Last Updated on April 1, 2023 by Bulgarian attorney
Set up a subsidiary in Bulgaria
The subsidiary is a company that is partially or fully owned by another company called parent company. There are no restrictions about the jurisdiction where the parent company is incorporated. This can be an EU or non-EU, offshore or inshore company. Practically, setting up a subsidiary of a Seychelles company is as easy as setting up a subsidiary of a EU company in Bulgaria.
Your Bulgarian subsidiary can be EOOD, OOD, EAD or AD.
|Number of shareholders||1||2 or more||1||2 or more|
|Minimum capital||1 €||1 €||25,000 €||25,000 €|
|Management board||No applicable||No applicable||Board of minimum 3 directors;||Board of minimum 3 directors|
|Directors||Only physical persons||Only physical persons||Can be foreign or local companies||Can be foreign or local companies|
Your Bulgarian subsidiary can be set up fully remotely by granting a certified POA to our team.
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What are the requirements to register a subsidiary in Bulgaria
Documents that prove the existence of the parent company should be provided. This is in the form of a business extract issued within the last 6 months and Articles of Association apostilled.
How long does it take to be fully operational
Upon receiving the certified POA and apostilled Business Extract of the parent company, the subsidiary can be fully established within 5 working days.
Few reasons to set up a subsidiary in Bulgaria
Establishing a subsidiary in Bulgaria for an offshore corporation can offer confidentiality, in addition to the potential for dividend transfers from the Bulgarian subsidiary to the parent company being tax-free. There are several other compelling reasons to set up a subsidiary in Bulgaria. Some of them are:
- Access to EU market: Bulgaria is a member of the European Union and offers easy access to the EU market. A subsidiary in Bulgaria can benefit from the free movement of goods, services, capital, and people within the EU.
- Low business costs: Bulgaria has one of the lowest tax rates in the EU, and the cost of doing business is significantly lower compared to other EU countries. This can result in cost savings for the parent company.
- Favorable business environment: Bulgaria has a favorable business environment with streamlined regulations and a transparent legal system. This can make it easier for the subsidiary to operate and grow its business.
If a subsidiary is not the right entity for a foreign company to establish a presence in Bulgaria, opening a branch in Bulgaria can be an alternative option. A branch is a part of a foreign company that conducts business in Bulgaria but is not a separate legal entity from the foreign company. It operates under the same legal entity and has no separate legal status.
What are the main differences between branch and subsidiary
|Minimum capital||None||1€ to 25000 € based on type of company|
|Time to register||5 working days||5 working days|
For more information about establishing a subsidiary in Bulgaria, please do not hesitate to contact our team.