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Setting Up Your Own Business In Bulgaria

Being a foreigner in Bulgaria is not such a scary word anymore which means that setting up a business here will not be mission impossible anymore. Since the country joined the EU in 2007, the government works hard to equalize the Bulgarian legislation with the European. There are few disadvantages in moving or starting your business here but also there are many advantages that we will mainly emphasize on in this article.

 

First and foremost, Bulgaria is known as one of the countries in the EU with the lower taxes payable by the businesses. The corporate tax also known as profit tax is 10% which in comparison with the UK, for instance is much lower. This aims to encourage the local small and average sized companies to develop their business. Another point in favor is the fact that when hiring an experienced Bulgarian professional here will also cost much less. Only for the record, the lowest salary from March 2013 was  BGN 533. When starting the business, you should also consider renting an office or a building depending on the size of your company. This may take some time to find the best place for you but you will not regret when you calculate the rent that you will have to pay. After joining the EU, the country is taking advantage of the benefits of being a member-state. The EU structural funds and programs are in great help of the local business and industry already.

However, we have to mention a few disadvantages of doing business in an Eastern European country. One of the biggest problems is bureaucracy which combines in it other issues which have to be avoided. The e-government has already been used by other countries and seems to work and save the people lining up before the desks. The Bulgarian government has already started the first steps in using such system which means that if you decide to set up your business here you might benefit from this in the next few years. Secondly, there are many qualified specialists in the country but you might experience the problem of finding your high-profile staff to meet all the requirements of your business. Do not be disappointed at first, just be patient and you will find the right people. As regards the accountancy, in comparison between the UK and Bulgaria, every company that is VAT registered is obliged to submit monthly their Tax declaration, while in the UK, you can choose between monthly, quarterly or annually. Of course, that might not be such a big disadvantage if you simply work with a qualified accountant to do your company's accountancy. Last but not least, the recent progress report of the EU commission on the situation in Bulgaria showed that we still have to fight the corrupt practices in the administration and change and strengthen the judicial system. The recommendation of the Commission is to continue the implementation by the judiciary and the police of the new laws.

Fees and Taxes

The government taxes and fees very much depend on whether your business requires any specific licenses and permissions to be started in the country. If you do not need those, the company constitution is an easy, quick and inexpensive procedure that only needs to be done by experienced and trusted solicitors. The Bulgarian Commercial Law regulates the constitution of the companies. Do not forget to consult with a lawyer that can give you all the necessary and specific for your case information before making your first steps in Bulgarian business.
Article written by www.bulgaria-legal.com/en