Company formation Bulgaria offers a number of financial and practical benefits. It is relatively cheap in comparison with the other EU and non-EU countries (a minimum required foundation capital amounts to only 1 euro). The incorporation process can be completed within a few days if you come physically to Bulgaria, and within weeks in case of company registration from abroad. The national tax system is one of the lowest in the whole EU with a flat profit tax rate of only 10% and small withholding taxes on dividends paid to non-resident shareholders of up to 5%.
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The preferred type of business entity in Bulgaria is a private limited liability company. This is similar to a LTD or LLC in the USA, or a GmbH or SA in Germany. This kind of company structure provides an extra level of protection for the personal assets of the owners. In the event that a claim is made against the company, the shareholders are only liable to lose up to the amount of their subscribed share capital. A single-member limited liability company is also possible which is known as EOOD and the one shareholder can be the sole manager of the business.
The actual procedure of incorporating a business in Bulgaria consists of submitting notarized foundation deeds, minutes of the meeting of incorporation and a bank certificate stating the share capital to the Trade Register. The company must be registered for VAT and obtain its tax identification number. After this the company can start operating.