Open a Subsidiary in Bulgaria

Introduction to setting up a Bulgarian subsidiary

Bulgaria is favourable to international businesses with a range of benefits available to encourage foreign investment through subsidiaries.

Bulgaria offers tax benefits – including the lowest tax rate in Europe – low business costs and risks, global banking facilities and a number of double tax treaties.

All of these aspects make the Bulgarian market hugely advantageous for establishing a subsidiary.

What are the main formalities of a Bulgarian subsidiary?

  • The minimum share capital required is €1
  • The Memorandum & Articles of Association of the subsidiary
  • The resolution of the parent company detailing its decision to form the subsidiary
  • Appointment of a manager of the subsidiary

The documents shown above must be filed with the Central Commercial Register at the Registry Agency of the Ministry of Justice in order to register the subsidiary.

All required documents must be officially notarised, apostilled and legalised in Bulgaria.

 

What are the accounting requirements of a Bulgarian subsidiary?

Bulgarian subsidiaries must comply with the double-entry accounting system, as stated in the Accountancy Act (ZS), which dictates the accounting requirements.

Subsidiaries, as with all traders in Bulgaria, are required to register for VAT if its annual turnover exceeds the threshold of 50,000 BGN (approx. €25,500). VAT returns should be filed monthly.

The accounts of the subsidiary, along with a statement of payments, should be submitted to the National Revenue Agency annually.

Please visit our partners Accountancy In Europe for further information on accountancy services and tax rates in Bulgaria.

 

Subsidiary Formation Packages

Forming a subsidiary in Bulgaria can be a daunting task when faced with unfamiliar regulations and complexities. We are accomplished in the subsidiary formation procedure and provide formation packages to manage the process on your behalf. The services included in this package comprise of registering the subsidiary with the Commercial Register and for VAT, among others. You can leave the entire process in our capable hands while you enjoy the many benefits Bulgaria has to offer.

 

For further information on Bulgarian subsidiaries please contact us using the form below.