Bulgaria Company Formation

Bulgaria company formation is an attractive EU jurisdiction for entrepreneurs wishing to conduct business in Europe. The following information will help your Firm determine whether Bulgaria company formation is the optimum corporate structure to achieve your international business objectives:

Bulgaria has been a member of the European Union (EU) since January 2007. It is also a member of the United Nations and the World Trade Organization. Joining the EU has aided Bulgaria's trade deficit problem, the EU is the main supplier of consumer and investment goods to Bulgaria. By 2011, Bulgaria is expected to be part of the Schengen Area, thus reducing border controls between the other member countries and enhancing opportunities from forming a Bulgarian company.

Bulgarian company formation is subject to a corporation tax of just 10%. The personal income tax rate in Bulgaria is also a flat rate of 10%.

Bulgaria company formation (limited liability company) requires a minimum of one shareholder, who may be an individual or a company, and one director.

The Director is not required to be a resident of Bulgaria.

To support Bulgaria company formation, Bulgaria signed double taxation treaties with 64 countries, including France, Germany, India, Singapore, the UK and the US.

Sofia, the country's capital, is an attractive location for Bulgaria company formation. Sofia enjoys important rail links to other neighboring countries, including Greece, Romania and Turkey. Business Park Sofia is the largest office park in Southeastern Europe, and is designed to provide efficiency, flexibility, convenience and high-tech functions, making conducting business in Sofia attractive to entrepreneurs.

Bulgaria company formation (limited liability company) requires a minimum share capital of US$3,500 (5000 Leva).

Value Added Tax (VAT) in Bulgaria is 20%. VAT exemptions do exist, financial services are one example of such an exemption.

Bulgaria is ranked 50th easiest economy in the world to start a business in, according to the World Bank's Doing Business 2010 Survey. This represents a major improvement from the 2009 rank of 81.

The Bulgarian economy ranks 76 out of 133 countries in the World Economic Forum's Global Competitiveness Report 2009-2010, having a poorer rank than its neighboring countries, Greece and Croatia.

Bulgaria's currency (Leva) is pegged to the Euro, but is expected to adopt the Euro within 2-3 years.

Corruption is an issue to address when considering Bulgaria company formation. According to Transparency International's 2009 Corruptions Perceptions Index, Bulgaria is ranked 71st of the 180 jurisdictions included in the survey.