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Crypto-friendly company in Bulgaria: leading the charge in the Balkans!

5/9/2023 8:00:00 AM
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The financial world is quite interesting. There are plenty of options for businesspeople to make money and several activities to perform through a company. If you want to run a low-cost business in Europe, we have a great alternative in the Balkans: Bulgaria.

Moreover, today Mundo presents an opportunity to exploit the crypto industry. As we said before, there are plenty of businesses one can carry out: retail, brokerage, real estate, food production, manufacturing, and many others. 

In this case, a Bulgarian company can be your vehicle toward conducting a Bulgaria crypto business and taking advantage of this booming industry.

Benefits of having a Bulgarian company

In Bulgaria, you'll find lots of benefits to running any kind of business, no matter if it is based on crypto or on traditional operations. Here are some of the advantages that you'll find:

  • Bulgaria is one of the best jurisdictions to do business in Europe with the lowest corporate income tax (10%) in the European Union. It's definitely worth the look if you're trying to reduce costs.
  • In Bulgaria, you'll find that cryptocurrencies are not subject to VAT, which gives you a nice competitive edge, especially when compared with other jurisdictions.
  • Incorporation is quite accessible. The regulator doesn't ask for a large amount of money for you to set up your business. €1 is enough.
  • It's not mandatory to have a dedicated AML officer.
  • Audits are not required in Bulgaria.
  • Despite the fact that some services do pay VAT, Bulgaria is quite accessible with only a 20% VAT.
  • The dividend tax is as low as it can get with a 5% rate.
  • The personal income tax equals 10%, which makes Bulgaria a great jurisdiction if you want to run a low-cost business in Europe.

What types of services can you provide with a Bulgaria crypto business?

After undergoing the registration process of opening a company and acquiring the necessary license, you'll receive a certificate. This allows you to trade virtual currencies for Fiat money and vice versa, and you can also provide crypto wallet services. Thus, through your Bulgaria crypto business in Europe, you can offer the following:

  • Custodian services
  • Services that involve exchanging crypto for Fiat and vice versa
  • Virtual currency trading
  • Issuance of E-wallets

The authority in charge of granting this license is the country’s Central Office of the National Revenue Agency.

Doing crypto business in Bulgaria and enjoying a simple yet solid environment 

If you want to start a brand-new company the license will be ready in a 10-week period after you provide the correct documentation. If you want to speed things up and start your Bulgaria crypto business right away, there’s also the option to acquire a ready-made Bulgarian company. This can be ready in as little as eight days.

One of the main reasons to choose this jurisdiction is that you can register without large amounts of money. Only one euro will do so that you can have your low-cost business in Europe operating with crypto.

Another great possibility is setting up a bank account to support each crypto transaction and this can be done rather quickly, in two or three weeks.

More information

How to establish a Bulgarian company to run a crypto business and what it entails

When somebody opens a company, independently of what operations they conduct, it's important to know the requirements in advance. This applies not only to registration but also maintenance. 

This is why at Mundo we recommend doing thorough research in order to understand how exactly your business in Europe will work. Businesspeople must pay special attention if these businesses are about cryptocurrencies. 

Here are some guidelines and requirements that you should keep in mind:

  • You have to have at least one local director who can also be your contact person. Your Bulgarian company cannot be owned by a corporation but only by natural persons.
  • There are some substance requirements like having a registered office and a local account so that you can pay your tax obligations and the salaries.
  • The initial capital is only one euro.
  • The minimum shareholder number is 1, and this person can also be the managing director who must be a different person than the local director.

What documents do I need

When opening a company, the most important thing is to prove that you're reliable and that you don't have a criminal background. Also, you must prove that you are capable enough to run your company or crypto business. If you appoint somebody to run the business for you, you have to prove that this person is qualified. In many cases, opening a company, including a Bulgarian company, can require substance. 

All in all, these are the documents that you must submit and the requirements that you have to meet:

  • Certified copy of an ID (passport) for every essential person involved in the Bulgarian company.
  • Proof of address for these people. These can be a municipal tax bill, a bank statement that includes the address, or a utility bill. Such documents must be submitted in English or through a certified translation.
  • Every beneficial owner, shareholder, and director must present a curriculum vitae.
  • A brief description of the services that will be provided and the brand's website.

Thus, you can get ready for doing crypto business in Europe in a low-cost and safe environment. Choosing the ready-made companies means that you will have your business ready in eight days while establishing a new one takes approximately 10 weeks.

Disclaimer: always consult with a professional before making important financial or business decisions. This article is merely informative and should not be taken as legal advice.

Wrapping up your business in Europe

The old continent is usually economically stable and, undoubtedly, it has a very wide market. However, prices can be high, especially when it comes to taxes, operational costs, initial capital, and registration fees. Nonetheless, this is not the case in Bulgaria, a place where opening a company means earning money instead of losing it. Moreover, with its crypto-friendly corporate sector, Bulgaria might be a great jurisdiction for the 21st-century investor.

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