Set Up a Foundation in Bulgaria
Set Up a Foundation in BulgariaUpdated on Monday 20th November 2017
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The foundation is a legal entity set up by one or more individuals that have a certain purpose or goal. Traditionally, these foundations were established for charitable purposes, however, today foundations in Bulgaria may be formed for a variety of purposes from charity to the promotion of cultural activities and education.
In order to set up a foundation in Bulgaria entrepreneurs will need to observe the local registration as well as the particularities related to the foundation’s scope of activity.
The characteristics of the foundation in Bulgaria
The foundation in Bulgaria is a legal entity with a non-profit scope, that may perform activities for private or public interests. Both individuals and other companies in Bulgaria can set up a foundation and in most cases, this legal entity is set up by means of a donation.
What differentiates the foundation from other types of companies in Bulgaria is that the profits are not distributed amongst the founders and are merely used to perform the scope for which the foundation exists, which is clearly specified in the Articles of Association.
Special taxation regimes, incentives and, most importantly, exemptions are in place for foundations in Bulgaria. One of our attorneys in Bulgaria can give you up-to-date information on the taxation regime.
Set up process for a foundation in Bulgaria
All foundations operating in Bulgaria must be entered in the court register for non-profit organizations. This is performed with the District Court belonging to the city where the registered office of the foundation will be located, either in Sofia or another Bulgarian city. The second step is to register the foundation with the Bulgarian Business Register.
Foundations that are being set up for public benefit are also registered with the Central Register belonging to the Ministry of Justice.
Foundations in Bulgaria submit their annual accounts to the National Revenue Agency. Public benefit foundations are also required to submit annual reports to the Central Register.
One of the experts at our law firm in Bulgaria can help you with complete information about the status, obligations, and liabilities for a foundation in the country.
Contact us for more information and complete legal services in Bulgaria.