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.

One of the most important advantages of electronisation of BULSTAT Register is that indication of BULSTAT code of NGO is sufficient to prove the registered circumstances towards the court, local and state authorities, organizations providing public services and banks. Furthermore, all BULSTAT cards issued until 01.05.2016 are now considered invalid document and NGOs are no longer obliged to identify with such card. This will save a lot of additional costs for reference documents, certificates, card, etc.

An application for registration of circumstances in the register can be submitted only by NGOs’ representative or authorized person with notarized power of attorney. An application should be submitted in 7-days (incl. non-working days) from the receipt of court decision for initial registration, re-registration or deletion of NGO.

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
Mandatory
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.

Order your shelf company now

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.

Jurisdictions with preferential tax regime (Offshore zones)

List of countries / territories, which are preferential tax jurisdictions:

  1. AI – Anguilla
  2. AG – Antigua and Barbuda
  3. AW – Aruba
  4. BB – Barbados
  5. BZ – Belize
  6. BM – Bermuda
  7. BN – Brunei Darussalam
  8. VG – Virgin Islands, British
  9. VI – Virgin Islands (U.S.)
  10. GD – Grenada
  11. GU – Guam
  12. GG – Guernsey
  13. JE – Jersey
  14. DO – Dominican Republic
  15. KY – Cayman Islands
  16. AD – Andorra
  17. MC – Monaco
  18. GY – Guyana
  19. CW – Curaçao
  20. LBU – Labuan
  21. MO – Macao
  22. MS – Montserrat
  23. WS – Samoa
  24. NU – Niue
  25. NC – New Caledonia
  26. AE – United Arab Emirates
  27. BS – Bahamas
  28. OM – Oman
  29. IM – Isle of Man
  30. CX – Christmas Island
  31. CK – Cook Islands
  32. PN – Pitcairn
  33. VU – Vanuatu
  34. LR – Liberia
  35. MU – Mauritius
  36. MV – Maldives
  37. MH – Marshall Islands
  38. NR – Nauru
  39. PW – Palau
  40. PA – Panama
  41. SC – Seychelles
  42. FJ – Fiji
  43. – Sark
  44. VC – Saint Vincent and the Grenadines
  45. LC – Saint Lucia
  46. Flag_of_Sint_Maarten.svg SX – Sint Maarten
  47. TC – Turks and Caicos Islands
  48. UY – Uruguay
  49. KN – Saint Kitts and Nevis
  50. HK – Hong Kong

 

Preferential tax jurisdictions are states/territories, which are not EU Member States and do not exchange information with the Republic of Bulgaria on administrative cooperation in the field of taxation and meet 2 of the following conditions:

a) there are no effective agreements for avoidance of double taxation between the Republic of Bulgaria and relevant state/territory;

b) there is an enforces agreement for avoidance of double taxation between the Republic of Bulgaria and the relevant state/territory but the relevant state/territory refuses or cannot exchange information upon request;

c) the due income or corporate tax or any corresponding taxes on the income that have been or are to be realized by the foreign person in the relevant state/territory are more than 60 percent lower than the income or corporate tax on the said income in the Republic of Bulgaria;

You can rely on us for preferential tax regime consulting, tax planning and offshore company formation.

Order your offshore company registration and bank account using our contact form.

Bulgarian Visa information guide

If you decide to travel to Bulgaria, kindly read our guide in order to acquire general information what is required.

At first, check whether a visa is required for your country.

Visa Regime for foreigners with ordinary passports for a short stay (until 90 days) – check the list.

Visa Regime for foreigners with diplomatic and service passports – check the list.

Visa types:

Visa A (for airport transit) – The airport transit visa entitles the foreigner to cross or to stay in the international transit zone of the airport in the case of a transit landing or of changing flights for the purpose of continuing travel to another state.

The following documents shall be submitted together with the application on applying for an airport transit visa:

  1. A regular foreign travel document;
  2. A photocopy of the pages the foreign travel document with the personal information and with the visas laid and/or a photocopy of the held permits for stay in the next states along the route;
  3. A recent colorful photograph (passport size);
  4. Flight booking

Before the airport transit visa is issued, the ticket and a copy thereof are presented.

Visa C (for a short stay for the purpose of transit or a planned stay) – A short-stay visa for the purposes of planned stay is issued to a foreigner who enters the country once, twice or multiple times for a total term of stay up to 90 days within each 6 months as of the date of the first entry.

The multiple short-stay visa may be with a validity term of up to twelve months or, as an exception – up to five years.

Conditions for issuance of multiple visa (any of the following):

  • business contacts with Bulgarian natural or legal persons;
  • family members of Bulgarian citizen or citizen of EU;
  • family members of foreigner residing permanently in Bulgaria;
  • driver of international road transport or a member of a crew of railway transport for passengers and goods;

Documents required:

  1. A regular foreign travel document;
  2. A photocopy of the pages of the foreign travel document with the personal information and the visas laid and/or a photocopy of the permits for stay possessed; 
  3. A recent colorful photograph – passport size;
  4. Documents substantiating the visa request as well as copies thereof;
  5. Proof of the possession of the required financial resources for subsistence amounting to a minimum of EUR 50 per day of the stay requested (at least EUR 500) or a document of prepaid tourist services;
  6. Documents certifying the possession of the required financial resources for accommodation or a document for prepaid accommodation in a tourist accommodation facility, or an invitation;
  7. Documents certifying the possession of the required financial resources to leave the country or a ticket;
  8. An insurance policy with a minimum amount of the cover EUR 30 000.

Invitation Declaration – by natural or legal person for private stay/ for business visit.

Substantiation of the purpose of the journey:

  • Private visit
  • Business visit
  • Cultural exchange
  • Sport
  • Medical treatment
  • Tourism

 

Visa D (for a long stay) – up to 6 months and a right to stay of up to 180 days.

Conditions for issuance of multiple visa (any of the following):

  • work
  • commercial activities
  • foreign specialists
  • parents of Bulgarian citizens
  • commercial representatives
  • medical treatment
  • mass-media correspondents/ journalists
  • pensioners/ retired persons
  • family members of Bulgarian residents
  • students
  • Settlement visa
  • Investment Incentive visa
  • dependants and family members of diplomatic, consulate officials or commercial representative
  • Trade visa
  • Non commercial activity visa
  • family members of the Bulgarian citizen

Visa D entitles the holder to multiple entries in the territory of Bulgaria within its validity term.

Visa application form – Download

Documents required:

  1. Visa application form
  2. A regular foreign travel document
  3. Copies of the pages of the foreign travel document with the personal information and the visas laid and/or copies of the permits for stay possessed
  4. Recent passport-size color photograph
  5. Original documents and two copies thereof substantiating the application for a long stay visa under the Foreigners in the Republic of Bulgaria Act and the Regulation on its implementation, and of the financial resources possessed for subsistence and accommodation.

In order to obtain long-stay permission the person must comply with additional conditions. The procedure has its own specifics and a good knowledge of the legal base is necessary. For that reason Global Consult Europe advises you to contact our experts.

 

Transport license in EU

Community license for international road haulage

Registration of transport company

How to get transport license in Bulgaria?

It is necessary to have a registered company (regardless of the legal form – LTD., JSC., etc.) and its scope of activity is specified for the carriage of goods against payment. Registration of company which carries out transport activity has its own peculiarities, therefore you can count on our qualified legal assistance in registration of transport company.

What documents are needed for Community license for international road haulage?

There are specific requirements for the head of the company’s activity:

Certificate of conviction of the person who manages the transport activity – should not be convicted or deprived of the right to exercise transport activity;

Certificate of professional competence, issued to the person who manages the transport activity – cannot manage more than two transport companies ;

Contract for the appointment of the person who manages the transport activity;

Regarding the company itself must be submitted:

Information for financial stability – it depends on how many vehicles will operate; For the first vehicle the company must have the equivalent in BGN of 9000 EUR and for each additional – the equivalent in BGN of 5000 EUR. Proof of financial stability can be achieved by deposition of the amount in the company’s capital, bank guarantee in Bulgarian bank or conclusion of insurance contract for a insured sum in the same amount.

Notification to the National Revenue Agency;

Declaration that the trader who applies for a license does not have an open procedure of bankruptcy;

Declaration of existence of own or leased garage area with exactly specified address in Bulgaria;

The license shall be issued within 30 days of submission of the documents.

The transport license is not unlimited, it is issued for a period of 5 years. Renewal is possible before the expiry date.

The transport company must comply with the requirements of the law not only when applying for a license but also during the entire period while exercising transportation. Companies which perform carriage of goods without required license shall be subject to large fines.

The requirements for obtaining a license should be carefully observed, therefore Global Consult Europe advises you to contact our team of professionals.