Branch office

Registering a branch office can be really suitable for entrepreneurs, who do not want to fall under Bulgarian company law, but still want to take advantage of all the benefits that Bulgaria has to offer.

This give you the opportunity to have multiple branches in Bulgaria and develop your business presence on the Bulgarian market as much as possible. This way the company falls under the very accessible and flexible company law of your country, but the Tax benefits and a series of advantages are linked to the branches in Bulgaria.

Subsidary

The subsidiary is a new entity which is only connected to the original company by it’s ownership. The subsidiary can have entirely different business activities, it is a new entity in Bulgaria and can have different company set up from the original one. The most common subsidiary in Bulgaria is the OOD, due to the limited liability perks and the protection to personal belongings..

Branching VS Subsidiary

Branching

Easy establishment

Only physical persons can be a representative of the branch office

Straightforward maintenance

No capital requirements

Using the same entity

Subsidiary

New managment

Compliance challenges

Subject to 10% corporate income tax on the total income