All you need to know about Bulgaria Ltd

Bulgaria is one of the most attractive destinations in Europe for companies that may be looking for ways to increase their profits while reducing their costs. Mainly, it is the tax scheme that appeals to businessmen and entrepreneurs. 

In fact, corporate tax is a flat rate of 10% on the company income minus deductions for corporate costs.  While this is usually the first thing that comes to mind when recommending setting up a Bulgaria Ltd, there are many other advantages including lower social contributions, a cheaper and highly trained workforce, and certain incentives the government offers to companies under specific circumstances.  

When talking about Bulgaria Ltd, how easy it is to deal with company registration in Bulgaria?

Simpler than it may seem.

However, to make sure that your company fully takes advantage of the financial and business atmosphere in the country, we recommend engaging the services of a reputable accountant in Bulgaria, like Accountancy Bulgaria.

A key decision that will set your company on the path of success, Accountancy Bulgaria will take care of your company’s bookkeeping, tax reports, and payroll, as well as advise you on company registration and tailor accounting solutions to the particular needs of your business.

What is Bulgaria Ltd?

There are diverse types of companies in Bulgaria. Determining which one is best suited for your business is a must at the time of incorporation. 

One of the most common company structures is Bulgaria Ltd, locally known as EOOD. 

But, what is an EOOD? In Bulgarian, this means Sole Limited Liability Company. This type of company has one proprietor who has limited financial responsibility, meaning personal assets are not liable to company debt.

READ ALSO: Accountancy in Sofia – Bulgaria

What is the difference between Bulgaria Ltd and EOOD?

A Bulgaria Ltd and an EOOD are actually both the same thing. 

Requirements to open a Bulgaria Ltd

The following are the requirements to open a Bulgaria Ltd or EOOD:

• EOOD application
• Incorporation act of the company
• EOOD organization and business plan
• Legal valid consent
• Bank account statement proving capital for the EOOD

Other documents may be necessary to set up the company.

Who can form a Bulgaria Eood?

If you are wondering if foreigners can open a company in Bulgaria, the answer is yes. 

In fact, anyone can open a company in Bulgaria, without restrictions to foreigners. 

Bulgaria has no restrictions regarding the citizenship or residency of directors of a company registered in Bulgaria, which has made this country a perfect destination for companies looking to maximize their profits by benefiting from the tax scheme while remaining within Europe.

In order to register a Bulgaria Ltd, the proprietor must have a registered address in Bulgaria and open a corporate bank account in a Bulgarian bank.

READ ALSO: Personal income tax in Bulgaria: a definite guide

Benefits of an EOOD in Bulgaria

There are many benefits to setting up a Bulgaria Ltd. While a straightforward tax system is the main attraction, businesses in Bulgaria may also consider the advantages that include a low share capital, low tax rates, lower VAT, low social security costs, and an educated, experienced, and cheaper workforce.

Conclusion

A Bulgaria Ltd, locally known as EOOD, is a type of company that has one single proprietor and limited liability. 

Opening a company in Bulgaria is a straightforward process and takes only a few days with all the required documentation.

Engaging the services of an accounting company like Accountancy Bulgaria is a must to achieve the success entrepreneurs are looking for. Start with a free consultation, their financial advise and tax consultancy services will prove vital for your Bulgaria Ltd.