Bulgaria, a European nation resided in the South-East of the continent, joined the European Union in 2007, thus helping from the harmonized EU laws for financing services. The regulating body for financial intermediaries is the Bulgarian FSC who passed the Markets in Financial Instruments Act in 2007, in line to transpose MiFID into a local authority. Since then, the country has maintained to bring several venture firms, largely thanks to a low 10% tax rate. Since Bulgaria didn’t make the switch to the euro currency – Bulgaria, however, prints its own money, the Lev-, the nation offers a low cost of living and an economical but adequate labor force. These make Bulgaria an engaging jurisdiction for anyone wanting to establish an investment firm.

Overview:

The Financial Supervision Commission of Bulgaria provides an authorized entity to administer various types of financing activities. Depending on the extent of business activity of a particular candidate, several licensing conditions may apply; in this regard, we advise to ask us before the final decision to apply for a particular license.

The holder of portfolio administration license is entitled to receipt and transfer orders on behalf of the customers, intermediate the completion of transactions, provide property advice, manage funds of customers and holding client’s money and/or financial instruments.

Notable features

General information

Company structure and staff:

  • Minimum one shareholder needed. He/ She can be legal entities or natural persons.
  • Minimum two directors required. Can be only natural persons.
  • A Company Secretary
  • At least 3 employees with a corresponding education based in a local office in Bulgaria

Taxation

  • Corporate income tax – 10% (the cheapest rate in EU)
  • VAT- 20% (EU internal transfers and the export are free of VAT)
  • Personal income tax – 10%
  • Dividend tax – 5%

Timeframe- 

4-5 months

  • About 1 month – collection and development of relevant papers for application
  • Around 1 month – business incorporation and establishing local officials and employees
  • 3 months – the method of review of the application by FSC
  • Capital
  • Minimum stated capital requirements:
  • Minimum capital requirement is 109000 Pound.
  • The capital of the corporation cannot be obtained from a loan. It must belong to the owner of the business.

Accounting requirements

  • The Company will be obligated to fill audited financial reports and tax return within 3 months from its balance sheet date
  • Permanent accounting
  • Accounting documents should be kept at the local office

Local office – Needed

Registered office – Needed

Local employees – Needed (minimum 3)

Procedure

In order to obtain a license, the following actions will be carried out:

  • Gathering of appropriate KYC documents for initial verification
  • Establishment of a Bulgarian company
  • Development of relevant papers
  • Organizing a local office, local workers
  • Applying for the license
  • The FSC grants pre-approval
  • The paid-up capital shall be transferred in full within 14 days from the pre-approval
  • Once the permission is given, changes will be presented to the commercial register and a licensed entity may begin the business
Important Documents

In order to receive a license, Startup Formations will fill all important paper forms and also obtain apostilled corporate documents.

For that reason, please present us with the following documents.

  • Notarized passport
  • Notarized 2nd ID
  • Approved Utility Bill
  • Notarized Criminal Record
  • Bank reference Letter
  • 2 Character Reference Notes issued by specialists
  • Certified Diplomas of Higher Education
  • Detailed CV dated and signed by the applicant
  • Detailed business plan
  • Manuals (will be drafted by Startupformations): Anti Money Laundering management, security policy, and procedures, and others, if asked by FSC
  • Comprehensive data on staff members

All documentation shall be presented in English language or translated to English by an expert and certified by Notary Public.