Doing business

Bulgaria

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Setting up a company | FDI in figures | Why you should choose to invest | Procedures relative to foreign investment | Finding assistance for further information

Setting up a company

Types of companies and capital (max/min)	Number of partners/shareholders and liability
Private Limited Company (OOD) Minimum BGN 50,000 (shares of minimum BGN 500).	Minimum 2 partners. 1 member for a sole proprietorship. Liability is limited to the amount contributed.
Joint-stock company (AD) Minimum BGN 1 million (5 million in case of public subscription).	Minimum 2 shareholders. Liability on assets of the company and up to their value towards creditors.
General partnership No minimum capital.	Minimum 2 partners. Partners' liability is joint and unlimited
Limited partnership No minimum capital.	Minimum 2 partners, a sleeping partner and an active partner. Active partners' liability is joint and indefinite. Sleeping partners' liability is limited to the amount contributed.
Partnership limited by shares Minimum BGN 1 million ( 5 million in case of public subscription).	Minimum 3 sleeping partners. Minimum 2 active partners. Active partners' liability is joint and unlimited. Sleeping partners' liability is limited to the amount contributed.

Business setup procedures

Setting up a company	Bulgaria	Eastern Europe & Central Asia
Procedures (number)	4.0	6.3
Time (days)	18.0	16.3

Source: Doing Business.

For further information: Consult Doing Business Website, to know about procedures to start a Business in Bulgaria.
Register of commerce, only in Bulgarian.
The competent organization: It is possible to register a business directly on the site Invest in Bulgaria. Formalities take between 2 and 3 weeks.

FDI in figures

Foreign Direct Investment	2008	2009	2010
FDI inward flow (millions USD)	9,795	3,351	2,170
FDI stock (millions USD)	44,446.0	49,183.3	47,971.0
Performance Index*, ranking on 141 economies	5	19	-
Potential Index**, ranking on 141 economies	61	-	-
Number of Greenfield investments***	146	101	-
FDI inwards (in % of GFCF****)	58.9	239.3	-
FDI stock (in % of GDP)	89.1	107.7	-

Source:

Note: * The UNCTAD Inward FDI Performance index is based on a ratio of the country's share in global FDI inflows and its share in global GDP. ** The UNCTAD Inward FDI Potential index is based on 12 economic and structural variables such as GDP, foreign trade, FDI, infrastructures, energy use, R&D, education, country risk. *** Green field investments are a form of foreign direct investment where a parent company starts a new venture in a foreign country by constructing new operational facilities from the ground up. **** Gross fixed capital formation (GFCF) measures the value of additions to fixed assets purchased by business, government and households less disposals of fixed assets sold off or scrapped.

Why you should choose to invest Bulgaria

Strong points: Bulgaria's strong points are:
- An advantageous taxation system for investors;
- A sizeable workforce that is skilled and cheap;
- Very low cost of living;
- Its membership to the European Union; and
- A strategic geographical position.
Weak points: Even though the country has become attractive to investors and especially after its membership to the European Union, Bulgaria still has to take on a number of challenges:
- Inefficient bureaucracy;
- A very slow and inefficient judiciary system;
- A high level of corruption;
- The non implementation of the intellectual property and copyright laws; and
- A significant amount of the population having limited revenue.
Government measures to motivate or restrict FDI: The Bulgarian government has established a very advantageous taxtation system in order to attract investors and the costs of creating a company have also been lowered. The government has undertaken the privatization of a number of companies. We can name the following, amongst the most attactive measures put in place:
- A fixed company taxation rate at 10%;
- Competitive labor force costs;
- A skilled active population; and
- The country's membership to the European Union and its access to the EU structural funds.

Procedures relative to foreign investment

Freedom of establishment: Bulgaria is the country in the region most open to direct foreign investment with no limitation.
For further information visit the Investment Climate section on the Factbook site.
Acquisition of holdings: The proportion of foreign participation in new or existing businesses is not limited. Foreigners have the right to register any company types according to the Bulgarian Commercial Code, including legal type of businesses extending the benefit of Private Limited Company status to sole owners with a 100% foreign participation.
Obligation to declare: The agency for the promotion of foreign investment in the country provides information on the necessary authorization for setting up.
Competent organization for the declaration: Invest Bulgaria: Bulgaria Investment Information site
Requests for specific authorizations: No specific requirements.
For further information visit the site Invest Bulgaria.

Finding assistance for further information

Investment aid agency: Invest Bulgaria Agency
Invest Bulgaria
Other useful resources: Bulgarian Chamber of Commerce and Industry