Bulgaria LLC (OOD)
Formation of Limited Liability Company (OOD) in Bulgaria
Bulgarian LLC company with paid up share capital of only €1, flat corporate tax rate of 10% on profits, low withholding tax and voluntary VAT registration. Great solution for duty free trading within the European Union.
FACTS & INFO
Bulgaria has a strategic location, allowing investors to access the entire EU and the markets of Central and Eastern Europe. Bulgaria has a predictable and stable economy and government, and boasts the lowest corporation tax in the EU at only 10%. The Bulgarian OOD is the most internationally well known and therefore used company type in Bulgaria. This company type can be the best compared to the English private limited company or ltd. As of 1 January 2008, in order to obtain the status of a legal entity a company must be registered with the Commercial Register.
The trade name of a company shall contain the extension 'Druzhestvo s Ogranichena Otgovornost' [Limited Liability Company] or the abbreviation 'OOD'. Should all the capital be owned by one person, the trade name shall contain the extension 'Ednolichno OOD' [Single Person Limited Liability Company].
MEMORANDUM OF ASSOCIATION
The Memorandum of Association shall be executed in writing. If the Limited Liability Company is formed by one person, a Constitutive Deed shall be drawn up instead of a Memorandum of Association. For a Limited Liability Company a Memorandum of Association must be prepared by a licensed law practitioner and filed at the Office of the Registrar of Companies. The Memorandum specifies the activities in which the company may engage in and the rules governing the internal management of the company.
The limited liability company is founded or owned by one or more persons. A shareholder can be a physical or legal person of any nationality.
The share capital should be placed in a special capital-raising bank account opened for this purpose. The minimum authorized capital is BGN 2 (EUR 1).
DIRECTORS OF THE COMPANY
A Company shall be represented by the manager. Where several managers have been appointed each one of them may act independently, unless the articles provide otherwise. The minimum number of directors is one. There is no requirement to have a director-resident of Bulgaria. The director of an LLC in Bulgaria must be an individual, no legal entities permitted.
*Please contact us if you are interested in our Nominee Director services
REGISTERED OFFICE AND LOCAL AGENT/SECRETARY
Every company is required to have a registered office and address in Bulgaria which should be notified at the Commercial Register.
The General Meeting of shareholders is the supreme management body of OOD. Each shareholder has voting rights equal to their share stake.
It normally takes 10 business days to have a company incorporated.
RECURRING MAINTENANCE FEES AS FROM 2ND YEAR
- Recurring maintenance fees as from 2nd year - $850
- Provision of registered office and registered address
- Submission of Annual Return
A company registered in Bulgaria can take advantage of the favorable tax system. The country boasts one of the lowest corporate tax rates in EU – 10% flat rate. The simplicity of the tax system makes calculations very easy further decreasing administrative costs. All that, combined with lower labor costs, mounts up to significant cost savings. Statistics show that our clients decrease their administrative and tax expenses by more than 20% on an annual basis.
- Corporate tax – 10 % of the net profit per year;
- Dividend tax - 5%;
- VAT – 20%. EU internal deliveries and exports are free of VAT;
- Personal income tax - 10%.
AUDIT AND FINANCIAL STATEMENTS
All companies in Bulgaria are required to keep accounts of their business transactions. An audit is only required if the company exceeds certain limits for turnover, assets or employees. Monthly VAT returns should be filed if the turnover exceeds €25,000. Every year the annual return as well as accounts should be submitted to Companies Registrar.
Our Services & Requirements
OUR SERVICES FOR THE COMPANY FORMATION IN BULGARIA:
- Name check and approval
- Filling incorporation documents with the Trade Register
- Original corporate documents
- Payment of the Government fee
- Provision of registered address for one year
- Opening of a start-up capital bank account with required minimal capital of BGN2 (EUR 1)
- Rubber stamp
DOCUMENTS REQUIRED FOR THE COMPANY FORMATION
Please provide the following documents for all Directors, Shareholders, Beneficial Owners, Authorized Signatories:
- Notarized copy of valid passport.
- Original or Certified copy of utility bill / bank statement (as verification of residential address, dated within 3 months).
- Original or certified copy of Banker’s reference letter (dated within 3 months).
- In cases where shareholders and/or directors are corporate bodies, full apostilled set of corporate documents and Certificate of Good Standing (for companies registered more than 1 year).
IMPORTANT NOTE: LICENSABLE BUSINESS ACTIVITIES
If you conduct any activity without required license or authorization granted by a relevant authority in any jurisdiction, STARTING BUSINESS will not be able to assist you with the company formation or bank account opening related to such unlicensed activity.
Licensable activities include, but are not limited to: provision of financial services involving trading/brokerage in foreign exchange, financial and commodity-based derivative instruments and other securities; offering investment advice to public; insurance and banking business; operation and administration of collective investment schemes and mutual funds; payment processing services; money exchange, money transmission or money brokering; asset management; safe custody services; gaming, gambling and lotteries.
Please contact us if you need our assistance in licensing of your financial, Forex brokerage or gambling company.
Shipping of corporate documents or banking kits to your destination requires an extra charge and will be automatically added to your order during checkout. Shipping costs for international courier services are set automatically depending on geographic zones.