Why you should register a company in EU, Bulgaria?
According to Forbes among the top 10 cities around the world to launch your startup business is Sofia, Bulgaria. Behind the blare of Berlin, Beijing, Moscow and London, the Bulgarian start-up scene is set to become a center for seed investment and start-ups in South East Europe.
A Bulgarian limited liability company can be incorporated within one week, with a minimum of one shareholder and one director, who can be of any nationality and place of residence. Conveniently, the minimum paid up share capital is only €1 and there is an option for a Client not to travel to complete Bulgaria business setup.
Registering a business in Bulgaria enables Clients to minimize tax because:
1. Bulgaria’s corporate tax rate is a flat 10% on global profits, the second lowest in the EU. See the global corporate tax page for more details on corporate tax rates in Europe.
2. Withholding tax on interest payments is low at i) 5% within the European Economic Area and ii) 10% to all other countries unless reduced by a double-tax treaty.
3. Bulgaria boasts VAT refund agreements with 10 countries outside of EU.
4. Tax losses can be carried forward up to 5 years.
5. Licensed real estate investment trusts (REITs) are fully tax-exempt.
6. Companies incorporated in municipalities with higher level of unemployment can receive up to 100% tax retention.
7. VAT registration is not mandatory under €25,000 annual turnover of taxable goods.
Bulgaria is a prime setup location for Clients running a manufacturing business in Europe and the Middle East:
1. Because of its EU membership and free trade agreements, Bulgaria enables manufacturing businesses to reach to: 500 million duty-free EU market.
80 million duty free Turkey market
booming Middle Eastern markets.
2. Labor costs are the second lowest in Europe, according to Eurostat. Average monthly skilled labor salaries are recorded at €700 and unskilled labor at €400. The monthly minimum wage is only €220.
3. Skilled workers are also available, with a strong backgrounds in engineering, sciences and languages.
4. Almost every young person in Bulgaria speaks English.
5. Tax holidays of up to 5 years are available to qualifying manufacturing projects under the Corporate Income Tax Act.
6. Electricity costs in Bulgaria are estimated to be 30% lower than the standard EU rates. Standard KwH for corporates is just €0,165 per hour.
7. Bulgaria is a great place for companies selling products and services to the automobile industry. Large EU companies like i)Witte ii) Montupet and iii) others car parts suppliers have relocated their factories to Bulgaria. The only Chinese car manufacturer in the EU – Great Wall Motors – chose Bulgaria to setup their factory.
Contact me at email@example.com to introduce you to Innovires legal & business consulting firm