REGISTER COMPANY IN BULGARIA
To Register company in Bulgaria – is there any real benefit?
The size of the corporate tax in Bulgaria is 10% and this is something that sounds great. But there are also other countries where the corporate tax is also low. For example, in Poland, Cyprus, Estonia and Romania. Why is everybody saying then that it is a great advantage to register a company in Bulgaria? The answer to this question lies in the size of the dividend tax in Bulgaria. It is only 5% and it is non-related to the amount of the net profit that is being distributed. In Europe and also in the world this is one of the lowest rates for the dividend tax, excluding only some offshore jurisdictions.
TO TRANSFER THE CORPORATE PROFIT INTO PERSONAL WEALTH VIA BULGARIAN COMPANY REGISTRATION!
As a whole the policy of most countries is of a restrictive nature in relation to the distribution of the companies profits and the transferring of the corporate profit into a personal wealth. We will not engage ourselves into an analysis as to why this is the case but it is a fact. Complicated legal schemes are used in the inheritance of businesses and corporate assets, in order to avoid the inheritance tax. All of these issues can be avoided by the registration of the Bulgarian Holding Limited Company to which will be redirected all turnover and business operations of the investor. Here we are not discussing a hollow company – a postbox firm type! Here we are discussing a real business in Bulgaria, and this can be achieved without much efforts. This is especially true for companies with mainly commercial activities.
WHAT TYPE OF BULGARIAN COMPANY TO BE CHOSEN WHEN WE DECIDE TO CREATE A HOLDING STRUCTURE IN BULGARIA?
In practice every single capital company in Bulgaria is suitable for conducting of international commercial activity, and the distribution of its profit under the form of dividends. When the investors are less than 10, the most suitable legal for is a Limited Liability Company (OOD in Bulgarian). In this type of a commercial entity the connection between the shareholders themselves and between the shareholders and the company is much stronger. Every one of the shareholders is actively involved in the running of the company, as every important questions and matter is decided in the common shareholders meeting. If we accept this as a negative, then the biggest plus of this type of companies is the higher degree of protection of the rights of the shareholder. All disposal actions with the company shares can be performed only with a notary certification of the signatures, giving the highest degree of security over the ownership of the company shares.
IS IT EASY FOR THE INVESTOR TO SALE HIS/HER SHARES AFTER THEY REGISTER COMPANY IN BULGARIA?
It all depends on how the Bulgarian Company is organized. It is very important the precise selection of the legal company that will consult and oversee the process of the company formation in Bulgaria. A Bulgarian Law firm with experience in the specifics of corporate and commercial law, as well as deep knowledge in the areas of taxation and accounting. The corporate contract should be drafted in lieu with the future development of the relationships between the shareholders. If they are residents of different countries and are separated from on another, the disposition transactions of the shares should be relieved in order to facilitate the incorporation and the transferring of shares in the Bulgarian Trade Register.
For more information please visit: https://bulgarianlaw.co/en/open-company-in-bulgaria/