A joint stock company in Bulgaria is controlled by the management board (minimum three persons involved) where the stockholders are also the investors. Such an entity can be easily registered and we recommend you to solicit proper help and guidance from our company formation specialists in Bulgaria in this matter. We remind you that if you want to open a company in Bulgaria you may rely on our help and assistance.
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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.
Steps to consider after a JSC incorporation in Bulgaria
A joint stock company incorporated in Bulgaria needs to register for VAT, to obtain the EORI code from the National Customs Agency and to 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. We remind you that the company registration procedure in Bulgaria is an easy process that can be done within a few working days. 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.
Our accountants in Bulgaria have the necessary experience and can offer you the services you need for the company you own. Thus, we can take care of 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.
The main characteristics of a joint stock company in Bulgaria
According to the Commercial Act in Bulgaria, the share capital of a JSC established in the country involves the stocks, which are securities that prove the proprietor is part of the company. All shares of the initial capital must represent at least 25 % of their value and need to be paid. The remaining part of the stocks needs to be paid within 2 years after the foundation of the joint stock company in Bulgaria, this way excluding the possibility of declining the shareholder from the board.
How to manage a joint stock company in Bulgaria
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.
What does a solely-owned joint stock company mean in Bulgaria?
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 who 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. You can also be assisted in setting up a company in Bulgaria.
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.
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. We can also help entrepreneurs open a startup in Bulgaria at any time.