Contabil - company registration in Bulgaria - FAQ

Frequently Asked Questions

Why Bulgaria?

Bulgaria is a member of NATO since 29.03.2004 and a member of EU since 01.01.2007.

The national currency is Bulgarian leva or BGN. It's currency rate is fixed since 1997, initially 1 BGN was 1 DEM (1 German mark) and after the introduction of euro, 1 euro = 1.95583 leva.

Bulgaria offers a stable fiscal environment and low taxes, the profit tax for companies is 10% and the tax on dividends is 5%.

VAT rate in Bulgaria is 20%.

In case that you do intra-community supplies or you deliver intra-community services a zero rate VAT is applied.

English language is popular in Bulgaria and the work force is well-educated.

Bulgaria

Why Ruse?

Ruse is the fifth largest town in Bulgaria and its population is about 147 000 people.

Ruse is a border town and it is situated in the border between Bulgaria and Romania.

Ruse is the closest Bulgarian town to the Romanian capital Bucharest.

Ruse and the Romanian town Giurgiu are connected through the bridge over the river Danube.

In the town of Ruse is situated the University of Ruse Angel Kanchev.

Why Contabil?

We are specialized in the field of intra-community commerce and international accounting since the beginning of year 2007 when Bulgaria has entered the EU.

We have significant experience in this area and we are very familiar with the needs of the international companies.

We have also participated in a huge number of tax inspections. The qualities of a good accountant become visible during a tax inspection like you know the good lawyer from the outcome of his cases. An accountant with no tax inspections is like a surgeon who makes no surgeries. Our purpose is to build collaborations that will last after the tax inspection...

Legislation has become too tough. Is there anything that can be done?

If in your case something can be done, we will tell you what is it.

Legislation varies between different countries and where there are differences there are also opportunities.

Bulgaria has its own legislation which in many respects differs from the legislation of the country you come from.

How much is the rate of the profit tax in Bulgaria?

The rate of the profit tax in Bulgaria is 10%.

The rate of the tax on dividends is 5%.

Do you register companies? How much it costs?

Yes, we register limited liability companies in Bulgaria.

A new company which is not VAT registered costs 285 euro and takes 3-4 workdays to register.

A new company which is VAT and VIES registered costs 500 euro.

  • The first step is to register the company in the Trade Register. It takes 3-4 workdays and costs 300 euro.
  • You must come in Bulgaria once again for the VAT registration. It takes up to 14 days (2 weeks) and costs 200 euro.

The total for the company registration is 500 euro and 3 weeks. You have to come in Bulgaria 2 times.
If in the company participate several shareholders or managers, the first time all of them will have to come in Bulgaria, the second time one of the managers is sufficient.

May I buy a company? What are the advantages and disadvantages?

Yes, you may buy an already VAT registered company without any activity so far. It costs 840 euro. You can change the name of the company for free. It will be a recently registered company. The company will already have a valid EU VAT registration code at the moment you buy it. The change of the ownership will take a week and after that the company may begin its activity. You need to come in Bulgaria only once unless you want to open a bank account in Bulgaria, in which case it will be necessary to come a second time.
In case of 2 shareholders, the price of the company is 890 euro.

May I come for a consultation before I decide to open a company in Bulgaria?

Yes, of course. The consultation is free.

You may come to obtain a consultation about the business and fiscal conditions in Bulgaria. They you may decide whether to open or buy a company or no, or to delay the decision.

Do you offer accounting services?

Yes, we do. The accounting is our principal activity.

Will we sign a contract for the accounting services?

Yes, we will. According to the contract our company will be obliged to keep the bookkeeping and the accounting, to offer you consultations, to prepare and submit to the tax authorities all types of declarations and forms required, including VAT, VIES, Intrastat and annual reporting, to represent the company in cases of tax inspections and audits. The contract provides responsibility for the accounting company (it means for us) if we do not fulfill correct our obligations and then we will be obliged to pay compensations for the damages we caused due to our mistakes.

How much does the accounting cost?

If the company is not VAT registered and there is little or no activity, the price of the accounting will be 150 euro per year.
If the company is VAT registered the accounting is paid monthly.
A month without any activity costs 40 euro.
For a month with intra-community or international activity if the monthly turnover is up to 100 000 euro, generally accounting costs between 100 and 200 euro per month.
The prices depend on the turnover, the number of the invoices, the types of the invoices issued and received and complexity of the operations.

Do I have to pay a rent for your office?

No, you don't. We will give you an address for the company registration. The address is included in the price for company registration and is not paid separately. You may use the address for an unlimited period of time. At this address we will receive company's correspondence, including from the tax administration and from your suppliers and clients.

Do I have to pay social insurance for a pension or health insurance in Bulgaria?

No, you don't. Each EU citizen pays them in the country in which is the center of his vital interests, generally this is the state in which he lives more than 183 days in a calendar year.

I will have employees. Do you offer payroll services?

Yes, we do. The social insurance and the income tax in Bulgaria are about 50% of the net salary of the employee.

May I employ a bookkeeper in Bulgaria to do the primary bookkeeping and you to do the accounting?

Yes, it is possible. This is an appropriate option if you will have a larger number of primary documents and therefore it will be cheaper for you to have your own bookkeeper and our accounting company to register the invoices, submit the declarations and be responsible for the whole process.

Are your services intended only for companies from Ruse?

Yes, our company operates in Ruse and we offer services in Ruse and Ruse district.
We can register companies in other places in Bulgaria, but we can not offer you an address there.
For the accounting services it will be sometimes necessary to be presented in the respective tax administration, which will be too expensive and it will be more convenient for you to find an accounting company there.

Where is your address?

2 Tsar Ferdinand Boulevard, ground floor,
entrance from Han Omurtag Street,
Ruse, post code:7000, Bulgaria

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