5 reasons to trust the professional company registration

The creation of a business company or even a sole trader is an activity that is important to be done by the rules, because the appearance of a newly created business depends on it. Many people believe that they can successfully pass the administrative and bureaucratic procedures, with the intention to save the fee that would have paid the specialist performing the registration of companies. Not long after, the majority of these people find themselves so entangled in red tape that ultimately again recourse to expert, which is a waste of time and money.

If you want to avoid the bitter experience and start as soon as possible your business activity it is important to select a team to take on the entire burden of cumbersome procedure. During this time, you can focus to the activity, corresponding to your competence, laying the foundation for a successful and prestigious business.

5 reasons to trust the professional registration of companies

The reasons to trust the professionals are many, but here we will suggest only 5, we believe that their significance is greatest. Most of us don’t soberly judge the situation until we understand from experience how great is the difficulty to fight the bureaucracy not having the necessary competence and experience. Here are the main reasons ordered but not prioritized.

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How to start a beauty salon in Bulgaria

How to open a beauty salon/ hair salon/ beauty parlor in a few easy steps?

  1. Company registration, by which you can do business in Bulgaria.
  2. Tax registration – voluntary under Art. 96 of VAT Act.
  3. Purchase and registration of cash register (fiscal device).
  4. Ensure a suitable object in which the activity will be performed – it can be hired (lease contract is required) or private property (title deed is required).
  5. The purpose of the property should be for business activity, in this context a change of status of the property may be indispensable.
  6. Certificate of commissioning.
  7. Observed requirements on fire safety of commercial property – a permit issued by General Directorate Fire Safety and Protection of Population.
  8. A notification for opening an object of public designation to the relevant regional health inspectorate and obtaining a certificate of registration after verification.
  9. Possession of master certificate and registration pursuant to Skilled Crafts Act.
  10. Preparation of internal rules and operation instructions.
  11. Registration of working time of stationery commercial site – it is done in the relevant municipality.

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Announcement of annual financial report

What is an annual financial report?

The annual report gathers full information about the financial position of the company. It includes statement for revenues and expenses, balance sheet, statement for share capital and cash flow statement

The financial report is drawn up for one financial year , coinciding with the calendar year – from January 1st to December 31st. E.g: If you have a company created on 01.12.2015, you need to submit a report on the activity carried out in 2015 – in this case only one month.

Who is obliged to announce the annual financial report?

All the traders according to the Bulgarian Commerce Act, this includes Limited Liability Companies (Ltd.), Limited Partnerships, General Partnerships, Joint Stock Companies.

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New rules for registration of NGOs in BULSTAT Register

New rules for registration of non-profit organizations (NGOs) in BULSTAT Register came into force on 01.05.2016.

The register now functions as centralized electronic registry which implements registration and issuance of reports and certificates of recorded circumstances. Thus any foundation, association, trade union organization or community center will have its own electronic file, similar to the Commercial Register.

The representatives of NGOs will have the opportunity to use automated electronic services of BULSTAT Register – to submit electronic documents and make electronic references.

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What is an EORI number?

EORI number is used to identify legal persons and individuals based in the European Union, as well as those outside the EU, when performing customs activities in the EU.

With effect from 01.07.2009, for all economic operators in their interaction with the customs administration of a Member State of the European Community, it is necessary to have an unique identification number EORI (acronym for Economic Operator Registration and Identification). In this relation all companies and individuals sending and receiving packages/consignments need to obtain EORI number from the relevant customs office.

Some cases for which EORI number is required

Import Export Transit
Consignor / Exporter Non mandatory Mandatory
EORI number or single (Ad-hoc) number
Non mandatory
Consignee Mandatory
EORI number or single (Ad-hoc) number
Non mandatory Non mandatory
Declarer / Representative Mandatory
EORI number or single (Ad-hoc) number
EORI number or single (Ad-hoc) number
A person responsible Mandatory
EORI number

EORI registration should be made in the relevant territorial customs office of individual’s residence or company’s registered office.

Advantages of a shelf company

Shelf company (also called “ready made company”) is a denotation for a company which is registered in Commercial Register and has never conducted business activity. This kind of companies do not have any obligations, assets or liabilities.

Should I buy a shelf company?

It is a smart decision if you are applying for a project and there is a requirement the company to be registered at least 6 month ago – quite common in applying for EU grants/funding.

Ready made companies with VAT registration

The purchase of VAT company saves you a lot of time, you do not have to wait 1-2 days for the registration of company and additional 14 days for VAT registration. The client receives fully registered company ready for work.

During the transfer of the shelf company to the new owner all company details can be changed:

  • company name
  • registered office and address (mandatory to be in Bulgaria)
  • scope of activity
  • director/manager of the company

Thereby the company is being tailored according to customer preferences.

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Types of business in Bulgaria

The types of business organizations, most often used in Bulgaria are Limited Liability Company (LTD/LLC), Joint Stock Company (JSC), branch and trade representation.

  1. Limited Liability Company (LLC/LTD)

It is the business type most popular among investors and entrepreneurs because of the minimum capital requirements, simplified structure and management. LLC can be established by one or more persons – individuals and/or legal entities. Shareholders in LLC may be Bulgarian and/or foreign individuals and/or legal entities.

The minimum share capital of Bulgarian LTD is 2 BGN (two Bulgarian Leva), which is equal to approximately 1 EUR (1 Euro).

The company shares may be transferred by a notarized contract for transfer of shares. Transfer of shares is possible between shareholders or to a third party.

The company is governed by a Manager. This position may be occupied by one or more persons. Only a natural person may be appointed as a manager of LTD. The manager can be a shareholder or a third person and there are no restrictions for his/her nationality.

  1. Joint Stock Company (JSC)

JSC is another widely used type of business organization and startup. The most intriguing for investors are the lack of legal restrictions on the transfer of shares and the lack of personal commitment of shareholders in the company activity. This type of company could be founded by one or more Bulgarian and/or foreign individuals and/or legal entities.

The minimum registered capital for registration and operation of JSC is 50 000 BGN (fifty thousand Bulgarian Leva), which is equal to approximately 26 000 EUR (twenty six thousand Euro). For certain types of activities, such as banking or insurance activities, a higher minimum capital is required. At the moment of company formation at least 25 % of the value of each share must be paid. This means that the minimum for starting the company registration is 12 500 BGN, as the remainder of total capital (37 500 BGN) shall be paid within two years.

The company is governed by Board of Directors (in one-tier system) or by Supervisory Board and Management Board (in two-tier system). It is required at least 3 persons to participate in the governing body.

Shares of a joint stock company are tradable instruments. The shares may be:

  • registered shares or bearer shares;
  • common shares or preferred shares;
  • stock shares or dematerialized shares;

The transfer of registered shares must be recorded in the book of registered shareholders of JSC. In most cases, the acquisitions of shares by new shareholders doesn’t meet with special difficulties.

  1. Branch

Opening a branch is one of the ways for the realization of business operations of a foreign company in Bulgaria. Foreign companies registered as traders in the country where they are established are able to organize their business in Bulgaria by registration of branch of a foreign trader.

Branch of a foreign trader is being created with registration in the Commercial Register. After its formation, according to Bulgarian legislation, the branch of a foreign company is not an independent legal entity but it has a certain degree of independence from the parent company. There is a requirement for the branch to have independent accounting and to draw up separate balance sheet. Assets and liabilities of the branch are considered as assets and liabilities of the parent company.

The branch is governed by a Manager. Regarding the taxes, as place of business (a permanent establishment) of the branch of foreign company shall be considered Bulgaria. For tax purposes the foreign parent company will be liable to corporate tax on profits from the activity of the branch in Bulgaria.

  1. Trade representative office (TRO)

A foreign person or legal entity may register a trade representative in Bulgaria, provided that it is entitled to conduct business under the national law of its home country. Trade representative office (commercial representation) is being registered in the Bulgarian Chamber of Commerce and Industry.

TRO is not a separate legal entity and cannot carry out business activity. Thus, commercial representation aims to carry out activities such as promotions, exhibitions, demonstrations, training or advertising of products and services. Therefore, in general TRO does not generate any income and it is not a subject to corporate tax in Bulgaria.

If TRO is involved in business activities in the country it can be classified as “a permanent establishment” for the purposes of taxation and the foreign parent company will be liable to corporate tax on profits in Bulgaria made as a result of business activity of the TRO.