Relocate your Greek business in Bulgaria

During the recent years, the number of Greek companies which have decided to relocate to Bulgaria has increased exponentially reaching 60 000 according to some sources. This is mainly due to the ongoing problems in the Greek economy and the still unstable political situation. Financial troubles have affected severely the small and medium business limiting access to funds and hindering transactions.

Why Bulgaria?

Bulgaria is the most logical choice for entrepreneurs who want to move their business away from Greece for several reasons.

1. Bulgaria is the only neighbor country member of the EU

Indeed moving to Bulgaria is not associated with huge transport costs and companies can still keep the massive benefits from being situated in the internal market including free movement of goods and services. Same does not apply for other neighbor countries like Turkey and Macedonia. This is the main reason there are so many Greek companies registered in Bulgaria.

2. Lower taxes

With only 10% corporate tax and 5% tax on corporate gains, Bulgaria has the lowest profit related taxes in the whole EU. VAT is also fixed at 20% for the majority of goods and services. Furthermore, accounting services in Bulgaria are usually quite cheap and for a small business can amount to less than 30 euros per month.

3. Relatively stable political and economic situation

Claiming political and economic stability for a European country nowadays may seem a bit far-fetched but for Bulgaria it actually makes sense. The country has been slowly but yet steadily recovering from the global financial crisis during the last several years and no major political change has occurred.

How does one relocate a business to Bulgaria?

Bulgarian law allows the registration of the most common type of company in Europe, namely the limited liability company or “LLC”. The majority of Greek citizens chose to register an LLC with a sole shareholder. The incorporation of such company is incredibly easy and usually takes less than a week. After the registration, the company can start operating immediately.

What do I need to do in order to start a company in Bulgarian?

Not much really. You should visit the country for a single day in order to visit a public notary and open a bank account for the company. These can also be done without traveling to Bulgaria. Instead of a public notary, you can visit the Bulgarian embassy in Athens and a company account can be opened by a third party with a power of attorney. If you visit the country make sure you have all the necessary documents prepared for you.

Minimum required bank balance for the new company is just 1 euro. Monthly bank taxes aren’t too high either and usually amount to less than 10 euros per month. Most Bulgarian banks also offer convenient online and mobile banking so you can basically manage your bank account from anywhere.

Normally, company registration in Bulgaria shouldn’t take more than a week but you should also consider registering under the VAT act. This step is necessary if you want your company to import or export goods and services. This registration takes about two weeks but is free of state taxes.

You will also need an administrative address for the company. However, many companies which offer incorporation services also offer such address. The prices are usually around 30 euros per month.

How much does it cost?

The market for company registration in Bulgaria is a competitive one and you can find a huge choice of different services. The prices range mostly from 150 to 400 euros. All taxes for the procedure are a total of fewer than 40 euros and some companies include them in their service fees.

Do I need to stay in Bulgaria?

As a European citizen, you can travel freely to Bulgaria and stay in the country for an extended period of time. However, you can also easily manage your company from Greece and delegate all the administrative stuff to an accountant or a lawyer.

Can I still keep my production facilities in Greece?

Yes, you can. If you have an office, a warehouse, a production line or anything else in Greece you don’t need to move it. You can still enjoy some of the more beneficial conditions which Bulgaria can offer you as a country of registration of your company.

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This article was originally published on Advokatami.bg.