Bulgarian company formation is a straightforward procedure, the requirements of the applicable commercial legislation are clear and the whole process is fast and easy.
There are many advantages that can drive an investor to open a new company in Bulgaria but maybe the most important one is the lowest corporate tax rate in the entire EU.
Corporate income tax in Bulgaria amounts to only 10% on profit.
Furthermore , profit itself can be minimized by various legal and accounting mechanisms of deducting different kind of expenses from company’s annual turnover.
Thus , If you have a good accountant of business consultant , he can advise you about all possible expenses that are subject to deduction.
The second advantage, most valued by investors , is the minimum required registered capital.
The minimum registered capital of a Bulgarian limited liability company ( OOD of EOOD) is only 2 Bulgarian levs which equals to little more than 1 Euro.
What does this practically mean ? In The first place, it means that one can open a Bulgarian company at minimum possible costs within the EU.
Capital increase can be made any time , therefore even some investors who expand their big businesses choose to establish small companies first and then transform them into medium or big ones by raising the capital .
secondly , the small foundation capital means that the business risks are absolutely minimal , the amount of the foundation capital . Even if the company has a million debt – if shareholders are limited to this 1 Euro.