Bulgarian Company Formation Guide

Shamrock Consultancy Services (Irl-UK-BG) has over 5 years experience in the Bulgarian property market sale and has offices in Bulgaria,Ireland and the UK.Our portfolio comprises of a wide range of rural property and real estate for sale in Bulgaria starting at just 5000 Euro for a rural house and a selected range of real estate for sale such as off-plan developments and luxury apartments in Sofia,Bansko,Sunny Beach,Varna and other locations in Bulgaria for sale as real estate investment.We provide our Clients with tailor made solutions and guidance trough the purchase process of property and real estate for sale,from property viewing trips to Bulgarian company formation,legal aid,legal Bulgarian translations,Bulgarian tax registration and the provision of an official business address in Sofia. Shamrock Consultancy Services provides this information here merely as a free guide to Company Formation.We would like to advice you make contact with a Bulgarian indepent sollicitor or one of our dedicated team members in our offices (IRL-UK-BG) prior to attempt the formation of your company on your own. Shamrock Consultancy Services can be contacted HERE REGARDING COMPANY FORMATION and other requirements or questions regarding Bulgarian Company Formation.   TYPES OF BUSINESS ORGANISATIONS

BULGARIAN COMPANY FORMATION

In order to purchase as a non-Bulgarian National land or property one has to establish first a Bulgarian Company. The registration of the Bulgarian business may be done from another country before a viewing trip is organised but it will cost more money as all the documents must be signed in front of a public notary and then submitted to the department of foreign affairs of your country. You may also encounter a few problems as some of the public servants are 'not informed'about this procedure!The first step is to register the name of your Bulgarian company with Bulstat (National Statistics Office of Bulgaria). This is a simple procedure. From there the documents are drawn up in both Bulgarian and English. This translation must have the stamp of a sworn translator and a Bulgarian notary. 2500 euro must be lodged into a temporary bank account as proof that the required capital of the company has been paid.The 2500 euro can be withdrawn directly after your bank account is registered. The documents are then submitted to the district court of the business. After approx. 10 working days the court decision is made and the company must then be registered in the local Tax and insurance offices and a temporary BULSTAT NUMBER is given. The next step will be to open an official business account with any bank and this then must also be registered with the above authorities. After a period of 1 month the OFFICIAL BULSTAT CARD is ready for collection. The team of Shamrock Consultancy Services has over 5 years experience in Bulgarian Company Formation and we can assist you trough the whole process of setting up your company ROADMAP TO FORM A LIMITED LIABILITY (COMPANY IN BULGARIA

THE PURCHASING OF PROPERTY

Land may be purchased after the collection of the court decision and before the collection of the official BULSTAT card. When a property is chosen by the client a preliminary contract is signed by both the buyer and the seller in front of a public notary.On signing of this preliminary contract,the sum of 10% of the agreed sale price is payed to the seller.With this contract the seller agrees to sell you his property and you agree to buy his property.If you decide not to buy the property,you'll lose your initial 10% deposit and the seller can commence court proceedings against you.If the seller decides not to sell he is required to hand you back the deposit plus costs involved.The deeds are handed over as soon as the seller receives the amount in full. This can be done in 1 working day depending on how the money is transferred and all necessary documents of the seller are correct.Before choosing your property a due diligence check should be done with the local municipality in order to ensure that all the owners (there may be several owners) of the property agree to sell. The above procedure is time consuming due to lack of customer services in the public offices and unmotivated public servants. It involves long hours of queuing followed by troublesome language difficulties. It is possible and legal to attempt all this by yourself as a foreign national but not advised. After the transfer of title deeds and all the documents of your property and company are in your possession you are required to hand in your company accounts once a year.Currently this means by the 1st of march.If your company does little or no business this should cost very little for an accountant to submit these for you. Because the property is owned by your business and not you as a physical person you will not be required to pay personal income tax in your home country if you decide to lease the premises out. Your company in Bulgaria will have to pay the tax instead.

SELLING YOUR PROPERTY
	When or if you decide to sell your property the equivalent of capital gains tax must be paid in Bulgaria which amounts to approx. 15%. If you decide to bring your profit home, the difference between the Bulgarian and your country of origins capital gains tax must also be paid. This will only be an issue if you dissolve your company Info on Company Formation