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Starting a business in Targovishte follows the same legal framework that applies across Bulgaria, with some local administrative steps handled at municipal level. The national legal structure covers company types, registration procedures, tax and accounting obligations, employment law and sectoral regulation. In Targovishte you will interact with the national Registry Agency for company registration and with local municipal offices for permits, local tax matters and municipal services. New entrepreneurs must comply with national laws such as the Commerce Act, the Accountancy Act, the Corporate Income Tax rules and the Labor Code, while also meeting any sectoral licensing or local permit requirements that apply to their planned activity.
A lawyer can add value at many stages of new business formation. Common situations where legal help is useful include choosing the right legal form for tax, liability and management goals; drafting and reviewing founding documents, shareholder agreements and partner contracts; negotiating and checking leases or purchase agreements for premises; ensuring compliance with regulated-activity licensing such as food, construction or transport; advising on employment contracts and termination rules under the Labor Code; helping with cross-border investment, branch or subsidiary set-up; and guiding you through disputes, administrative inspections or enforcement actions. A lawyer also helps navigate registration steps so documents are correctly prepared and filed, which reduces delays and costly mistakes.
Key legal aspects that are particularly relevant when forming a business in Targovishte include the following.
Company types - The most common forms are sole trader - often registered as an individual trader, limited liability company - OOD or single-member EOOD, and joint-stock company - AD. Partnerships such as general partnerships and limited partnerships are also available. Foreign individuals and legal entities may found Bulgarian companies.
Registration - Companies are registered with the Registry Agency in the Commercial Register. Registration creates a company identification number - Unified Identification Code, and establishes the company as a legal person once the registration entry is completed.
Minimum capital - Minimum share capital varies by company type. For a limited liability company the statutory minimum is small - for practical purposes many small businesses choose OOD/EOOD. Joint-stock companies require significantly higher minimum capital.
Taxes - Bulgaria applies a flat corporate income tax rate of 10 percent. The standard value added tax rate is 20 percent. There is a mandatory VAT registration threshold based on taxable turnover - normally monitored on a 12 month basis. Employers must register and pay social security and health insurance contributions for employees under national rules.
Accounting and audit - The Accountancy Act requires proper bookkeeping and annual financial statements. Audit obligations depend on company size and turnover thresholds. Small companies still must prepare and file annual accounts.
Employment and labor - The Labor Code governs employment contracts, working time, leave, dismissals and employee rights. Local employers must register with social security authorities and operate payroll in compliance with statutory contributions.
Sectoral and municipal permits - Some activities need prior permits or licenses - for example food services, construction, waste management, transport and regulated professional services. Municipal authorities in Targovishte handle local permits, signage, waste collection contracts and local tax matters.
Data protection and other compliance - Businesses processing personal data must comply with data protection rules. Environmental, health and safety and consumer protection laws may apply depending on activity.
Registration starts with selecting the company type and preparing founding documents - memorandum and articles of association or an equivalent. You submit the documents to the Commercial Register at the Registry Agency, either electronically with a qualified electronic signature or in person. You will need a registered address in Bulgaria, identification for founders, and proof of paid-in capital if required. After registration you obtain an identification number and can register for taxes and social security.
If all documents are correct, registration in the Commercial Register can be completed within a few business days. Electronic submissions and properly prepared documentation speed the process. Additional time may be needed for opening a bank account, depositing capital where required, or obtaining sectoral permits.
Costs include state fees for registration, notary fees for notarised documents where needed, legal or accounting fees if you engage professionals, and any bank fees for capital deposits. The magnitude of costs depends on whether you use a lawyer or service provider and whether you need special permits. Budgeting for professional advice is recommended to avoid errors that can be more costly later.
Every company must have a registered office address in Bulgaria. The management body does not have to be a Bulgarian citizen, but the company must appoint a managing director or directors to represent it. Foreign directors are allowed, and they may operate remotely or by power of attorney subject to specific rules and practical considerations.
After company registration you must register with the National Revenue Agency for corporate tax and for VAT if you meet the registration threshold or choose voluntary registration. If you hire employees you must register as an employer for social security and health contributions. You will also need to set up accounting systems and file periodic tax returns according to statutory deadlines.
VAT registration becomes mandatory when your taxable turnover exceeds the statutory threshold measured over the relevant prior period. Small businesses with turnover under the threshold can opt for voluntary registration, which may be advantageous if you incur deductible VAT on purchases. Verify current thresholds with the tax authorities or your tax advisor before deciding.
Yes. Bulgaria allows foreign individuals and legal entities to form companies and to hold shares. Foreign founders must provide identification documents and may need apostilles or consular legalization depending on the origin of the document, or use certified translations. Practical steps include appointing a local address and arranging representation if founders will not be present for registration.
Ongoing obligations include bookkeeping and preparation of annual financial statements, filing corporate tax returns, VAT returns if applicable, payroll tax and social security declarations for employees, maintaining company registers, updating the Commercial Register for changes in management or capital, and complying with any sectoral permit conditions. Failure to comply can lead to fines and administrative restrictions.
Small businesses must keep proper accounting records and prepare annual accounts, so hiring an accountant is strongly recommended unless you have the necessary expertise. An independent audit is required when a company exceeds statutory size or turnover thresholds. Your lawyer and accountant should coordinate on corporate structure and tax planning.
Company closure can be voluntary liquidation or judicial dissolution following insolvency. Voluntary liquidation requires a formal decision by the shareholders, appointment of a liquidator, settlement of debts and distribution of remaining assets, and deregistration from the Commercial Register. The exact process depends on company type and financial status, so legal advice is important to avoid personal liability and tax complications.
When you seek more information or official procedures, the following Bulgarian institutions and local bodies are commonly involved in new business formation and post-registration compliance:
Registry Agency - Commercial Register and Company registration services.
National Revenue Agency - corporate tax, VAT and tax administration.
National Social Security Institute - social security registration and contributions.
National Health Insurance Fund - health insurance and related employer duties.
Bulgarian Patent Office - intellectual property registration such as trademarks.
Local Municipality of Targovishte - local permits, municipal taxes, planning and municipal services.
Regional Inspectorates for Environment and Water - environmental permits if your activity affects the environment.
Chambers of Commerce and local business associations - practical business support, networking and local market information.
Registered accountants and local law firms in Targovishte - professional help for registration, tax and employment matters.
If you are ready to proceed with forming a new business in Targovishte, follow these practical steps.
1. Clarify your business model and planned activities - identify whether you need sectoral licenses or special permits.
2. Choose the legal form that best fits your liability, governance and tax objectives - discuss options with a lawyer and an accountant.
3. Gather required documents - identification, proof of address, articles of association or founding deeds, and any foreign document legalizations or translations.
4. Reserve a company name and secure a registered address in Targovishte.
5. Decide whether you will engage a lawyer and accountant - ask for written cost estimates and a clear engagement letter describing services.
6. File registration with the Commercial Register and register for tax and social obligations with the relevant national authorities.
7. Open a business bank account and, if required, deposit initial capital in accordance with the company form.
8. Obtain any sectoral or municipal permits before starting regulated activities.
9. Set up bookkeeping, payroll and regular compliance calendars - missing deadlines can lead to fines.
10. Keep copies of all corporate documents, contracts and filings, and plan for a periodic legal and tax review as your business grows.
If you need legal assistance, start by preparing a brief summary of your business plan, the company structure you are considering, details of founders and planned activities, and any urgent deadlines. Bring this information to an initial consultation with a lawyer and an accountant so they can give tailored, practical advice and a clear cost estimate for the services you need.
