgaria
and contact us
at any time.