ENTREPRENEURSHIP

INTRODUCTION

Bulgaria has undergone a significant transformation over the past three decades. It has changed from a highly centralized, planned economy to an open, market-based, upper-middle-income economy securely anchored in the European Union (EU).

How To Register A Company In Bulgaria?

Many expats come to Bulgaria with the idea to start a new business or move the one that they have in their home country and take advantage of the favorable tax (10% corporate tax) and business climate for a Bulgarian company formation.

Bulgaria has a simplified process of registering companies for foreign businesses. Note that you can register a company here from another country without necessarily coming to Bulgaria. This can be done through the power of attorney.

Company formation in Bulgaria

It’s important to note that foreigners face legal restrictions on buying land in Bulgaria. However, these restrictions do not apply to foreign firms. On the contrary, foreign firms can buy and own land in Bulgaria without any legal restrictions. With respect to company operations, the firm does not incur any cost after its registration unless it is operational.

Before you start the registration procedure you will need to think about these requirements:

Your company must have an address in Bulgaria;

Your company needs to have initial company capital which has to be deposited in a local bank;

You must choose a name and scope of activity for your company.

Very important: Choose your Legal Business Form

There are several options that can be chosen as the most common of them are, this decision will affect the way you do business, and how you can operate your company, your company liability:

• “Single person Limited Liability Company ” (EOOD) – an entity with one single owner with limited responsibility
• “Private Limited Liability Company” (OOD)– owned by two or more partners with limited responsibility
• “Sole Owner” (ET) – a simplified entity form which is appropriate for very small ventures (full owner’s responsibility)
• “Freelance” – a personalized individual registration
• “Public Limited Company” (AD) – joint-stock company – a commercial company with share capital owned by its members
• “Branch in Bulgaria” – Foreign legal entities registered abroad can register a branch in Bulgaria

Step 1: Name of the Company

You must pick a name of the company which will identify your venture on the market as well as before government institutions. Certain name parameters must be taken into account. The name itself could be chosen and occupied prior to the entire registration process (the latter is not compulsory but could represent a useful move in some cases).

Step 2: Escrow Bank Account Registration

You will be required to register a special escrow account in some Bulgarian bank for the purposes of the entity’s equity and legal registration. The initial bank account registration is a mandatory step according to the Bulgarian rules and regulations.

Step 3: Business Address Registration

The address registration is the next mandatory step in the process of your company’s setup. Your company will need to have a Bulgarian address.

Step 4: Registration in the Government Official Register

According to Bulgarian laws, every new business venture must be registered in the publicly available Official Commercial Register.

Step 5: Stamp Registration

Each newly registered business venture need an official stamp that can be used for endorsement of its formal activities. Despite being an additional after-registration step, the stamp registration has basically an obligatory function for the business set up in Bulgaria.

The procedure for registration of a company in Bulgaria does not differ when local or foreign persons are part or owners of the company. Under Bulgarian law there are no restrictions as to the size of the foreign participation in the capital of a Bulgarian company and, therefore, up to 100% of the registered capital of a local company can be held by foreign persons.

The minimum capital to register a limited liability company in Bulgaria is 2 BGN (1 EUR), and it usually takes up to 2 weeks only to register the company.

It is essential to note that Bulgarian corporate laws do not discriminate against foreign firms. In line with this, a foreigner who registers a company Bulgaria enjoys the same privileges and is subjected to the same corporate terms as that of locally-owned companies.

How to get Bulgarian Citizenship by Naturalization?

Bulgarian citizenship can be acquired by birth, by descent, by naturalization, for extraordinary contribution to Bulgarian State, and on some other grounds. and this is regulated in the LAW FOR THE FOREIGNERS IN THE REPUBLIC OF BULGARIA.

If you have been living long enough in Bulgaria, typically five years since you become permanent resident in the country, then you will have the right to apply for citizenship, the application has to be presented in the Bulgarian Ministry of Justice.

What conditions are required for a foreigner to  apply for the Bulgarian citizenship by naturalization:

• Has reached the age of majority (18 years old);
• Has acquired a permit for permanent or long-term residence in the Republic of Bulgaria at least five years ago;
• Has never been convicted for any intentional indictable offenses by a Bulgarian court and there are no criminal law procedures initiated against him/her for an offense of that sort, unless if he/she has been rehabilitated.
• Possesses an income or performs an activity, which allows him/her to support himself/herself financially in the Republic of Bulgaria. also
• Has command of the Bulgarian language, subject to verification by a procedure established by order of the Minister of Education and Culture.
• Has been, for at least three years, and still is, legally married to a Bulgarian citizen;
• has been EU Blue card worker in Bulgaria for a period longer than 5 years.
• The person needs to submit a written application together with all necessary documents, in Bulgarian or accompanied by an official translation.

The next step is a crucial one, and one that many people are afraid of:  to pass the interview test from the Ministry of Culture, the foreigner that want to become citizens of Bulgaria needs to pass the test that includes knowledge of Bulgarian history, culture, state structure. This is required for the candidate to show their commitment to this country.

Exams in Bulgarian for citizenship

The test is performed at the offices of the Център за оценяване в предучилищното

и училищното образование, (Assessment Center in Preschool and school education) The exam is in the form of a test containing 20 questions and takes place within one astronomical hour. The exam is successfully passed if the candidate has correctly answered at least 12 test assignments.

Example of the test measuring proficiency in the Bulgarian language for citizenship

More samples can be found at copuo.bg

The examination is free of charge for all applicants. Those who have not passed the exam have the right to apply again not earlier than 3 months after their previous appearance.

Also part of the process is an oral interview. The interviewer registers his impression on the candidate’s knowledge of Bulgarian language. The questions in the questionnaire are predominantly personal. They mainly concern the candidate himself, and the answers are open.

The applications are registered and processed by the Bulgarian Citizenship Directorate at the Ministry of Justice of the Republic of Bulgaria.

The application is addressed to the Minister of Justice. The Citizenship Council, established at the Ministry of Justice, provides its opinion on the applications and makes further proposals following the written statements of the Ministry of Interior and the State Agency for National Security.

The Minister of Justice, on the grounds of the opinion of the Citizenship Council, makes a proposal to the President of the Republic of Bulgaria for the issuance of a decree (if all documents are accepted, and the test interview approved, and check have favorable results) for the acquisition, of Bulgarian citizenship. The Minister of Justice proposes the issuance of the decree within 18 months, and 12 months if it is naturalization for persons of Bulgarian origin.