The EOOD corporate form provides that the shareholder's liability towards creditors is limited to the amount of capital deposited in the company and therefore does not extend to the assets of the individual shareholder.
It is certainly the most recommended corporate form for example for IT professionals who wish to benefit from the Bulgarian corporate tax rate of 10%. But not only. The EOOD can also be used for the registration of a movable asset such as a boat or a company vehicle.
What are the main advantages?
The main advantages deriving from the establishment of a company in Bulgaria in EOOD form are multiple. Certainly the first is the tax one thanks to the fixed rate of 10% which applies to both the income of natural persons and that of legal persons, and this regardless of the annual income. Whether you earn 10 thousand euros per year or one million, anyone who opens a company in Bulgaria and (fundamentally) takes up Bulgarian residency always pays only 10% taxes. But not only. The minimum capital required for setting up a company in Bulgaria in EOOD format is practically zero, just 1 euro. Then there is the tax on dividends which is also negligible being set at 5%. If the company markets products or services to other countries in the EU area, VAT is 0%, just as there are no customs duties to pay if you export within the European Union. Finally, for those who want to look beyond just the European panorama, Bulgaria has already signed treaties against double taxation with over 70 countries around the world.
How to set up an EOOD company in Bulgaria?
Since the beginning of 2020, it is no longer possible to establish a joint-stock company in Bulgaria remotely by granting a power of attorney. The establishment of a new company in Bulgaria must be done in person and in particular the physical presence of the owner is required for the opening of a bank account (regardless of whether this occurs with an online or traditional bank). VR and Partners, a leading company in the sector supporting companies and professionals who want to transfer their business to Bulgaria, offers its "all-inclusive" services for the establishment of a new company in Bulgaria, taking care of all the legal needs , tax and logistics of its customer. Thanks to its roots in the territory and its contacts with local institutions, VR and Partners is able to guarantee the completion of the entire procedure in a few days (on average 2 or 3). Would you like to know more? Contact us per un preventivo gratuito e senza impegno.
