Republic of Bulgaria

The Republic of Bulgaria joined the European Union in 2007 and offers plenty of investing opportunities in various fields. The attractive 10% corporate income tax rate belongs to the lowest in Europe. Bulgaria has signed more than 65 Double Tax Treaties.

The official language is Bulgarian and the currency remains Leva (BGN). Among other types of corporations, the following corporate legal entities are commonly set up in Bulgaria, e.g. Družestvo s Ograničena Otgovornost (ООД / OOD / s.r.o.), Ednolično družestvo s Ograničena Otgovornost (ЕООД / EOOD / s.r.o.), Actionerno družestvo (АД / AD / a.s.). The mostly used type is OOD.

Legal formDružestvo s Ograničena Otgovornost (ООД / OOD / s.r.o.)
LegislationBased on Civil law
Foundation timeOnce received all required documents from a client, the incorporation of the new OOD takes usually 10 working days and documents are delivered within 4 weeks.
ShareholdersMinimum required: 1
Form: physical person/corporate body (both possible)
Nationality: Any (Bulgarian nationality not necessary)
DirectorsMinimum directors required: 1
Form: both physical person and corporate body possible
Nationality: Any (Bulgarian nationality not necessary)
Share capital2 BGN
Bearer sharesNot Allowed
TaxesCorporate income tax rate: 10%
Withholding tax: payment of dividends taxed at 5% rate, interests and royalties are taxed at 10% (rates can be reduced thanks to the use of DDTs),
VAT: Registration obligatory when the taxable income in previous 12 months exceeds 50,000 BGN (approx. 25,500 EUR) basic rate: 20 %.
Others: Extensive network of Double Tax Treaties
AccountancyFiling of accounts required
AuditAudit is obligatory if 2 out of 3 following conditions are met: assets value more than 1,500,000 BGN, turnover more than 2,500,000 BGN, more than 50 full time employees.
Anonymity and confidentialityThe companies register is publicly accessible
OtherShelf companies availability: YES
Registered office: Must be maintained in Bulgaria

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