Need a Shelf Company in Bulgaria? Here all needed Information

shelf company Bulgaria

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Interested in starting to invest in Bulgaria? Are you looking into company registration in Bulgaria? This is the right time to open a company in Bulgaria, no doubt about that. Bulgaria has established itself as a tax haven in Europe, with an attractive business environment and the famous 10% flat tax rate for income and corporate profit.

But… how does it work? Well… the first step is to move to Bulgaria, at least for a minimum of 183 days a year to obtain residency and qualify as a taxpayer in the country.

Clearly, this may result in a discouraging situation, as until 2023 foreigners could open a company regardless of their nationality, and while that’s still true, it’s not possible anymore to use the power of attorney to do so. Business owners must be present for the company registration. 

So, how do you start a company in Bulgaria without so much hassle?

The answer is a shelf company!

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What is a shelf company?

A shelf company is a business that has already been registered, all steps have been completed and it has even got a VAT registered number

A shelf company, or shelf corporation, is a business that was created and registered but put “on the shelf”, meaning that it was left with no activity, creating no costs but ready to work. This type of company can be sold to those that are looking to start a business without having to go through all the procedures and requirements of the Bulgarian company register. 

So, instead of registering a company in Bulgaria from scratch, some are opting now for this option. Buying a shelf company, saving money and time, and making it possible to become a Bulgarian business owner without necessarily even being in the country.

There is no risk for shelf company buyers as these companies, while already registered and made, or maybe even “aged”, carry no debt and they are ready to start operating according to the country’s legislation.

An important note is that shelf company buyers should consider engaging a reliable, experienced and multilingual accountancy company in Bulgaria, like Accountancy Bulgaria, in order to make sure their shelf company complies with the government legislation regarding taxes, VAT, and monthly or yearly reports. 

Apart from the necessary bookkeeping, the experts at Accountancy Bulgarian can act as financial advisor and Tax advisor in Bulgaria, among other consultancy tasks. A service like this will guarantee the success new investors in Bulgaria are aiming towards. 

Who needs a shelf company in Bulgaria?

Anyone interested in starting a business in Bulgaria, but unable or unwilling to go through the necessary procedures for company formation Bulgaria may be interested in a shelf company. 

The process of buying an already-made company, a shelf corporation, it’s a lot faster and less tedious than Bulgarian company registration. The main benefits are the fact that to open a Bulgarian company, while foreigners can do it, they need to have residency in this country. For non-European citizens this may prove a bit of an administrative challenge at first, while it’s very doable, it takes time and the commitment of staying in Bulgaria for an extended period of time.

There are many reasons to opt for buying a shelf company:

  • Save time and money avoiding the steps necessary to register a new company in Bulgaria.
  • Show a longer presence in business, assuring a stronger presence and reliability within the customer base. 
  • To be able to bid for contracts, regardless of the time in business requirements.
  • To be able to own a company without necessarily being a resident in the country or even being present at the time of the purchase.
  • It’s an easy and trouble-free way to start making business in Bulgaria. 

All you need to know about shelf companies in Bulgaria

As we have mentioned, a shelf company in Bulgaria is a registered company with a VAT number, a certificate of incorporation, and all the required steps to have it working as soon as desired. 

A shelf company is of limited liability and has a bank account, a legal address, and a trading name. Shelf companies are also designed to allow for a change in the directorial board, as well as with the possibility of modifying the main activities it engages in. 

How to buy a shelf company in Bulgaria

The process of buying a shelf company in Bulgaria is rather simple, fast, and straightforward.

An interesting benefit within the Bulgarian legislation is that once the new owner completes the process of buying a shelf company, they can change the name of the business, a process done with a notary. This makes it very flexible (and quite attractive) for new investors to look into shelf companies instead of registering a new one from scratch.

Local and foreign investors can buy a shelf company in Bulgaria. Interestingly, foreigners don’t even have to be in Bulgaria for the process to occur, as they can choose to have a legal team of lawyers and consultants that can deal with all the steps of this process and make it fast and pain-free.

The process of buying a shelf company in Bulgaria is also rather fast, and once it’s on the new owner’s name, activities can start immediately if desired. 

Benefits of a shelf company in Bulgaria

The main benefits can be listed as follows:

  • A shelf company can start running as soon as the change of ownership is complete;
  • All details can be changed quite easily (including name, address, etc.);
  • Shelf companies have no debt, so buyers do not inherit any liabilities.

There are many more advantages to shelf companies, some more specific to certain commercial activities, but in any case, this is a great alternative to registering a company in Bulgaria from zero, especially for foreigners that may not be willing to get a Bulgarian residency permit. 

There is no doubt that buying a shelf company can save a lot of time and money for investors that are hoping to start expanding in the country and taking advantage of the many benefits that Bulgaria, a tax haven country in Europe, has to offer to new businesses. 

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