Dear Customers,

As you know a limited company is needed if you want to own freehold property in Bulgaria.

Forming a company
Who can form a Limited Liability Company & how?

A foreign or Bulgarian person (judicial or physical). The person/persons will be liable for the company's obligations to the value of his/hers share in the company's registered capital. The shareholders conduct preliminary discussions on the commercial activities they intend to engage in. Based on their agreement, Articles of Incorporation are prepared & signed by all shareholders.

A dedicated bank account is opened to collect all share capital. The minimum share capital required is 5,000 leva.

The company exists from the moment it is added to the Commercial Register of the district court of where the company will be based. The entry is made upon issue of a district court decision for the incorporation. The following documents must be available at the time of the submission of registration application to the district court.

1. Articles of incorporation;
2. Memorandum for appointment of Director/ Directors;
3. Proof that each shareholder has paid at least one third of its interest, but not less than 10 leva;
4. Proof that at least 70 per cent of the registered capital has been paid.

The Bulgarian State Gazette is the official paper of Bulgarian State. All Bulgarian legislation is published there for the law to take effect. Publication of the company entry in the Commercial Register does not complete your company formation, it announces to the general public the act of formation.

Finally, your new company will need to register immediately with the National Tax Register Authority.

Once the entire share capital has been paid up these funds can be accessed and withdrawn.

The process of forming your company can take anywhere between a few days to two weeks.

For a fee of EUR 500.00 we can set up a company and complete all the above details on your behalf.

If you decide not to buy a property from Bulgarian Property Advisors, the company set up fee will be 800 Euros.

The company must not necessarily be actively engaged in any kind of trade. It is simply a tool enabling you to buy and own properties in Bulgaria. The limited company is registered with all relevant Bulgarian Institutions - The District Court's Registry, BULSTAT and the Tax Office.

Since the company is a Bulgarian Business Entity it is required by law to pay taxes to the Bulgarian Tax Authorities.

31st March every year is the deadline for submitting Company Accounts and Corporation Tax Returns (Tax Declaration) for companies incorporated before 31/12/the previous year. A penalty may occur if you do not submit the relevant documentation before the above deadline. Bulgarian Property Advisors will not be responsibly for any penalties, caused by delay in sending the company tax return to Bulgarian Tax Office! We strongly recommend our customers to seek a help from a chartered accountant in Bulgaria.

If the company has been used only for the purchase of property and no other activities (like selling or renting out the property or other activities classed as trade) have been performed then the appropriate documentation must be sent to the relevant authorities (a tax declaration for zero income).

This service is provided by our Bulgarian chartered accountant Mr. Nick Nikolov. The charge is 350 Euros per year.

For any details or questions you may have regarding this, please e-mail him at: accountant@bg-properties.co.uk. Please specify in your e-mail the name of your Limited company in Bulgaria. He will explain what you need to do next.

Bulgarian Property Advisors Ltd

Contact us:

+44 (0) 845 226 0742 or info@bg-properties.co.uk