Set Up a Fintech Company in Bulgaria
Set Up a Fintech Company in BulgariaUpdated on Saturday 08th December 2018
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Bulgaria has seen an important development of the financial technology market, with areas like digital payment being the most attractive types of services. Our company formation lawyers in Bulgaria can help all investors interested in opening a business that activates in this field. Having proper legal aid when starting a business, especially for foreign investors, can mean that the company will be set up faster and will comply with all of the ongoing regulations for doing business.
Sofia and Plovdiv concentrate most of the IT development hubs and tend to be the preferred locations for opening this type of business. While the fintech ecosystem in Bulgaria is still under development, the evolution is promising and it is being driven by new generations of programmers who come up with innovative solutions for banking and financial services.
The payment industry is under a continuous development process, with many more buyers using their mobile phones for payment purposes and many Bulgarians using e-commerce websites, facilitated by a satisfactory internet connectivity in the country.
The Bulgarian fintech sector
Digital payments solutions make up most of the types of services offered by fintech companies in Bulgaria, however, entrepreneurs can explore a variety of different other sectors. Below, our company formation lawyers in Bulgaria present some of the target sectors for the fintech industry:
- Digital payment: modern payment solutions, complete with user-friendly digital wallets, aiming to make payments easier and at the same time more secure; target both online and offline payments.
- Loan services: solutions for an easier loan application; automated loan approval through special websites or apps with an accessible interface; user experience is simplified and made more attractive in most cases.
- Peer-to-peer investment: digital solutions for a more user-friendly investment platform with secure investment options and returns higher than for more investment instruments, in general; investment features can be personalized and an auto invest option can also be in place for investors who are targeting specific types of investment opportunities.
- Cryptocurrency: crypto wallets as well as crypto exchange platforms (for exchanging different types of currencies into a chosen type if virtual currency).
A rough analysis of the fintech landscape in Bulgaria shows that most of the companies operating in this business field offer services related to payment transactions and financing. Other areas include personal finance assistants and analysis, trading platforms, cryptocurrency-related services, insurance, expenditure tracking, fraud prevention, and risk management.
Fintech companies in Bulgaria focus on providing alternative solutions to banking services and banks in Bulgaria are responding in a positive manner to these solutions. Many have started to implement innovative solutions to their structures. The fact that this business sector is well received both by investors, financial institutions, government bodies, and the end user is promising for all those looking to set up a fintech company in Bulgaria.
Conditions for fintech companies in Bulgaria
Fintech companies in Bulgaria enjoy a low tax regime and lower labor costs compared to other western European countries. the presence of a talented workforce in the IT area is also a plus for investors.
Bulgaria harbors an important potential to become one of the main fintech markets in Eastern Europe and the region is an ideal location to base a business and test out new, innovative technologies because of the fact that the internet speed and adoption rate are high as well as the fact that the investment conditions and favorable, with lower costs in some areas, compared to central and western European countries.
The Bulgarian Fintech Association is a non-profit organization that supports this business sector and unites the main companies operating in this business field. Fintech investors can look towards the opportunities offered by the Association in terms of bringing together the companies and the parties with common interests in the financial technology sector.
Our team of company formation lawyers in Bulgaria can help investors open a company in the fintech sector. We are able to help during all of the company formation phases, from drawing up the Articles of Association to handling the applications for company registration. Once the business is registered, our team can provide ongoing assistance for tax compliance as well as legal counseling and representation.
Contact our law firm in Bulgaria for complete information about how we can assist investors who wish to open a company.