How to start a business in Bulgaria as a foreigner

Bulgaria is a very attractive country for anyone interested in setting up a company, with direct access to the European Union, an effective tax system with lower rates compared to other EU countries, an educated and multilingual workforce that is cheaper, and excellent options in a very positive business environment supported by the government.

There are very interesting reasons for a business to settle in Bulgaria. As a foreigner, registering a company in Bulgaria may be a great option and a wise decision to increase company profits and reduce costs. 

It is recommended to engage the services of a reputable accounting company that will handle your reports, and tax consultancy and can advise on company formation and what option may be best suited to your business. Accountancy Bulgaria is without a doubt, the best choice. Not only do they have many years of experience in the financial world, but they also tailor their services to the particular accounting needs of your business. 

Starting a business in Bulgaria

Setting up a business in Bulgaria is a pretty straightforward process. With the necessary legal aid, it can take just a few days and there are many benefits for companies considering settling in Bulgaria. 

Requirements to start a business in Bulgaria as a foreigner

The first step when starting a business in Bulgaria as a foreigner is to decide what type of company is best suited for your business. Options range from Sole Proprietor, Sole Proprietor with Limited Liability (commonly known as EOOD), Limited Liability Company (LLC) and Variable Capital Company (with the abbreviation LDC), among other options. 

Choosing the right company structure for your business is a must. This will depend on the size and type of the business, the legal responsibility, and the form of management. 

It is recommended that all documents for company consolidation and registration are overseen by experts to avoid issues that may delay the business registration process. If the company needs to have a VAT number, it must also be registered with the National Revenue Agency (NRA).

At this point, it’s vital for a company to count on quality guidance from an accounting firm that can offer the necessary support to comply with tax regulations, meet reports’ deadlines, and deal with the daily bookkeeping needs of your business. Accountancy Bulgaria can offer its expertise and be allies in the path to success.

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Visa requirements for foreigners who want to start a business in Bulgaria

For EU citizens obtaining a residency permit is a little bit easier, as Bulgaria is part of the EU. Non-EU citizens must apply for the appropriate visa permit to enter and operate a business within Bulgaria. The most common visa types are the short-stay visa, also known as type C, and the long-stay visa, also called type D.

For each visa, the requirements are a bit different. In the case of short-stay visa type C, it requires a business invitation and allows for a 90-day stay within a period of 6 months. This type of visa is suitable for limited companies or branches. 

For the long-stay visa, or type D, the requirements may vary depending on the type of company, the fact that said business will employ local workers, etc. Suited for trade representatives, Bulgarian companies, or branches, this visa is the most common choice for foreigners looking into starting a business in Bulgaria.

READ ALSO: How to move your company to Bulgaria

Benefits of starting a business in Bulgaria as a foreigner 

The list of advantages of starting a business as a foreigner is long and interesting. First of all, we cannot fail to mention the 10% flat tax rate on corporate income. This makes Bulgaria one of the countries with the most competitive tax rate and therefore an attractive destination for companies looking to settle somewhere where they can reduce costs and maximize their earnings.

But there are many other aspects that a foreigner starting a company in Bulgaria may want to take into consideration too.

• Double taxation treaties with over 70 countries.
• A low dividend tax rate of 5%.
• A positive, vibrant, and rather stable business environment.
• Facilities and incentives for companies settling in Bulgaria that may invest in real estate or hire the local workforce. 

• A more affordable workforce that is educated and often multilingual.
• Lower social security contributions.
• Life is cheaper overall, especially compared to the rest of Europe or the U.S.

Conclusion

Starting a business in Bulgaria as a foreigner is possible and comes with a variety of benefits. 

Keep in mind that in order to comply with all the requirements and tax obligations it is a must to count on the services of a serious and reliable accountant in Bulgaria, and we can only recommend Accountancy Bulgaria, with their excellent customer service and expertise in the field.