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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.
Both legal and economic experts, however, advise there is another method of moving a business. Instead of a cross-border merger, a new limited liability company is set up in Bulgaria where the foreign corporation is a sole shareholder of the newly formed Bulgarian company.