EU transport licence via Bulgarian haulier company registration

If you wish to register as a haulier transport company in Bulgaria and to operate on the territory of the entire European Union, you will need the Community License for road haulage.

This licence is granted by Bulgarian minister of transport, information technologies and communications through Transport Administration Executive Agency. In order to apply for a licence you need to incorporate a Bulgarian limited liability company or a sole proprietor with main activity carrying of goods for third parties, for hire or reward. read more

PSD2 license for payment institution, e-money and payment system providers in Bulgaria

E-money, payment institutions, payment systems, online payment system providers – at a first glimpse all these terms look similar, but in fact they refer to different issues regulated by:

  • Bulgarian Law on Payment Services and Payment Systems,
  • Directive 2007/64/EC of the European Parliament and of the Council of 13 November 2007 on payment services in the internal market (amending Directives 97/7/EC, 2002/65/EC, 2005/60/EC),
  • Directive 2009/110/EC of the European Parliament and of the Council of 16 September 2009 on the taking up, pursuit and prudential supervision of the business of electronic money institutions (amending Directives 2005/60/EC and 2006/48/EC and repealing Directive 2000/46/EC) and
  • Latest PSD2 Directive 2015/2366/EU of the European Parliament and of the Council of 25 November 2015 on payment services in the internal market, amending Directives 2002/65/EC, 2009/110/EC and 2013/36/EU and Regulation (EU) No 1093/2010, and repealing Directive 2007/64/EC.

The above documents regulate the requirements to the payment service providers which, apart from banks, inclusive European Central Bank and the national central banks of the member states, can be two types:

  • Payment institutions
  • Electronic money institutions

From 13 January 2018 all EU member states are obliged to apply the rules of PSD2. In October 2017 Bulgarian government proposed amendments to payment service legislation which are expected to be adopted by Parliament by the end of the year. Since new procedure and requirements have not been announced yet, the article below gives only basic guidelines on the matter based on current laws. read more

Registration of tour operators and travel agencies in Bulgaria

Bulgarian travel agency or tour operator businesses can be conducted only by Bulgarian companies that are listed in the Register of Tour Operators and Travel Agents, part of Bulgarian National Tourism Register. The registration is made with the Ministry of Economy, Energy and Tourism upon filing an application by the candidate together with a number of documents confirming that the applicant matches the criteria specified in Bulgarian Tourism Act and sub delegated legislation. Below we have summarized some of the basic registration requirements prescribed in Bulgarian Laws. read more

Company types in Bulgaria

Company types are more or less different around the world.When speaking about specifics of any desired corporate entity to be set up, investors should know that there are half dozen of different types of companies in The Republic of Bulgaria and the main criteria is the active trading quality – its lack or availability. The major possible forms of business entities in Bulgaria can and should be further divided into two main big groups: a) traders and b) non-traders. Traders who are involved in active deals or any other commercial activities can be divided into another further two groups (depending on the special relevant legal act regarding their business status): A1) Traders registered under the Commerce Act; and A2) Traders who are subject to regulation by specific laws. The forms of opening a company and running an active business outlined below might be divided once again into two groups: 1.  Commercial trading companies and 2. Other legal entities. There is also another group in which corporations are split into ‘normal’ (with two or more members) and single member trading companies. read more

Registered address of Bulgarian companies – local business address of registration

Any Bulgarian company should have its own registered address. This is a local postal address in Bulgaria which is used for business, fiscal and other purposes. The registered address of a newly formed or existing Bulgarian company is probably one of the most important legal questions in the process of Bulgarian company setup.

The very first thing to mention in this relation is that from legal point of view there is no such legal term as ‘business address’. The official legal term, according to Bulgarian Commerce Law, is ‘seat and registered address’ but practically registered, business, fiscal, postal, etc. address in practice means one and the same thing. read more

Dormant companies registration in Bulgaria

A dormant Bulgarian company is an inactive company that does not trade and hence does not have any accounting transactions recorded at all. Then why should anyone need such a company?

Well, the reasons for keeping such a company registered in Bulgaria may be different. A good reason to use a dormant Bulgarian company is if you have a trademark or a brand name that you wish to protect. In other cases, if you have an active Bulgarian company, but business is not doing well and you need a break, you can make your company dormant so as to reduce expenses to minimum and until waiting for a suitable moment to start trading again. read more

Payday loans license for short term loans direct lenders in Bulgaria

Contrary to the common European practice, Bulgarian Law of Consumer Credit Protection is not applicable for loans under BGN 400 (a little more than EUR 200) and in case the loan is for up to three months. Currently these loans are outside the scope of this protection law and there are no limits. Although the government has been considering changing the law, this has not happened up to date so any companies that work in the field of micro loans can take advantage of the delay in regulating these micro loans. Currently most companies offer such micro loans with around 35% monthly interest that makes more than 400% per annum, which is much more as compared to other European countries. read more

Costs for opening a cheap company in Bulgaria

How much does it cost to open a cheap Bulgarian company? – is maybe one of the first questions many foreign investors ask. And the answer is that the company formation procedure in Bulgaria involves different types of costs.

The first group of expenses represents the administrative ones. In other words all state fees fall into this category. The main expense here is the company registration tax which is in all cases due to the Bulgarian Commercial Register. One should also know and bear in mind that if this tax is paid electronically over the internet, then it is in lower amount. The other condition is that all paperwork is also submitted to the aforementioned register electronically. This task is very hard to achieve for foreign investors who are not in good command of Bulgarian language since the Trade Register’s interface in only in Bulgarian language. read more

Cross-border mergers of EU Ltd. companies in Bulgaria

It is well known that in most EU countries the current economic environment is unfavorable for enterprises. Bulgaria stays like oasis with its financial stability and low tax burden. Tempted by the good business climate in Bulgaria some EU corporations want to merge their European registered companies with a Bulgarian one by way of absorption so that the transferee company (a Bulgarian limited liability company) absorbs in itself the transferor company (the foreign company). This can be used as a legal mechanism for the transferor company  to move its registered office from any European state to Bulgaria. read more