Incorporation of an entity is the legal process used to form a company. This process separates the firm’s assets and income from its investors or owners. Incorporation of an entity in Bulgaria has several benefits to the owner or investors, including access to favorable tax regulations, which is the best in Europe and among the most favorable in the world. In this article, we will provide a step by step process of Bulgaria company incorporation.
- Step 1: Choose a name for your company
The first step involved in the incorporation of an entity in Bulgaria is selecting a suitable name for your company. Once you have chosen a name for your company, you need to check with the relevant authority if it is still available. The name that you choose for your company is very important. You need to choose one that is unique and easy to remember. Once your name is confirmed, it will be featured in the memorandum of association of the company.
- Step 2: Preparation of memorandum of association
A memorandum of association is a legal document prepared during a limited liability company’s formation and registration process. It defines the object for which the company is formed and contains the company’s privileges and powers. It is usually treated as the company’s constitution and determines the relationship between the company, stakeholders, and outsiders. Memorandum of the association presents the internal rules that the company needs to abide by. In Bulgaria, a memorandum of association must be filed with the registrar of companies. Officials at the registrar of the company will provide all necessary documents that must be completed within a certain period. Once the form is completed and submitted to the registrar of companies, it will be vetted then approved or rejected. The verification process usually takes about a week. You will be notified once the process is complete.
- Step 3: Power of attorney
Power of attorney is a legal document that gives one person the power to act for another person. This process is important, especially for an offshore company (a company that operates outside its country of formation). A power of attorney will authorize the inclusion of a local director who will act on behalf of the company.
- Step 4: Payment of registration fees
A certain fee will be paid during the incorporation of a company. The fee varies because it is based on the minimal capital of the company.
FAQ:
How long does the incorporation of an entity in Bulgaria take?
The entire process of incorporation of an entity usually takes about two weeks to complete. The process can even be shorter if you seek the help of experts in Bulgaria. The Bulgarian government has made it simple for both local and foreign companies to operate in the country.
When will the company start operating?
The company is considered operating as of the date of registration. Once all the documents are vetted and verified, and the process of incorporating is complete, the company is considered operating from that moment.
What is the minimum share capital for limited liability companies in Bulgaria?
The minimum share capital for limited liability companies in Bulgaria is BGN 2.
What types of options are available in Bulgaria?
There are two types of limited liability companies available in Bulgaria. They include OOD and EOOD. The difference between these two types of limited liability companies lies in the number of shareholders incorporated into the company. OOD is incorporated and owned by two or more shareholders, while EOOD is incorporated and owned by a single shareholder.
What are the benefits of starting a limited liability company in Bulgaria?
Opening a limited liability company in Bulgaria is relatively simple compared to other countries in Europe. The entire process will take less than two weeks. However, the greatest benefit you will get when you open a limited labiality company in Bulgaria is favorable tax regulation, which is among the lowest in Europe.