Establish a Joint Stock Company in Bulgaria

While a joint stock company in Bulgaria can be easily registered we do recommend you solicit proper
help and guidance from our company formation specialists in Bulgaria. We remind you that if you want to open a company in Bulgaria you may rely on our team. Below is information on this subject that can help you understand some of the formalities for the formation of this type of company in Bulgaria.

Quick Facts
Purposes of a joint stock company in Bulgaria	Dedicated to large investments and  projects in Bulgaria
Registration authority	Trade Register in Bulgaria
Legislation	Commercial Act, Article 188
Minimum share capital	BGN 50,000
Requirements for JSC in Bulgaria	– preparing Articles of Association, – opening a bank account, – registering for taxation and social contributions, – completing standard forms, – other formalities that can be explained by our agents.
Minutes of constitutive meeting required (YES/NO)	YES
Signature sample solicited for JSC registration in Bulgaria (YES/NO)	YES
Number of directors	At least one director is required for a joint stock company in Bulgaria.
Management	One-stage or two-stage management control system
Requirements for opening a bank account in Bulgaria	At least one of the directors should have residency in Bulgaria.
Board of executives meeting requirement	At least once per year
Corporate income tax rate in Bulgaria	10%
Dividend tax rate in Bulgaria	5%
Time frame for registration	Around 2 weeks
Working with our Bulgarian agents	We help international entrepreneurs register a joint stock company in Bulgaria by managing all the paperwork and procedures.

How to register a joint stock company in Bulgaria

The Commercial Register in Bulgaria is in charge of registering a joint stock company in the country, where the enterprise’s documents need to be provided, besides proof of the minimum share capital (BGN 50,000) and details about the company management and people in control of the JSC. Please consider the following documents and requirements when registering a joint stock company in Bulgaria:

• reserve a name for your JSC in Bulgaria,
• prepare the articles of association,
• open a bank account for the minimum share capital,
• register for social contributions.

Below is an infographic with details about joint stock companies in Bulgaria:

Steps to consider after a JSC incorporation in Bulgaria

A joint stock company incorporated in Bulgaria needs to register for VAT and solicit accounting and bookkeeping services. We remind you that the board of executives of a JSC in Bulgaria must meet at least once per year.  

Our Bulgarian team of company formation representatives can supervise the procedures as soon as you get in touch with us. If you want to set up a company in Bulgaria, we can help you with suitable guidance.

NOTE: our company also handles payroll, bookkeeping, HR administration, expert tax advice, and a series of financial reports, if requested. As for the costs of these services, they are established depending on the activities, the number of employees, and other aspects.

Initial paid capital of a joint stock company in Bulgaria

Paid-in capital should be at least 25% while the remaining part of the stocks needs to be paid within 2 years after the foundation of the joint stock company in Bulgaria,

Here is a video presentation that explains why joint stock companies are proper options for investors in Bulgaria:

About the Management of Bulgarian Joint Stock
Companies

Foreign entrepreneurs interested in opening a joint stock company in Bulgaria should know that there are two management options in this regard:

• one-stage management – the board of directors can make strategic decisions in the company, regardless of whether it is financial or all of the operations of the company in question. The shareholders are the ones who elect the managers of a joint stock company in Bulgaria, following a general meeting.
• two-stage management control system – the company has both a board of directors and a supervisory board. While the board of directors is responsible for daily management, the supervisory board, as its name suggests, supervises the activities of the managers of a JSC in Bulgaria. First of all, the board of directors must act in the interest of the company and the shareholders.

Regardless of the management structure chosen, joint stock companies in Bulgaria must respect all the legal and regulatory requirements imposed. In this sense, there is a need for regular shareholder meetings, correct financial records, and fulfilling tax and reporting obligations in Bulgaria.

How is accounting for JSC done in Bulgaria?

A joint stock company in Bulgaria requires several important accounting procedures. Here’s what this is about:

• Double-entry bookkeeping is required. As such, the maintenance of complete financial records and full compliance with local and international accounting standards is ensured.
• Mandatory audits are carried out with the help of audit firms registered in Bulgaria. This ensures integrity and compliance from a financial point of view.
• Financial reporting is done in full transparency and is significant for joint stock companies in Bulgaria. In this sense, the annual financial reports must be published and accessed by the general public.

About the Bulgarian Solely-Owned Joint Stock Company

Those interested in a solely owned joint stock company in Bulgaria should know that this structure can be registered and owned by a single person, but with a minimum share capital of BGN 50,000, as in the case of the classic entity. Here is how the registration is done in this case, specifying that those interested in company incorporation in Bulgaria can contact our local agents:

• The memorandum and articles of association are being drawn up.
• It should be appointed the director of the company should sign several declarations in this direction.
• It is necessary to open a bank account for the minimum share capital deposit and subsequent financial operations.
• Some standard forms provided by the Trade Register in Bulgaria are filled out.
• All declarations are legalized or signed in front of the notary.
• Then, the registration for tax payment and obtaining a VAT ID are required.

Normally, the solely-owned joint stock company in Bulgaria can be ready and established in just a few days, if all the documents are accepted by the authorities. Do not hesitate to contact one of our specialists to be able to benefit from support in terms of preparing the documents required by the authorities in Bulgaria.

Ready-made joint stock companies are available in Bulgaria

Foreign entrepreneurs have the opportunity to purchase ready-made joint stock companies in Bulgaria. This allows the registration formalities of this structure to be eliminated from the start. In this case, it is an already registered company, called a shelf company or ready-made company, with a VAT ID already issued and a bank account, in most cases. Buying a ready-made joint stock company in Bulgaria reduces the time that would otherwise be necessary for the preparation of documents, registration with local authorities, application for a Bulgaria VAT code, and many more.

Moreover, a ready-made joint stock company can be transferred in a maximum of 7 days, after which the new owners can change their name and activities, according to their preferences. In this case, we remind you that you can call our company formation agents if you want to buy a ready-made joint stock company and skip the classic registration formalities of a company.

What changes can you make in ready-made joint stock companies in Bulgaria?

Entrepreneurs benefit from flexibility regarding joint stock companies in Bulgaria. They can make changes in terms of:

• increasing or decreasing the capital,
• modifying the business name and/or registered business address,
• changing the ownership/managers, etc.

Moreover, those interested in the liquidation of a joint stock company in Bulgaria can benefit from the specialized assistance offered by our local agents. We specify that regardless of the changes made in a joint stock company in Bulgaria, authorization is needed so that our specialists can act on behalf of the business owners in question.

Why turn to us for opening a joint stock company in Bulgaria?

Starting a joint stock company in Bulgaria can be quite a complex process for foreign entrepreneurs who are in the business climate of this country for the first time. We can explain to our clients interested in business development in Bulgaria what are the formalities for opening a joint stock company, how to avoid business risks in this case, what tax planning can be implemented, and much more. We advise you to contact our team to learn more about what a joint stock company entails and how this business structure can be established.

Bulgaria, a good option for investments

Bulgaria is among the favorite business destinations of those who want to conduct their business in this part of Europe. Branches, subsidiaries, and joint stock companies can be established very easily and can benefit from a favorable tax system. Here are some facts about the Bulgarian economy:

• A GDP growth of around 3.4% was recorded in Bulgaria in 2022.
• The GDP growth of approximately 3.4% was largely supported by exports and solid private consumption.
• An increase of approximately 2.4% of the GDP in Bulgaria in 2024 is estimated.

Besides assistance in company formation, our accountants in Bulgaria have the necessary experience and can offer you the services you need for the business you want to develop or already have. We can also help entrepreneurs open a startup in Bulgaria at any time. Additional details and information about how to establish a joint stock company in Bulgaria can be obtained if you contact our experts in company formation in Bulgaria.