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Starting a business in Sliven follows the national legal framework of Bulgaria with some local administrative requirements that reflect municipal rules and permits. The main legal steps involve choosing a business form, preparing founding documents, registering the company in the national Commercial Register, obtaining necessary permits and registrations for tax and social contributions, and ensuring compliance with sector-specific regulation. Bulgaria applies a flat corporate tax rate and broadly harmonized EU rules for VAT, data protection and cross-border trade. Sliven-specific considerations typically relate to municipal permits, local zoning, environmental requirements and any industry-specific inspections carried out by regional authorities based in or near Sliven.
Forming a new business involves legal, tax and regulatory issues that are often complex. A lawyer can help in many situations including:
- Choosing the right legal form for liability protection, tax planning and future growth - for example sole trader, limited liability company or joint-stock company.
- Drafting and reviewing founding documents such as articles of association, shareholder agreements and partnership contracts.
- Preparing and filing registration documents with the Commercial Register and ensuring documentary compliance - notarization, translations and certified copies where required.
- Handling licensing and permitting - for regulated activities like food service, healthcare, transport, construction or environmental operations.
- Advising on employment contracts, social security and payroll obligations, and workplace policies that comply with Bulgarian labor law.
- Structuring initial financing - capital contributions, shareholder loans and banking formalities for capital deposits.
- Drafting commercial contracts, lease agreements and supplier/customer terms to protect your business interests.
- Ensuring tax compliance and structuring to reduce unexpected liabilities - VAT registration, corporate income tax, withholding tax matters.
- Managing disputes with partners, customers, suppliers or public authorities and representing you in administrative or court proceedings.
This section summarizes the key legal areas to know when forming a business in Sliven.
- Legal forms - Common structures are sole trader (ET), single-member limited liability company (EOOD), limited liability company (OOD), joint-stock company (AD), general partnership and limited partnership. The choice affects capital requirements, liability and governance.
- Registration - Companies are registered in the national Commercial Register administered by the Registry Agency. Registration requires a unique company name, articles of association or foundation act, details of the management bodies, registered office address and identification documents for founders. After registration the company receives a unique identification code (EIK).
- Minimum capital - For limited liability companies the minimum share capital is very low - commonly BGN 2. For joint-stock companies the minimum capital is substantially higher, typically BGN 50 000.
- Taxation - Bulgaria has a corporate income tax rate of 10 percent and a standard VAT rate of 20 percent. Businesses must register for VAT if turnover exceeds the statutory threshold in the previous 12 months - the threshold is generally around BGN 50 000 but you should confirm current figures before planning.
- Employment and social charges - Employment contracts, minimum wage rules, working time, sick leave and dismissal rules are governed by the Bulgarian Labor Code. Employers register employees with the National Revenue Agency and pay social security and health contributions. Employment law is protective of employees and procedural formalities must be followed for hiring and termination.
- Licensing and permits - Certain activities require sectoral licenses or permits from national or municipal authorities. Examples include food handling, construction permits, environmental permits, transport licenses and professional licenses.
- Municipal rules - The Municipality of Sliven regulates local issues such as commercial space use, construction permits, local taxes and fees, street trading permissions and land use plans. Zoning and local environmental requirements can affect where you locate your business.
- Consumer protection, competition and product rules - If you sell products or services, consumer protection law, product safety rules and competition rules apply. Packaging, labeling and warranty rules follow EU and national standards.
- Data protection - Businesses processing personal data must comply with the General Data Protection Regulation and Bulgarian data protection law. This includes obligations around legal basis for processing, data subject rights and security measures.
- Cross-border and EU rules - If you trade with other EU countries or hire EU nationals, EU rules on goods movement, VAT, cross-border services and freedom of establishment will be relevant.
For many small businesses a limited liability company (EOOD for a single owner or OOD for multiple owners) is preferred because it limits personal liability, has minimal capital requirements and flexible management. Sole trader status may be simpler and cheaper for very small operations, but it does not provide limited liability. Your choice should reflect tax objectives, liability tolerance and investor needs.
Registration timelines vary. If documents are complete and no special permits are required, registration with the Commercial Register can be completed in a few business days. If you need sectoral permits, municipal approvals, or foreign document legalization, the process can take several weeks to months. Using a local lawyer or service provider usually speeds up the process.
Bulgarian law does not generally require directors or shareholders to be Bulgarian residents or EU citizens. Foreign individuals and entities can own and manage companies. However, certain regulated activities may impose residency or qualification requirements. Non-EU nationals should also consider residency and tax implications of managing a Bulgarian company from abroad.
Initial costs include state fees for registration, notary fees for certified documents, costs for drafting founding documents, a bank fee for opening a capital deposit account (if required), translation and legalization of foreign documents, and professional fees for lawyers or accountants. Costs vary by business complexity and whether special permits are required.
You must register for VAT if your taxable turnover for the last 12 months exceeds the statutory threshold - typically around BGN 50 000 - or immediately if you provide services or goods that require mandatory VAT registration. You can also opt for voluntary registration before reaching the threshold. VAT obligations bring reporting and invoicing requirements that a lawyer or accountant can help manage.
Permits from the municipality commonly include business registration at the municipal level, permits for use of commercial premises, signage and advertising permits, local tax registrations, and construction or change-of-use permits for premises. Specific industries may need additional municipal approvals or inspections.
Protect trademarks, designs and inventions by registering them with the national or regional intellectual property authorities. Use confidentiality agreements for new ideas and contracts that clearly assign IP created by employees or contractors. A lawyer can guide the appropriate registrations and contract language.
You must prepare written employment contracts, register employees with the National Revenue Agency, adhere to statutory minimum wage, observe working time rules and maintain required social and health insurance contributions. You must also comply with anti-discrimination rules and workplace safety regulations. Labor law provides specific termination procedures and notice requirements.
Shareholder or partner disputes are usually addressed through negotiation first, then mediation or arbitration if an alternative dispute resolution clause exists in the founding documents. If unresolved, disputes can be brought before civil courts. Well-drafted shareholders agreements reduce the risk of future conflicts by setting decision-making processes and exit mechanisms.
Yes. Documents issued abroad typically need to be notarized and legalized or apostilled, and officially translated into Bulgarian. The exact requirements depend on the country of origin and whether Bulgaria recognizes apostilles from that country. A local lawyer or notary public can advise on the precise steps and assist with translations.
Useful organizations and bodies for new business formation in Sliven include:
- The national Commercial Register and Registry Agency - for company registration and extracts.
- National Revenue Agency - for tax registration, VAT and social security matters.
- Municipality of Sliven - for local permits, zoning and municipal fees.
- Bulgarian Chamber of Commerce and Industry and local chambers - for business advice, training and networking.
- Employment Agency - for hiring support and subsidies.
- Regional Inspectorate of Environment and Water and other sectoral inspectorates - for environmental and sector-specific permits.
- Bulgarian Patent Office - for intellectual property registrations.
- Local notaries, banks and certified translators - for document formalities and capital deposit procedures.
If you need legal assistance to form a business in Sliven, follow these practical steps:
- Prepare basic information - proposed company name, business activity description, planned address in Sliven, names and identification of founders, and an estimate of initial capital and personnel.
- Schedule an initial consultation with a Bulgarian lawyer experienced in company formation and local Sliven procedures. Ask about fixed fees, estimated timelines and what documents you should bring.
- Obtain or prepare required documents - identification, proof of address, power of attorney if someone will act on your behalf, and any professional certificates required for regulated activities. Arrange translations and notarization in advance if documents are foreign.
- Clarify tax and accounting setup - register with the National Revenue Agency, open a bank account, and decide on an accounting service provider to handle payroll, VAT and tax reporting.
- Address permits and local compliance - with your lawyer, identify any sectoral or municipal permits you will need and begin applications early.
- Sign an engagement letter with your lawyer that sets out the scope, fees and timetable. Keep a written record of all filings and receipts related to registration and permits.
Consulting a local lawyer early reduces risk and helps you move from concept to operation with fewer delays. If you are unsure how to select a lawyer, look for professionals with proven experience in Bulgarian company law, good references and familiarity with Sliven municipal procedures.
