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 in 2021
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 in 2021:
- 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. The business-related aspects in Bulgaria in 2021 can be entirely explained by one of our agents who can also handle the registration formalities.
How do 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 submit the 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 first receive 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 in 2021
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
. If you would like to know more about how to open a branch in Bulgaria in 2021, let one or our agents take care of all the formalities, in respect with the local and international laws.
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 at any time.
6. Can I open more than just one branch in Bulgaria?
Yes, it is possible to open more than just one branch in Bulgaria, as the legislation allows so. The registration of another branch in Bulgaria is the same as the first one, without complications. One of our agents in Bulgaria can tell you more about how to open a new branch in this country.
7. Do non-EU investors need a visa for opening a branch in Bulgaria?
Yes, non-EU entrepreneurs who intend to do business in Bulgaria
must observe the immigration rules. In this case, one must apply for a short-stay visa for Bulgaria, in order to open a branch. We have a specialized team with experience in immigration matters, so talk to us at any time.
8. Can I have a virtual office instead of a traditional one for by branch in Bulgaria?
Yes, foreign and local entrepreneurs can decide on virtual offices instead of traditional ones for their businesses. A virtual office package in Bulgaria can be easily purchased if you send your inquiries to one of our agents.
9. What are the financial obligations of branches in Bulgaria?
Branches established in Bulgaria have the same financial obligations as the parent company. A series of documents must be submitted to the financial authorities in the country. Talk to our specialists and see how you can be helped.
10. Is a branch easy to open in Bulgaria?
Yes, if you respect the business and company formation conditions imposed, you can open a branch in Bulgaria without complications. Plus, you can benefit from the support of our company formation agents in Bulgaria with experience in this field.
Differences between branches and subsidiaries in Bulgaria
While branches are dependent on the parent company, have a local structure, and can be established without minimum share capital, subsidiaries
are independent, flexible, and can develop other activities besides the primary ones. There are also differences in terms of taxation because branches must pay taxes only on the incomes generated in Bulgaria, while subsidiaries are levied on the worldwide income. In both cases, the corporate income tax is set at a 10% rate. If you would like to know more about the features of branches and subsidiaries, in order to choose the right type of business, you can address your inquiries to our team of specialists in Bulgaria
Making investments in Bulgaria
Bulgaria benefits from a great geographic location that allows the business and free access to any kind of market. The flexible taxation, the macroeconomic stability, the skilled workforce, and the ease of doing business are among the key investment factors of Bulgaria that weigh much in front of international investors who want to expand their portfolios in this part of Europe. The investment fields in Bulgaria are quite representative and foreign entrepreneurs can generate profits in sectors like tourism, real estate, agriculture, IT, or manufacturing, to name a few. Having no complicated procedures for company formation in Bulgaria is another plus for foreigners in this country. Here are some interesting facts and figures about the economy and business in Bulgaria:
- • In terms of total FDIs, nearly USD 52 billion were registered in Bulgaria in 2019.
- • Bulgaria has one of the lowest corporate tax rates, established at 10%.
- • The 2020 Doing Business report ranked Bulgaria 61st out of 190 worldwide economies.
- • Most of the FDIs come from the Netherlands (17.3%), followed by Austria (9.6%), and Germany (6.8%).
Choosing our agents in Bulgaria
Even if the Bulgarian authorities concentrated more on the ways in which businesses can be easily incorporated, it is important to have the support of a dedicated team who can handle such aspects. Some might find the investment legislation quite difficult or relatively slightly different, so the assistance of a team of professionals is quite recommended. Our customers can rely on proficiency, transparency, experience, and professionalism when collaborating with our dedicated team of company formation agents in Bulgaria. The connection is made in the first place, in order to establish the priorities and business targets and act in this direction. Foreign and local entrepreneurs can request a call back, a free case evaluation, or can send us an email if they want to know more about how to open a branch in Bulgaria.
If you believe it is time to invest in Bulgaria
, feel free to discuss the business-related aspects with one of our specialists in company formation. Contact us