CONDITIONS FOR DOING BUSINESS IN BULGARIA

Each country opens up different business opportunities for citizens. For some, this is a simplified business registration system, for others, tax benefits or other privileges. If we consider such a country as Bulgaria, then some associate it, first of all, with recreation, while others consider it precisely as an opportunity to create a successful business.

It should be noted that in order to register a business in Bulgaria, one must be guided by the Law on Foreigners in Bulgaria. This legislative act explains all the nuances of the rights and obligations of foreigners in Bulgaria, as well as the procedure for registering and doing business. What is important is that from the moment of registering a business in Bulgaria, a foreign citizen automatically falls under the tax resident of Bulgaria.

Business Forms

Forms of doing business in Bulgaria can be conditionally divided into two categories - legal entities and individual entrepreneurs. As for the latter, individual entrepreneurs are analogous to Ukrainian FLPs. This organizational and legal form is suitable primarily for small businesses and for individuals who independently carry out their activities.

Regarding legal entities, it should be noted that they can be registered as LLC or JSC, in such a situation the legal form depends on the number of founders of the legal entity and its authorized capital.

Registration procedure

Registering a business in Bulgaria is not a difficult procedure. First, an application is submitted to a specialized registration authority. The application must indicate the legal address of the company and its name. Based on the submitted application, the process of registration in the commercial register of Bulgaria begins, depending on the district where the company will operate. The company is considered registered from the moment of publication in the state newspaper. After the publication of information in the newspaper, registration is carried out with the tax service and the pension fund.

Taxes

As in any other country, in order for a business to be successful and have the opportunity to develop, you need to understand the scope of the taxation of a particular country. As for Bulgaria, the business is taxed in this way:

• Income tax - 15%. This is relatively one of the lowest income tax rates.
• Dividends - 7% of the amount of dividends paid.
• VAT - 20%, but is paid only in case of a turnover of more than 50 thousand leva.

Features for foreigners

Foreign citizens doing business in Bulgaria carry out all their relations with the Bulgarian authorities through a Bulgarian citizen who has the appropriate accreditation. Independent relations of a foreigner with the state are not carried out.

So, as can be seen from the above, in Bulgaria there are quite favorable conditions for doing business, the registration procedure is not complicated, taxes are not high enough compared to other countries.

But do not forget that when registering a business in Bulgaria, you need to familiarize yourself in detail with the legislation of this country in a particular field of activity, because there may be certain prohibitions or restrictions for a particular area. Therefore, before choosing a country for doing business, you need to find out all the details and only then make a decision.