Promising Outlook: Comparing Bulgaria with Cyprus for Company Formation

Any individual with innate entrepreneurial skills is likely to embark on the journey of business start-up anywhere in the world, provided that the decision promises long term benefits for the venture. In this respect, enterprising individuals prefer to thoroughly assess the rules and regulations of company formation internationally. For instance, Cyprus gained popularity among international entrepreneurs as a lucrative option for their company formation. This is a result of several advantages, such as:

  1. vRelatively free economic markets for business and trade
  2. vTax-free dividends
  3. vNo minimum-capital obligation
  4. vNo requirement of local nationality for business owners

Undoubtedly, entrepreneurs have reaped attractive benefits after forming a company in Cyprus but the interested individuals of current times should not keep a myopic view towards the options for business start-ups. There are several countries which should be explored and reviewed against one’s goals of forming a company in the near future. An outstanding example among profitable options is that of Bulgaria. Although some people may point out better business start-up features in Cyprus, the process requirement in Bulgaria also offers several investor-friendly terms. It has also become increasingly important to consider other developed and emerging countries like Bulgaria because of the recent economic crisis in Cyprus. Summarizing the catastrophic crisis faced by the Cyprus economy, the island country is unable to pay off its debt due to which the banking industry is nearly at a collapsing stage. As a result, existing businesses are seeking various crisis-management alternatives while potential business start-ups are experiencing a downfall.

On the contrary, Bulgaria offers a simple and transparent banking procedure for international business owners. The corporate accounts in the leading banks of Bulgaria adequately address the common needs of local and foreign individuals starting up a Bulgarian company.

In comparison to the banking sector of Cyprus, business owners feel stress-free with their bank transactions being securely performed locally within Bulgaria. This set up is definitely preferred over the alternative measures taken by Cyprus companies which require new accounts to be opened in geographically dispersed banks, such as the Seychelles, Grenadines, etc.

Apart from being relieved from the afore-mentioned hassles related to banking transactions for Cyprus companies, Bulgaria is becoming the center of attention for upcoming businesses because of the straightforward registration process. In addition, the legal terms also include clear-cut requirements allowing entrepreneurs to register their company in any of the following types of their choice:

Bulgarian Private Limited Company

The principle requirements for registering a limited liability company in Bulgaria include Memorandum of Association, appointment of managing or board of directors, and payment of authorized capital.

Joint Stock Company

Registering this type of a company requires 25% of the minimum share capital to be paid initially. Businessmen find this clause to be beneficial for them because they have up to 2 years to pay the remaining share capital. Another simple requirement is the appointment of a minimum of 3 board members only.

All in all, Bulgaria is a favourable option for business start-up opportunities mainly because of its attractive and uncomplicated requirements for company formation.

For more information on how to form a company in Bulgaria please don’t hesitate to contact the incorporation experts at Euro Company Formations