Opening a company in Bulgaria!? It’s easier than buying a Big Mac..

One of the greatest challenges that multinational corporations face when opening up administrative offices in foreign countries is embedded in the registration of their businesses in these markets. Notably, most countries across the globe have stringent policies that make registration and operation of foreign businesses in their market difficult. However,  Bulgaria has some of the most favorable policy guidelines for multinational companies that wish to set up administrative offices in their markets.

To begin with, it is essential to note that the Bulgarian corporate laws do not discriminate foreign firms. In line with this, a foreigner who registers a company in this market enjoys the same privileges and is subjected to the same corporate terms as that of locally-owned companies. Additionally, foreign firms in Bulgaria are subjected to the same regime and taxation as that of a company that is owned by Bulgarian citizens. This is unlike most countries, which discriminate foreign firms with respect to laws, policies, regulations and corporate terms.

Similarly, foreign firms need low capital to register a limited liability company in Bulgaria. In this case, it costs 2 BGN (approximately US$1.29) only to register a single member limited liability company or a limited partnership company, and it usually takes up to 2 weeks only to register the company. This is unlike markets such as the United Kingdom that have a standard company registration fee of £20 (approximately US$32.39). With respect to a minimum authorized capital for a Public Liability Company, a foreign firm needs BGN 50,000 (approximately US$32,250) only, as compared to the United Kingdom where such as company will need £50,000 (approximately US$80,981) as the minimum authorized capital.

Apart from favorable corporate laws, regulations, policies and terms, the cost of registering a company, and the minimum authorized capital, Bulgaria has a simplified process of registering companies for foreign businesses. Note that one can register a company in this market from another country without necessary coming to Bulgaria. This can be done through the power of attorney. Moreover, foreign companies that operate in Bulgaria do not need to become a member of any organization such as the chambers of traders since such membership is voluntary. In this case, a company can register as a member of these trade organizations based on whether its sees such membership as beneficial.

Finally, it is vital to note that Bulgaria has favorable regulations regarding the ownership of properties and operation of companies. Note that as individuals, foreigners face legal restrictions on buying land in this market. However, these restrictions do not apply to foreign firms. On the contrary, foreign firms can buy and own land in Bulgaria without any legal restrictions. With respect to company operations, the firm does not incur any cost after its registration unless it is operational. Likewise, a company operating in Bulgaria is not limited with respect to the way its uses its profits. Note that once a company has paid its 10% corporate tax and 5% dividend tax, the rest of the profits can be exported back to the home country legally without any restriction. This implies that a company can use the profits earned in Bulgaria to invest in other markets or projects outside the Bulgarian jurisdiction without restrictions.