{"id":134888,"date":"2026-04-07T12:07:17","date_gmt":"2026-04-07T12:07:17","guid":{"rendered":"https:\/\/my.legal500.com\/guides\/?post_type=comparative_guide&#038;p=134888"},"modified":"2026-04-07T12:07:17","modified_gmt":"2026-04-07T12:07:17","slug":"bulgaria-doing-business-in","status":"publish","type":"comparative_guide","link":"https:\/\/my.legal500.com\/guides\/chapter\/bulgaria-doing-business-in\/","title":{"rendered":"Bulgaria: Doing Business In"},"content":{"rendered":"","protected":false},"template":"","class_list":["post-134888","comparative_guide","type-comparative_guide","status-publish","hentry","guides-doing-business-in","jurisdictions-bulgaria"],"acf":[],"appp":{"post_list":{"below_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">Dinova, Rusev &amp; Partners<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/my.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2026\/03\/drp-new-logo_large.jpg\"\/><\/span><\/div>"},"post_detail":{"above_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">Dinova, Rusev &amp; Partners<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/my.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2026\/03\/drp-new-logo_large.jpg\"\/><\/span><\/div>","below_title":"<span class=\"guide-intro\">This country specific Q&amp;A provides an overview of Doing Business In laws and regulations applicable in Bulgaria<\/span><div class=\"guide-content\"><div class=\"filter\">\r\n\r\n\t\t\t\t<input type=\"text\" placeholder=\"Search questions and answers...\" class=\"filter-container__search-field\">\r\n\t\t\t<\/div>\r\n\r\n\t\t\t\r\n\r\n\r\n\t\t\t<ol class=\"custom-counter\">\r\n\r\n\t\t\t\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is the system of law in your jurisdiction based on civil law, common law or something else?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Bulgaria operates under a civil law legal system. Legislation is codified, and the judiciary follows statutory law rather than legal precedents.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the different types of vehicle \/ legal forms through which people carry on business in your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p><strong>1. General Partnership (abbreviation in Bulgarian language: SD)<\/strong><\/p>\n<p>Liability: Formed by two or more persons who carry out commercial transactions under a common company name. All partners are jointly and severally liable with their entire personal assets for the company&#8217;s debts.<\/p>\n<p>Best For: Small family businesses where partners have high mutual trust.<\/p>\n<p><strong>2. Limited Partnership (abbreviation in Bulgarian language: KD)<\/strong><\/p>\n<p>Liability: Consists of two types of partners:<\/p>\n<p>General Partners: Unlimitedly liable for the company&#8217;s obligations with their entire personal assets. They manage and represent the company<\/p>\n<p>Limited Partners: Liable only up to the amount of their agreed contribution. They do not have representation powers and do not participate in the management of the company.<\/p>\n<p>Best for: Specific business operations where it is important to distinguish between management and financial participation by the partners, i.e. allows the attraction of capital without participation in the management.<\/p>\n<p><strong>3. Limited Partnership with Shares (abbreviation in Bulgarian language: KDA)<\/strong><\/p>\n<p>Structure: A hybrid between a Limited Partnership and a Joint Stock Company.<\/p>\n<p>Consists of two types of partners:<\/p>\n<p>General Partners: at least one general partner unlimitedly liable for the company&#8217;s obligations with their entire personal assets<\/p>\n<p>Limited Partners: at least three limited partners chosen by the general partners. Shares are issued for the contributions of the limited partners only.<\/p>\n<p>Registration Capital: Minimum required registration capital is 25,000 EUR.<\/p>\n<p>The General Meeting consists of all partners.<br \/>\nManagement: Managed by a Board of Directors, but general partners usually hold the right to manage and represent the firm.<\/p>\n<p><strong>4. Variable Capital Company (abbreviation in Bulgarian language: DPK)<\/strong><\/p>\n<p>Purpose: Specifically designed for startups and innovative businesses to provide maximum flexibility.<\/p>\n<p>Key Feature: The capital is not fixed and is not announced in the Commercial Register. There is no requirement for minimum capital. It can be increased or decreased based on the company&#8217;s needs without administrative registration for these changes in the public Commercial Register.<\/p>\n<p>Restrictions: Available only to micro and small enterprises (less than 50 employees and an annual turnover and\/or assets under EUR 2,045,167).<\/p>\n<p>Liability: Partners have limited liability, like partners in a limited liability company (OOD).<\/p>\n<p>Shares: the company can issue various instruments, such as share options for employees.<\/p>\n<p><strong>5. Sole Proprietor (abbreviation in Bulgarian language: ET)<\/strong><\/p>\n<p>Status: A natural person carrying out business in their own name.<\/p>\n<p>Liability: Unlimited personal liability for all business debts.<\/p>\n<p><strong>6. Limited Liability Company (abbreviation in Bulgarian language: OOD or EOOD)<\/strong><\/p>\n<p>Purpose: The most popular form for small and medium-sized businesses and the standard choice for foreign investors in Bulgaria.<\/p>\n<p>Key Feature: It combines the personal element of a partnership with the limited liability of a corporation. Decisions are made by the General Meeting of partners. The company is represented by one or more managers appointed by the General Meeting.<\/p>\n<p>Restrictions: Can be founded by one or more persons. Partners could be natural persons or legal entities. There are no specific restrictions on the number of employees or turnover.<\/p>\n<p>Liability: Partners are liable for the company&#8217;s obligations only to the extent of their contribution to the company&#8217;s registered capital.<\/p>\n<p>Shares: The capital is divided into &#8220;quotas&#8221; (shares), which are not tradable on the stock exchange. Transferring shares to a third party requires a notarized contract and approval from the General Meeting.<\/p>\n<p>Capital: Minimum required capital is 1 EUR<\/p>\n<p><strong>7. Joint Stock Company (abbreviation in Bulgarian language: AD or EAD)<\/strong><\/p>\n<p>Purpose: Designed for large-scale businesses, capital-intensive projects, and companies intending to be listed on the stock exchange.<\/p>\n<p>Key Feature: The company\u2019s capital is divided into shares, which can be freely traded. It has a more rigid management structure, suitable for separating ownership from management.<\/p>\n<p>Restrictions: No restrictions on the size of the enterprise, but it can be subject to stricter reporting and audit requirements.<\/p>\n<p>Liability: Shareholders are not liable for the company&#8217;s debts; they only risk the value of the shares they have purchased.<\/p>\n<p>Shares: the company can issue various types of shares (ordinary, preferred, voting, non-voting). Shares are easily transferable compared to an OOD.<\/p>\n<p>Capital: Minimum required capital is 25,000 EUR. At least 25% of the nominal value of each share must be paid in upon incorporation.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Can non-domestic entities carry on business directly in your jurisdiction, i.e., without having to incorporate or register an entity?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes, non-domestic entities can operate through a Branch or a Trade Representation Office (TRO)<\/p>\n<p>Branch: Not a separate legal entity; the parent company is fully liable for its obligations. It must be registered in the Commercial Register and can perform commercial activities.<\/p>\n<p>Trade Representation Office: Registered with the Bulgarian Chamber of Commerce and Industry (BCCI). It is non-commercial and intended for marketing, promotion, and representation only; it cannot generate revenue.<\/p>\n<p>If a non-domestic entity carries on business activities in Bulgaria, without registering a branch or a trade representation office, there is a risk of constituting a permanent establishment which may trigger tax implications.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any capital requirements to consider when establishing different entity types?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>OOD (Limited Liability Company): Minimum capital of 1 EUR.<\/p>\n<p>AD (Joint Stock Company) and KDA (Limited Partnership with Shares): Minimum capital of 25,000 EUR, with at least 25% paid in upon registration.<\/p>\n<p>DPK (Variable Capital Company): No fixed minimum capital; it is variable and is not subject to announcement, it is managed by the company\u2019s internal rules.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How are the different types of vehicle established in your jurisdiction? And which is the most common entity \/ branch for investors to utilise?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Process: Established via registration in the Commercial Register. The process typically takes 1\u20132 weeks once documents (Articles of Association, bank certificate, and notarized signatures) are submitted.<\/p>\n<p>The general set of documents for registration purposes are:<\/p>\n<ul>\n<li>Articles of Association\/ Constituent Act;<\/li>\n<li>Resolution of the founder\/s to incorporate the company and appoint manager\/s, Board of Directors;<\/li>\n<li>Declarations by the representative of the company required by law, including specimen of the signatures in notary certified form;<\/li>\n<li>Certificates of Good Standing of the founding companies, if any;<\/li>\n<li>Proof for paid in initial capital (except for the Variable Capital Company).<\/li>\n<\/ul>\n<p>The incorporation is effective as of the date of registration of the company with the Commercial Register.<\/p>\n<p>Most Common: The Limited Liability Company (OOD) is the most frequent choice for foreign investors due to its low capital requirements, limited liability, and simplified administrative requirements. Joint Stock Company is another preferred option for investors.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How is the entity operated and managed, i.e., directors, officers or others? And how do they make decisions?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>OOD: Managed and represented before third parties by one or more Managers appointed by the General Meeting of partners or the sole owner of the capital. Decisions on fundamental changes require resolutions taken by the General Meeting of the partners or the sole owner of the capital.<\/p>\n<p>AD: Can follow a One-tier management system (General Meeting of the shareholders and Board of Directors) or Two-tier management system (General Meeting of the shareholders, Management Board and Supervisory Board). Decisions are made by the respective boards, with high-level oversight by the General Meeting of shareholders.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there general requirements or restrictions relating to the appointment of (a) authorised representatives \/ directors or (b) shareholders, such as a requirement for a certain number, or local residency or nationality?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>No residency or nationality requirements. However, Bulgarian legislation requires that any trader established in Bulgaria whose statutory representative is not a Bulgarian citizen appoints and announces with the Commercial Register a contact person for anti-money laundering purposes, which is a Bulgarian resident.<\/p>\n<p>Competence: Directors must be legally capable (deed of consent and specimen signature required). A person may not be a director or a member of a board if that person has been a member of a management or supervisory body of a company that has been dissolved due to insolvency within the two years preceding the date of the decision declaring insolvency, provided that there are unsatisfied creditors.<\/p>\n<p>For Joint Stock Company (AD): There are certain requirements regarding the minimum number of members of a company\u2019s Board of Directors (between 3 and 9), Management Board (between 3 and 7) and Supervisory Board (between 3 and 9).<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Apart from the creation of an entity or establishment, what other possibilities are there for expanding business operations in your jurisdiction? Can one work with trade \/commercial agents, resellers and are there any specific rules to be observed?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes. Businesses can expand through commercial agents, distributors, franchise agreements, outsourcing arrangements, or joint ventures. Commercial agency relationships are regulated by the Commercial Act and EU law, providing mandatory protections for agents (including termination indemnities). Distribution and reseller agreements are not specifically regulated but subject to competition law regulation, including EU antitrust rules.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any corporate governance codes or equivalent for privately owned companies or groups of companies? If so, please provide a summary of the main provisions and how they apply.<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>There is no mandatory corporate governance code for privately held companies. Governance rules are mainly set out in the Commercial Act and the company\u2019s Articles of Association. A voluntary National Corporate Governance Code exists but primarily applies to publicly listed companies.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the options available when looking to provide the entity with working capital? i.e., capital injection, loans etc.<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Working capital may be provided through:<\/p>\n<p>&#8211; Capital contributions resulting in capital increases<\/p>\n<p>&#8211; Shareholder loans (additional monetary contributions)<\/p>\n<p>&#8211; Bank financing and credit facilities<\/p>\n<p>&#8211; Intra-group loans<\/p>\n<p>&#8211; Convertible loans (commonly used in startups)<\/p>\n<p>&#8211; Capitalization of profit<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the processes for returning proceeds from entities? i.e., dividends, returns of capital, loans etc.<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Returns can be made via:<\/p>\n<ul>\n<li>Dividend distributions (subject to approval of annual financial statements)<\/li>\n<li>Repayment of shareholder loans<\/li>\n<li>Reduction of registered capital (subject to creditor protection rules)<\/li>\n<\/ul>\n<p>Dividends are usually paid annually and are subject to withholding tax where applicable.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are specific voting requirements \/ percentages required for specific decisions?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes. Ordinary matters usually require a simple majority. Fundamental decisions (amendments to Articles of Association, capital changes, mergers, liquidation) require qualified majorities, typically between 2\/3 and 3\/4 of the capital, depending on the entity type. There are some temporary exceptions to these rules in the qualified majority due the Euro conversion following entry of Bulgaria in Euro zone when there is a change of capital within 5%.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are shareholders authorised to issue binding instructions to the management? Are these rules the same for all entities? What are the consequences and limitations?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Generally, no. Management bodies must act independently and, in the company\u2019s, best interest. Shareholders may influence strategy through resolutions of General Meetings but cannot issue binding instructions on day-to-day management. Breach may lead to liability of managers.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the core employment law protection rules in your country (e.g., discrimination, minimum wage, dismissal etc.)?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Key protections include:<\/p>\n<p>&#8211; Prohibition of discrimination<\/p>\n<p>&#8211; Statutory minimum wage<\/p>\n<p>&#8211; Maximum working time and paid leave; maternity and paternity leave;<\/p>\n<p>&#8211; Health and safety obligations;<\/p>\n<p>&#8211; Strong rules for termination of employment contracts and protection against unlawful dismissal;<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">On what basis can an employee be dismissed in your country, what process must be followed and what are the associated costs? Does this differ for collective dismissals and if so, how?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Dismissal is allowed on statutory grounds such as redundancy, misconduct, lack of qualifications, or business closure. A formal written notice and justification are required. Unlawful dismissal may lead to reinstatement and compensation (up to 6 months\u2019 salary). Collective dismissals trigger additional consultation obligations.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Does your jurisdiction have a system of employee representation \/ participation (e.g., works councils, co-determined supervisory boards, trade unions etc.)? Are there entities which are exempt from the corresponding regulations?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes. Trade unions and employee representatives may be elected. Works councils exist in larger enterprises. Small employers may be exempt from certain representation requirements.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there a system governing anti-bribery or anti-corruption or similar? Does this system extend to nondomestic constellations, i.e., have extraterritorial reach?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes. Criminal and administrative laws prohibit bribery and corruption. These rules apply to domestic and foreign entities, including acts committed abroad that affect Bulgarian interests. The companies are under strict anti-money laundering rules and compliance procedures.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What, if any, are the laws relating to economic crime? If such laws exist, is there an obligation to report economic crimes to the relevant authorities?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Economic crimes such as fraud, embezzlement, tax evasion, and money laundering are criminal offences. Certain entities and professionals have mandatory reporting obligations.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How is money laundering and terrorist financing regulated in your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Regulated under the Anti-Money Laundering Act and Anti-Terrorist Financing Act, aligned with EU directives. Obliged entities must conduct KYC, risk assessments, and report suspicious transactions.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there rules regulating compliance in the supply chain (for example comparable to the UK Modern Slavery Act, the Dutch wet kinderarbeid, the French loi de vigilance)?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>There is no standalone modern slavery act, but labour, criminal, and due diligence rules apply. EU-level supply chain and ESG regulations increasingly apply to Bulgarian entities. There is a rich array of legislation prohibiting and regulating the labor of minors.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Please describe the requirements to prepare, audit, approve and disclose annual accounts \/ annual financial statements in your jurisdiction.<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Annual financial statements must be prepared under national or IFRS standards, approved by shareholders, and filed with the Commercial Register by end of September the following year. Medium and large companies are subject to mandatory audits.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Please detail any corporate \/ company secretarial annual compliance requirements?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Key obligations include:<\/p>\n<p>&#8211; Filing annual financial statements with the Commercial Register;<\/p>\n<p>&#8211; Updating Commercial Register entries within 7-day term after the corporate change;<\/p>\n<p>&#8211; Maintaining shareholder and management records<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there a requirement for annual meetings of shareholders, or other stakeholders, to be held? If so, what matters need to be considered and approved at the annual shareholder meeting?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes. Regular annual General Meetings must approve financial statements, dividend distribution, and management discharge, as well as appointment of auditors if required by law.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any reporting \/ notification \/ disclosure requirements on beneficial ownership \/ ultimate beneficial owners (UBO) of entities? If yes, please briefly describe these requirements.<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes. Ultimate beneficial owners must be disclosed in the Commercial Register and updated upon changes.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What main taxes are businesses subject to in your jurisdiction, and on what are they levied (usually profits), and at what rate?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p><strong>Corporate Income Tax (CIT):<\/strong><br \/>\nLevied on taxable profits at a flat rate of 10%.<\/p>\n<p><strong>Value Added Tax (VAT):<\/strong><br \/>\nLevied on the supply of goods and services and imports. The standard rate is 20%, with reduced rates applicable to certain specific supplies.<\/p>\n<p>Withholding Taxes:<br \/>\nA 5% withholding tax applies to dividends distributed to individuals and non-resident entities, unless reduced or exempt under EU law or an applicable double tax treaty. Certain payments to non-residents (e.g. interest, royalties, technical services) may be subject to 10% withholding tax, subject to treaty relief.<\/p>\n<p><strong>Social Security and Health Insurance Contributions:<\/strong><br \/>\nLevied on employment income, shared between employer and employee, with aggregate contribution rates of approximately 32\u201333%, subject to statutory caps.<\/p>\n<p><strong>Local Taxes and Fees:<\/strong><br \/>\nIncluding real estate tax, waste collection fees, and vehicle tax, levied by municipalities.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any particular incentive regimes that make your jurisdiction attractive to businesses from a tax perspective (e.g. tax holidays, incentive regimes, employee schemes, or other?)<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes.<\/p>\n<p>&#8211; Investment Incentives: These include tax holidays, possible reduction of effectively paid corporate tax , or cash grants to encourage big investments.<\/p>\n<p>&#8211; Specific incentives targeted at less-developed or economically lagging regions to balance growth, often provided through subsidies, lower taxes, or infrastructure support for companies locating there.<\/p>\n<p>&#8211; Favourable Flat Tax Rates: flat low-percentage corporate tax.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any impediments \/ tax charges that typically apply to the inflow or outflow of capital to and from your jurisdiction (e.g., withholding taxes, exchange controls, capital controls, etc.)?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In Bulgaria, there are no exchange controls or capital controls, and capital may be freely transferred in and out of the country.<\/p>\n<p>Tax charges may apply in the form of withholding taxes, most commonly:<\/p>\n<p>5% withholding tax on dividends paid to non-resident shareholders (often reduced or eliminated under EU law or double tax treaties);<\/p>\n<p>10% withholding tax on certain payments to non-residents (e.g. interest, royalties, technical services), subject to treaty relief.<\/p>\n<p>Any capital exceeding certain thresholds is subject to declaration to the Bulgarian National Bank for statistical purposes only.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any significant transfer taxes, stamp duties, etc. to be taken into consideration?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Bulgaria does not impose stamp duties or general transfer taxes.<\/p>\n<p>However, notarial fees, state registration fees, and local taxes may apply to specific transactions, most notably transfers of real estate, motor vehicles, or other registrable assets. These costs are generally moderate and transaction-specific.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any public takeover rules?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes, applicable to publicly listed companies under securities legislation.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there a merger control regime and is it mandatory \/ how does it broadly work?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes. Mandatory notification applies if turnover of the participating companies thresholds are met. Clearance by the Bulgarian Commission for Protection of Competition is required before completion. Recent amendments in the law introduce the possibility for companies to voluntarily notify the competition authority of a planned concentration, even if the mandatory thresholds are not met, to obtain legal certainty and reduce regulatory risk.<\/p>\n<p>Moreover, the authority will be empowered to require a post-closing notification within 6 months, where the participating companies\u2019 combined turnover exceeds certain amount and there are indications of potential competition concerns.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there an obligation to negotiate in good faith?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes, under general contract law principles.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What protections do employees benefit from when their employer is being acquired, for example, are there employee and \/ or employee representatives\u2019 information and consultation or co-determination obligations, and what process must be followed? Do these obligations differ depending on whether an asset or share deal is undertaken?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p><strong>&#8211; Asset deals:<\/strong><br \/>\nWhere a transfer of undertaking occurs, employees automatically transfer to the buyer on existing terms and conditions. The buyer assumes all employment rights and obligations. Employees (or their representatives) must be informed and, where measures are envisaged, consulted in advance. Dismissals solely due to the transfer are not legal.<\/p>\n<p><strong>&#8211; Share deals:<\/strong><br \/>\nIn a share acquisition, the employer remains unchanged. Employment contracts are not affected, and no automatic information or consultation obligations arise unless post-acquisition measures impacting employees are planned.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Please detail any foreign direct investment restrictions, controls or requirements? For example, please detail any limitations, notifications and \/ or approvals required for corporate acquisitions.<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Limited sector-specific restrictions exist (e.g. defence, energy). Certain investments require approval by the Interdepartmental Council for Screening of Foreign Direct Investments.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Does your jurisdiction have any exchange control requirements?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Capital movements are generally free. Any capital transferred from\/ to another country exceeding certain thresholds is subject to declaration to the Bulgarian National Bank for statistical purposes only.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the most common ways to wind up \/ liquidate \/ dissolve an entity in your jurisdiction? Please provide a brief explanation of the process.<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Companies in Bulgaria may cease to exist through several legal mechanisms, depending on their circumstances and strategic objectives:<\/p>\n<ul>\n<li>voluntary liquidation, initiated by a shareholders\u2019 resolution and registered with the Commercial Register, typically taking between six months and one year. Recently, a fast-track liquidation procedure has also been introduced, allowing for a quicker process under specific conditions.<\/li>\n<li>insolvency proceedings, initiated either by the company itself or by a creditor in cases of insolvency or over-indebtedness. These court-led proceedings can be lengthy, particularly where multiple creditors are involved.<\/li>\n<\/ul>\n<p>A company may also be terminated without liquidation through a merger, where it is absorbed into another entity, with the process generally completed within approximately six months.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\r\n<div class=\"word-count-hidden\" style=\"display:none;\">Estimated word count: <span class=\"word-count\">3541<\/span><\/div>\r\n\r\n\t\t\t<\/ol>\r\n\r\n<script type=\"text\/javascript\" src=\"\/wp-content\/themes\/twentyseventeen\/src\/jquery\/components\/filter-guides.js\" async><\/script><\/div>"}},"_links":{"self":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide\/134888","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide"}],"about":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/types\/comparative_guide"}],"wp:attachment":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/media?parent=134888"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}