Basic price of incorporation the company with VASP authorization in Bulgaria starts from €9,000
Bulgaria in EU cryptocurrency regulation
Bulgaria is a perfect jurisdiction for those looking for low tax rates and minimal regulation of cryptocurrency providers within the European Union. It is a great option for scaling an existing business or setting up a new one, as the existing legal requirements for cryptocurrency service providers are minimal compared to other EU countries.
Bulgaria provides low taxes and minimal regulation
Step by step description
Step 1 – Gathering documents from the client to start the process:
- preliminary project analysis;
- KYC collection and business description;
- preparation of power of attorney for client attestation;
- an up-to-date copy of the passport of the country of residence;
- preferred company name.
Step 2 – Registration of a limited liability company in Bulgaria (upon documents receipt on hands):
- opening a preliminary banking account for contribution of the shared capital and supporting of the process of deposit;
- carrying out the notarial deed of company registration;
- entry of company data into the commercial register.
Step 3 – Pre-application work:
- development of AML/KYC policies tailored to the client company’s cryptocurrency operations;
- hiring and training a local Director for the company and adapting their skills to the company’s operations;
- filing and registration with the National Revenue Agency.
Step 4 – Opening B2B & C2B corporate accounts for VASP (Additional):
- conducting preliminary assessment and match for suitable Financial Institution for further corporate account opening;
- preliminary negotiations with the payment institution and support of the client throughout the account opening process.
Ready-made VASP company in Bulgaria
We also offer the service of buying a ready-made company with an authorization in the crypto-registry and a corresponding certificate from the NRA, local director and crypto-accounting set-up.
The transfer will be done according to POA issued by the Bulgarian Embassy in the place the client stays. The process including the transfer of the company, banking account, VASP authorization will last up to 3 weeks.
The client will also obtain updated individual package of AML policies, tailored for his business model, full set of apostiled corporate documents with a new owner details. The company may also be renamed.
The price includes full legal support of the transfer of shares, due diligence of existing company, consulting by our team.
Our companies are sold with the service of local director and crypto accounting.
Understanding the Bulgarian Requirements
Cryptocurrency business in Bulgaria is regulated as part of the implementation of measures to prevent and detect acts of money laundering derived from or in connection with criminal activities. Currently, cryptocurrency business can operate without a license, but it is necessary to register in a special crypto register maintained by the National Revenue Agency (NRA).
Crypto license is not required, you need only to register in a special crypto register
A VASP license in Bulgaria requires a minimum share capital (€1), 1 director, adherence to AML/KYC regulations and registration in a special crypto register
Requirements for VASP registration
There are several requirements that must be satisfied in order to register a company with the crypto-registry and to obtain a certificate of registration with the crypto-registry in Bulgaria:
- established a limited liability company established in Bulgaria with a minimum share capital of €1;
- company founders need to open a bank account before registering a company;
- company must have one local director who will liaise with the regulatory authorities;
- a company must comply with all applicable AML regulations and approve full set of AML policies individually tailored under the project;
- a company is obliged to register in a special crypto register maintained by the National Revenue Agency (NRA).
Taxes in Bulgaria
Virtual currency exchange services are not subject to VAT, in addition, services invoiced (e.g. sales invoices) in virtual currencies are subject to regular VAT rules.
Within the EU, Bulgaria has minimal flat-rate personal and corporation tax rates, both at 10%.
Dividends are subject to 5% tax.
The withholding tax to be paid from interests and royalties is 5%.
Virtual currency exchange services are not subject to VAT
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We look forward to the opportunity of collaborating and delivering exceptional solutions that meet and exceed expectations of any Client.
The content of this article is intended to provide a general guide to the subject matter, not to be considered as a legal consultation.