Amazon is the world’s largest online shop, a well-known e-commerce platform where people can sell or buy numerous and varied products, starting from clothing, electronics, music, games, applications and ending with grocery. With net sales of around $136 billion registered in 2016 from about 300 million account owners, Amazon is the proper place where companies can present, advertise and sell their goods and services. An Amazon store in Bulgaria can be easily set up if a person registers first a company, in order to legally sell the products. The proper method to start selling on Amazon is, first of all, to incorporate a limited liability company or a sole proprietorship, two of the preferred and suggested forms of businesses in Bulgaria. In this matter, our company formation agents in Bulgaria can offer support in registering your company and opening your Amazon store.
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How you can set up an Amazon store in Bulgaria
In order to legally start a business through an Amazon store in Bulgaria, entrepreneurs are recommended to register a company in Bulgaria by respecting the local rules and regulations in this matter. An LLC (limited liability company), or the OOD (Drujestvo s Ogranichena Otgovornost) as it is known, is a suitable business entity which can be set up easily in Bulgaria with complete assistance and support from our Bulgarian specialists in company incorporation. The Bulgarian Trade Register issues the certificate of incorporation for all types of companies in the country, once the documents and other requirements have been fulfilled.
We mention that, for selling goods and services through an Amazon store in Bulgaria, one must generate invoices for clients, and this can be done only by registering an LLC or other type of company first. Through an Amazon store in Bulgaria, a business person can sell his/her products and services, and furthermore, he/she can advertise the business on Amazon with the help of the advanced online platform and varied tools.
If you have decided on business in Bulgaria, we suggest you contact our team of accountants in Bulgaria. They have the necessary experience to deal with payroll, audits, bookkeeping, annual financial statements, tax registration, and implementation of tax minimization options. We are at your disposal if you want risk assessment and evaluation for your company. We mention that the costs for these services are calculated depending on the size of the company, the number of employees, activities, etc.
Taxes in Bulgaria
Just like most of the countries worldwide, Bulgaria aligns and respects the rules and regulations in matters of taxation, but consider that there are also exemptions for different kind of activities established on the Bulgarian territory. We mention that the corporate tax rate is set at 10%, but investment companies with special purposes are exempt from such taxation.
The same is available for collective investment schemes which are admitted to a public offering in Bulgaria. Regarding other taxes, one should consider the capital gains tax rate which is set at 10%, the withholding tax of 5% for dividends, and 10% for royalties and interests, and a general VAT of 20%. The real estate annual tax is set between 0.01% and 0.45%, but one should also consider the mandatory social security contributions imposed for employers and employees in Bulgaria.
Opening a bank account in Bulgaria
The money for each product sold on an Amazon store in Bulgaria is automatically delivered to a bank account which is connected to your LLC or other type of company. A corporate bank account in Bulgaria should be set up when registering the OOD and providing the minimum share capital. Please consider that a bank account in Bulgaria can be opened for the local currency and several other currencies, which is a recommended method especially when opening an Amazon store, in order to give clients the possibility of paying in their local currency.
Registering a company in Bulgaria and opening an Amazon store can be a less time-consuming process for which our advisors can provide help.
The benefits of working from Bulgaria
In recent years, the Bulgarian economy strengthened with the help of main industries and the investments from abroad. Bulgaria offers low taxation and even tax exemptions for startups among many other incentives and governmental programes, therefore, starting a business in Bulgaria can be beneficial for both entrepreneurs and country. Furthermore, a company in Bulgaria can also develop through an Amazon store which can be easily set up if all the requirements are attentively considered and respected.
Online payment methods for your Amazon store in Bulgaria
Having an Amazon store in Bulgaria requires the implementation of the online payment methods for clients. In this matter, you can set up a PayPal or a merchant account. A PayPal account is a payment system linked to your bank account and used for payments made through a virtual shop or through an Amazon store. This payment method allows clients to send their money from their personal bank accounts to your business account when purchasing an item. As for a merchant account, this is a bank account opened by a financial institution in Bulgaria which allows online payments for customers who can pay for goods/services with the help of a credit or debit card by only introducing the related data.
As a short conclusion, foreign investors who want to start their activities in Bulgaria, and especially with the help of an Amazon store, should consider opening a company and set up the online payment methods, respecting the Bulgarian legislation.
If you are interested in opening an Amazon store in Bulgaria and sell products, or if you are interested in opening any other kind of company, we invite you to contact our team of company formation agents in Bulgaria for complete assistance.