Embark on Success: Navigating the Path to Establishing Your Company in Bulgaria
Are you planning to develop your company towards Eastern Europe? Due to its convenient location and good conditions for investors, the country with its capital in Sofia is gaining more and more popularity among entrepreneurs on our continent as well as in Asia, including: from China or Turkey. Business development in this area requires knowledge of the local specificity, legal regulations and the process of opening your own company in Bulgaria, which is why many entities decide to establish their branches here in cooperation with an external law firm.
Advantages of Bulgaria from the business point of view
The state offers many advantages for investors, creating a stable environment in which to operate, and the relatively fast pace of economic development allows one to expect the expected return on capital. In addition, Bulgarian business income tax is one of the lowest in the entire European Union, which is undoubtedly tempting. For this reason, small entities and even individual freelancers sometimes decide to set up a company in this country.
From the point of view of non-EU investors, e.g. from China or Turkey, it is important that launching a business in a country with its capital in Sofia opens access to the extensive EU market. Moreover, the markets of other Balkan countries are close. Other advantages include well-educated employees whose services are relatively cheap, as well as the rapidly growing IT and innovative technologies sector. All this means that setting up a company in Bulgaria can definitely be a good idea.
Establishing your own company in Bulgaria
The procedure for opening a business is quite easy and consists of several steps. The basis is choosing the appropriate legal form, finding a registered office and, possibly, depositing the required share capital. Then you need to register your company, obtain a tax identification number and register your business with the appropriate chamber of commerce. So you can see that from a formal perspective, a company in Bulgaria is a relatively simple matter. Despite this, many entrepreneurs decide to seek help in this area and contact specialized law firms such as ours.
Taxes:
- Corporate income tax - 10%
- VAT - 20%
- Personal income tax (employees) - 10%
- Withholding tax on dividends - 0% for EU entities, 5% for others