Since 2003, the Financial Supervision Commission has been Bulgaria’s administrative organization in charge of preserving security and transparency within the non-banking financial business. This body guarantees the security of customers through legal, regulatory and informational assistance.

Overview

In Bulgaria, the forex corporations are viewed as investment organizations and manage their projects on the basis of a license for presenting investment services (Investment Services License (ISL), which recognizes the services that business authorized to provide, as well as concerning which financial instruments.

  • Incorporation & obtaining a license: from 3 to 7 months
  • Minimum paid-up capital: 110,000.00 or 640,000.00 Pound depending on the license type (STP or MM)
  • License government application charge: 2800 or 4500 pounds depending on the permit type
  • License renewal government fee: 1200 Pound
  • There are two standards of licenses in Bulgaria relevant for forex and two types of organizations can apply – ordinary Ltd’s and JSC’s:
  • Standard license – needs 112,500 Pound initial capital, the broker can hold clients’ funds but cannot trade on its personal account.
  • Full license – requires 673,500 pounds) – the broker can deal on its individual account.
  • As an extra advantage, Bulgaria has a very qualified workforce and comparatively affordable salaries. A qualified Bulgarian director may be found at 875 pounds per month.
Notable features

General information

Company structure

  • At least 1 shareholder needed. Who can also be a legal person, no nationality limitation.
  • At least 1 local director. Approved to apply with at least
  • Beneficial owners’ details – revealed to the governments
  • Shareholders’ details – part of the public record
  • Directors’ details – Part of public record

Taxation

  • Dividend tax – 5%
  • VAT –0%. The EU regional deliveries and the export are free of the VAT
  • Income tax – 10%
  • Bulgaria is a European Nation so a Bulgarian Financial Services License or Forex License will enable you to engage in all EU
  • Bulgaria has a 10% corporate income tax rates

Accounting conditions – Regular accounting and Audited accounts submission are expected

  • Registered office – Needed
  • Local employee – Needed (3 and more)

Company name

  • Language: Any
  • Letters: From the Roman alphabet
  •  The organization name needs to end with such suffixes or their abbreviations: Limited, Corporation, Incorporated, Society Anonyme, Sociedad Anonima or Aktiengesellschaft.
  • Titles Requiring Approval or a Licence: Bank, Insurance, Assurance, Re-Insurance, Trust, Trustee, Savings, Royal, Asset Management, Fund Management, Investment Fund, Building Society, Municipal, Chartered.

N.B.

  • Restricted contacts for company name: name of state, federal or local government.
  • Any name that indicates illicit activity or indicates royal or administration patronage is restricted.
  • The registrar may refuse any name which it deems objectionable or opposite to the public interest.
  • The organization name is limited to be identical or similar that of an existing corporation.
  • In the case when a foreign language is used for the business name the translation may be required by Registrar to guarantee conformity to above-listed restrictions.
Procedure

Gathering and preparation of all of the papers for initial verification

  • When the initial stage is completed, the originals will have to be couriered
  • Establishment of a company in Bulgaria
  • Applying to Bulgarian FSC for license
  • Throughout the process, FSC will need extra documents that will have to be presented in order to back-up specific data
  • Preparation of ad-hoc reports and communication with the FSC
  • The application will be prepared with FSC
  • Conditional endorsement will be provided by FSC
Documents

In order to receive License, kindly present the following documents:

For a local bank:

(All beneficial owner, director, shareholder, authorised signatory)

  • A notarized proof of original passport
  • A copy of evidence of residential address
  • A notarized proof of a Letter of Reference form Bank

For local regulatory authority:

(All beneficial owner, director, shareholder, authorised signatory and secretary must provide)

  • CV
  • A notarized proof of a valid passport
  • A copy of proof of residential address
  • Professional letter/bank reference
  • A notarized copy of a University
  • Signed and notarized application forms

N.B.

  • If documents are not in English language or language of a particular country, then they need to be brought by a notarized translation.
  • Please guarantee that notarization is in the English language if not then kindly present with notarized English translation.
  • Additional papers may be asked by the regulatory authority or local Bank at any point to certify specific information