Founders of a Foundation in Bulgaria may be Bulgarian and foreign citizens of full capacity to act, as well as local and foreign companies. The law does not differentiate between nationals and non-nationals for purposes of establishing, membership or management of the Foundation and does not specify any additional requirements on the citizenship basis. A foreign citizen does not have to live or reside in Bulgaria.
Foreign NGOs can also establish branch offices in Bulgaria.
Note that the registration of Bulgarian foundation provides the right to apply for a long term residency permit in Bulgaria.
There are many advantages involved in setting up a Foundation in Bulgaria. E.g. the foundations do not pay taxes on the income from non-profit activities (donations, project grants, etc.). As well, the Law provides a deduction for corporate and income tax purposes for donors who make charitable contributions. Companies may deduct up to 10 % of its annual profit. Individuals may deduct up to 5% of their annual income. Foundations which develop business activity are taxed with 10% corporate tax on their profit.
Incorporation of a Foundation
A Foundation in Bulgaria may be set up by 1 or more legal entities and / or individuals.
In order to create a Foundation, the founder/s shall decide on:
- the name of the Foundation;
- its seat and registered address;
- the scope of its activities and whether it will carry out an activity for private or public benefit;
- its goals and the means for their attainment;
- the members of its managing body;
- the property of the Foundation;
- the supplementary economic activity.
The fonder/s may appoint a single-person or collective managing body.
Foundations may pursue additional business activities only provided they are related to the subject of the basic scope of activities specified in their registration, and provided the revenues are used for the purpose of attaining the objectives set forth in the Statute.
As well, the founder/s shall adopt the Statute of the Foundation.
Setting up a Foundation in Bulgaria requires an act of donation. There is no minimum amount or value. The donation may be money or other type of assets.
Registration of a Foundation with the NGOs Register
The documents for the registration of a Foundation with the Bulgarian Non-Profit Organizations Register are as follows:
- a standard form application for entry of circumstances concerning a Foundation;
- a Statute of the Foundation with notary certified signatures of the founders;
- Minutes of a Constituent Assembly of the Foundation;
- a decision of the founder/s to assign a representative and managing bodies of the Foundation;
- a Signature samples of the representative and the members of the managing body;
- a standard form affidavit by the representative that the circumstance to be registered with the NGOs Register are true and genuine;
- a Power of attorney issued to the lawyer that shall file the documents with the NGOs Register;
- a bank certificate or other document evidencing the donation;
- a bank receipt evidencing the payment of the statutory fee for registration of a Foundation with the NGOs Register.
Where the founder is a legal entity, a decision of its relevant competent authority is also required to participate in the incorporation of the Foundation. As well, the legal entity shall appoint a representative to the bodies of the Foundation.
If a foreign legal entity participates as a founder, an official document must be presented establishing its existence and the persons who represent it under its national law.
A registration of a Foundation with the NGOs Register took only 1 working day.
As per the Bulgarian Measures against money laundering Act the identification data of the beneficial owners and the data on the legal persons or other entities wherethrough direct or indirect control is exercised, shall be announced in the NGOs Register. It cannot be done at the same time with the registration of the Foundation. Where the representative of the Foundation is a foreign citizen without permit for permanent stay in Bulgaria, a contact person shall also be announced. The contact person is an individual who is permanently resident within the territory of the Republic of Bulgaria.
We can assist you with the registration of a Foundation in Bulgaria, providing also a virtual office services, assistance to obtain a long term residency in Bulgaria, accounting services and contact person. For more information please do not hesitate to contact us by e-mail: email@example.com or call us on: +359 2 851 72 59.