Foreign Branch Companies

Foreign branch companies

In Bulgaria, the registration of branches is regulated by the Law on Promotion of Investments. Certain regulations that a branch must follow are also included in the Bulgarian Commercial Law.

Without being considered a legal entity, a branch opened in Bulgaria has certain advantages, for example, it doesn’t require a minimum share capital at registration, doesn’t have a minimum number of members requested and the nationality of the representative doesn’t need to be Bulgarian.

How to register a branch in Bulgaria

A branch opened in Bulgaria must be registered in the Commercial Registry of the Registry Agency before starting any type of activity. The registration must be performed by the foreign company’s representative or by an appointed lawyer, vested with power of attorney.

Here are a few up-to-date requirements to consider to open a branch in Bulgaria:

- After opening a bank account, certain documents must be prepared by the foreign parent company for registration
- The Articles of Association and the Memorandum of Association must be elaborated in Bulgarian, if not it must be accompanied by an authorized Bulgarian translation
- The certificate of registration of the foreign company is also necessary
- The decision of opening a branch, the decision of appointing the representative, and the registered office address
- A certificate of good stand regarding the foreign company’s activities
- The previous year’s balance sheet are needed at the time of branch registration

It is important to know that the above-mentioned documents must be legalized before being submitted at the Bulgarian Chamber of Commerce and Industry.

Making investments in Bulgaria

Bulgaria benefits from a great geographic location that allows free access to any kind of market. The flexible taxation, the macroeconomic stability, the skilled workforce, and the ease of doing business are among the key investment factors of Bulgaria.

The investment fields in Bulgaria are quite representative and foreign entrepreneurs can generate profits in sectors like tourism, real estate, agriculture, IT, or manufacturing, to name a few.

Having no complicated procedures for company formation in Bulgaria is another plus for foreigners in this country.

Here are some interesting facts and figures about the economy and business in Bulgaria:

• In terms of total FDIs, nearly USD 52 billion were registered in Bulgaria in 2019
• Bulgaria has one of the lowest corporate tax rates, established at 10%
• The 2020 Doing Business report ranked Bulgaria 61st out of 190 worldwide economies
• Most of the FDIs come from the Netherlands (17.3%), followed by Austria (9.6%), and Germany (6.8%)

We will navigate local laws and procedures for you

Even if the Bulgarian authorities concentrated more on the ways in which businesses can be easily incorporated, it is important to have the support of a dedicated team who can handle such aspects.

Some might find the investment legislation quite difficult or slightly different, so the assistance of a team of professionals is always the best way to go.

Our customers can rely on proficiency, transparency, experience, and professionalism when collaborating with our dedicated team.

Foreign and local entrepreneurs can request a call back or send us an email if they want to know more about how to open a branch in Bulgaria.

Foreign Branch Companies