Start A Company in Bulgaria
Start A Company in Bulgaria – The first steps after the registration of your company by the Commercial Register in Bulgaria would be:
- Getting a company’s stamp.
In the not so distant past companies in Bulgaria have been asked to use stamps every now and again. Gradually this practice has ceased and now the situation is completely different – the Bulgarian law does not request that companies to have a company stamp. The emphasis nowadays is on the role of the company’s director/manager who signs all documents connected to the business of the company and this is why he provides a notarized sample of his signature as part of the full set of the documents for the registration of a new company.
Nevertheless, some bureaucratic institutions still request the use of a company stamp and it is a good idea to get a company’s stamp at one of the numerous stationary offices in the streets of Bulgarian cities and towns.
- Getting a license.
Depending on the nature of your business, you might need a license to have the right to operate professionally. Failure to receive the license that you need might incur hefty fines and put your business on a halt. This is why it is very important that you are aware of the specific requirements regarding the need of license for your business.
Next, you have to research in detail the requirements for the type of license that you need and once your company is registered you have file your application at the relevant institution with all requested documents, as receiving a license requires time.
Usually businesses operating in the fields of insurance, banking, financial trading services, medicine and pharmaceutical services and trade, travel agencies, taxi services and freight forwarding need to hold a relevant license.
- Opening a Business Current Account.
Once the registration of your company is completed you have to go back to the Bulgarian bank where you opened the account for keeping your share-capital. After informing your bank that your company’s registration has been completed you can either take out the money of your share-capital and close this account or you can transform it into a Business Current Account and if necessary, open more accounts if your business requires it.
You can also set up your online banking as this is a very useful business tool with the help of which you can manage your funds wherever you are. Not later than seven days after you start your business you will need to file a declaration in your regional branch of the Inland Revenue.
- Getting a till/cash register.
In case that you will be trading and receiving payments in cash from your clients, you will need to buy and register a till/cash register with the Inland Revenue because you will have to issue a receipt for each of the payments. However, if you will conduct your business only online or by bank transfers, you will not need a till/cash register.
You will need to either employ an accountant full time or sub-contract an accountant, depending on your business strategy, so that your accounting will be up to scratch.
- Employment contracts and social security and medical insurance monthly payments.
When your company is in operation you can start employing your staff taking care of all social security and medical insurance monthly payments and all payroll issues connected to your employees.
- VAT registration.
The new companies registered in Bulgaria are not automatically VAT registered as the established practice is in some countries. Companies in Bulgaria can voluntarily complete their VAT registration or they can wait for their turnover to reach 100 000 Bulgarian levs within 12 consecutive months to proceed with their VAT registration. Once the VAT registration of a company is completed, it has to start filing monthly VAT declarations.
If you want to start a company in Bulgaria, LM Legal Services can assist you!
Steps to START A COMPANY IN BULGARIA
|Getting a company’s stamp||In the past companies in Bulgaria were required to use stamps. At this point in time, this practice is not relevant. You only need a notarized sample of your manager’s signature.|
|Getting a license||In some cases, you may need a license to have the right to operate. Not attaining a license may lead to hefty fines. The need for a license depends on the nature of your business.|
|Opening a business current account||After registering your company, you can either take out the money of your share capital and close this account or you can transform it into a Business Current Account. If you want to manage your funds wherever you are you can set up your online banking. Seven days after you start your business you will need to file a declaration in your regional branch of the Inland Revenue.|
|Getting a cash register||If trading and receiving payments in cash, you will need to buy and register a cash register with the Inland Revenue. This will help you in issuing receipts. You will also need to employ an accountant.|
|Employment contracts and monthly payments||After registration you can:Start employing staff.Taking care of social security and medical insurance payments.Tackle payroll issuers with your employees.|
|VAT registration||Companies registered in Bulgaria are not automatically VAT registered. They can choose to complete their VAT registration. Or, wait for their turnover to reach 100 000 Bulgarian levs. Once the registration is completed – monthly VAT declarations must be filled.|
Frequently Asked Questions
Do I need a company’s stamp to be able to do business in Bulgaria?
No, you don’t need a company’s stamp to do business in Bulgaria, as the director/manager of your company is authorised to sign documents on behalf of the company and he runs the company. However, there are some institutions or companies that might ask you to stamp a document, so it is a good idea to buy a stamp of your company.
Do I need to open a current business account of my Bulgarian company at a Bulgarian high street bank?
You are not obliged to open the current business account of your company in Bulgaria at a Bulgarian high street bank. You can open your business account at Fintech or abroad but you will have to give the bank statements of your business accounts to your Bulgarian accountant.
Is buying and registering cash register/till mandatory?
You do not need to obligatory have a cash register/till. You can receive payments from your clients only by bank transfer.