Bulgarian Branch Office
The Lawyers at Bulgarian Companies Limited may assist you to open a Bulgarian branch office of your foreign company. Bulgaria is favourable to foreign investment and the establishment of branches is a popular choice. In particular, branches can take advantage of Bulgaria’s lowest tax system in the EU, low business costs and a small timescale for incorporation.
Advantages using our services to establish a branch office in Bulgaria
- Top location registered office address for your Bulgarian branch office free of charge for as long as you need.
- No maintenance, annual or hidden fees.
- Fast and hassle-free process to set up your branch in Bulgaria.
- Dedicated Accounting Services in Bulgaria.
How to register a branch in Bulgaria
To set up a branch in Bulgaria you have to provide the below:
- A copy of the parent company’s Certificate of Good Standing or Certificate of Incumbency.
- A copy of passport of the person who will be representing the branch in Bulgaria.
- A copy of passport of the director of the parent’s company.
Characteristics and requirements to the registration of branch offices in Bulgaria
- No capital requirements.
- No separate entity, but a registration of a foreign entity.
- Only physical persons can be a representative of the branch office.
How to open a bank account of a Branch in Bulgaria?
Since 1st of August 2019 banks in Bulgaria refuse to open company bank accounts unless the director of the company is a resident of Bulgaria. In other words, you have to apply for Bulgarian residency for EU citizens prior to applying for the opening of a company bank account. On the other hand, applying for Bulgarian residence card is a precondition to qualify for Bulgaria tax residency.
When is registering a branch office in Bulgaria interesting?
Usually registering a branch office is done by companies who don’t want to fall under Bulgarian law for corporate issues and companies who will have only limited activities in Bulgaria.
A Dutch company, which works solemnly from the Netherlands, opens a modest office in Bulgaria. The office won’t be more than a simple sales office and will employ a few sales-agents whom will sell the products of the Dutch company on the Bulgarian and EU market. All orders will be handled from the Netherlands and every part of the production is in the Netherlands. By registering a branch office in Bulgaria the Dutch company will have a ‘permanent establishment’ in Bulgaria. All profits made by the permanent establishment will be subject to only 10% Bulgarian corporation tax.
For more information about establishing a branch in Bulgaria, please do not hesitate to contact us.