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Bulgaria, formally the Republic of Bulgaria, is a Southeast European nation. It encompasses the whole eastern Balkans and is bounded to the north by Romania, to the west by Serbia and North Macedonia, to the south by Greece and Turkey, and to the east by the Black Sea. Bulgaria is the sixteenth-largest nation in Europe, with a land area of 110,994 square kilometers (42,855 square miles). Sofia is the capital and biggest city of Bulgaria; other notable cities include Plovdiv, Varna, and Burgas.
The Neolithic Karanovo civilization, which dates back to 6,500 BC, was one of the first cultures in modern-day Bulgaria. The territory was a battlefield for ancient Thracians, Persians, Celts, and Macedonians from the sixth to third centuries BC; stability arrived with the Roman Empire's conquest of the province in AD 45. Tribal assaults in the area continued when the Roman state disintegrated. These lands were colonized by the early Slavs about the 6th century. In the late 7th century, the Bulgars commanded by Asparuh of Bulgaria launched an offensive from the regions of (Old Great) Bulgaria and permanently conquered the Balkans. They formed (Danubian) Bulgaria, which was successful in a pact with the Eastern Roman Empire in AD 681. It governed the majority of the Balkans and had a huge impact on Slavic civilizations by establishing the Cyrillic alphabet. The First Bulgarian Empire existed until the early 11th century when it was captured and destroyed by Byzantine emperor Basil II. In 1185, a victorious Bulgarian insurrection formed the Second Bulgarian Empire, which peaked under Ivan Asen II (1218–1241). The empire dissolved in 1396, after multiple arduous battles and feudal struggle, and came under Ottoman authority for over five centuries.
The third and present Bulgarian state was formed as a consequence of the Russo-Turkish War of 1877–78. Many ethnic Bulgarians were left outside the boundaries of the new country, fueling irredentist sentiments that led to many clashes with its neighbors and alliances with Germany in both world wars. Bulgaria joined the Soviet-led Eastern Bloc in 1946 and became a socialist state. Following the upheavals of 1989, the governing Communist Party relinquished its monopoly on power and permitted multiparty elections. Bulgaria thereafter became a democracy with a market-based economy. Bulgaria has been a unitary parliamentary republic comprising 28 provinces since the adoption of a democratic constitution in 1991, with a high degree of political, administrative, and economic centralization.
Bulgaria, which ranks 56th on the Human Development Index, is a developing nation with an upper-middle-income economy. Its market economy is a member of the European Union and is mostly centered on services, followed by industry (particularly machine building and mining) and agriculture. Corruption is a serious socioeconomic concern; in 2018, Bulgaria was regarded as the most corrupt nation in the European Union. The nation is also facing a demographic catastrophe, with its population declining year after year since approximately 1990; it now counts around seven million people, down from a high of over nine million in 1988. Bulgaria is a member of the European Union, NATO, and the Council of Europe, as well as a founding member of the OSCE and a three-time member of the United Nations Security Council.
Employees will do it after four months of work at their employer and for a period of 20 days.
There are 15 recognized public holidays in Bulgaria.
For the first three days of sickness, the employer pays 70% of the basic wage. From the fourth day of illness before complete recovery, Social Security pays 80% of the minimum wage.
For 410 days, you will be charged at 90% of your minimum salary (average gross wage in the 24 months prior). Maternity leave will begin 45 days prior to the child's birth. The first 135 days must be completed.
New fathers are entitled to 15 days of paid leave at a rate of 90% of their basic pay.
After the baby reaches the age of six months, the mother may pass any leftover maternity leave to the father.
Employer must provide employee a month's written notice prior to terminating employment. A notice term of up to three months may be specified in a business agreement.
A notice period of at least one month and no longer than three months is required. The contract specifies the duration in detail.
The maximum probation period in Bulgaria is six months.
If the employees are cut for reasons of redundancy, or economic causes such as if the company is closing or downsizing, they are entitled to one month pay in severance.
A typical workweek consists of eight hours per day, five days a week.
Overtime is strictly regulated and is only permitted in certain circumstances. The workweek may be extended to 48 hours, but no more than 60 workdays per year may be added, and no more than 20 of these days may be consecutive. Employers must consult with representatives of employees, provide written instructions, and notify the government labor inspectorate prior to requiring additional hours. Employees under the age of 18 are not permitted to work more than 40 hours per week.
Overtime pay is typically paid to employees who work additional hours. Compensation for overtime work in the form of additional leave is prohibited. On weekdays, overtime pay is 150 percent of the regular pay rate; on holidays, it is 175 percent; and on public holidays, it is 200 percent.
Bulgaria's minimum monthly wage is 650 EUR for all employees, regardless of age or experience. The Council of Ministers sets the minimum wage, so employers operating in Bulgaria should be aware of any changes to the law.
The National Health Insurance Fund provides health insurance, and all inhabitants are required to contribute to it.
Food vouchers are widely used in Bulgaria, and they are tax-free up to BGN 60 each month. Employers will occasionally give private health insurance.
The corporate income tax rate is 10%. It is a flat tax, although certain businesses may be compelled to pay 5% of their profit distribution.
Bulgaria imposes a flat income tax rate of 10 percent. This will, however, increase when employees are also required to pay an 18 percent social security fund tax.
The standard rate for the value-added tax (VAT) or goods and sales tax (GST) in Botswana is set at 20 percent, and 9 percent on hotel and camping accommodation.
Any foreigner who wishes to work in Bulgaria must apply for a Bulgaria residency permit. The Foreign Nationals in the Republic of Bulgaria Act is the principal piece of law controlling the issuing of residence permits for foreign people.
Foreigners may apply for one of three categories of Bulgarian resident permits, according to the legislation: Bulgarian residency visas, residence visas for foreign workers, and long-term or extended residence visas.
All employment contracts must be in writing, and the employer must notify the National Revenue Agency three days after the contract is signed. Before the employee starts work, the employer must give a copy of the notice to the National Revenue Agency as well as a copy of the contract signed by both parties.
All employment contracts must identify both parties and the place of employment, the job title, type of work, the date of contract execution and the start date of performance, the duration of the contract (if applicable), and information about leave, termination notice period, compensation, and normal working hours.
Employment contracts may be permanent or temporary. Permanent employment contracts have a set start date but no expiry date and may include a six-month trial period. Fixed-term work contracts are for a certain time period. The duration must be specified in writing, and it cannot be more than three years. The duration cannot normally be less than one year, but it may be less than one year if the worker asks it in writing. In certain instances, the contract may be renewed just once for a period of no less than one year.
It is also possible to have a fixed-term contract that lasts until a certain amount of work is done, an absent employee returns to work, or other requirements are met. If the employee continues to work for a minimum of five working days beyond the end of the fixed-term contract, the employer does not protest in writing, and the post remains empty, the fixed-term contract is automatically changed into a permanent contract.
If a probation period exists, it must be indicated in the contract.
Bulgarian lev (BGN)
When investigating how to set up a Bulgaria subsidiary, consider where you want to incorporate and what sort of business structure you want, since both might have an influence on the subsidiary establishment procedure. Different areas or localities in Bulgaria may have their own subsidiary laws, which may affect how you incorporate. If you don't have time to explore the neighborhood surrounding a real office space, you should hire a consultant or lawyer to assist you.
We also advise you to choose which subsidiary structure is ideal for your business. The entity you pick will constrain your activities, and each organization has its own incorporation procedure. A limited liability company (LLC), joint-stock company, limited partnership, free zone company, single proprietorship, branch office, and representative office are all examples of business entities in Bulgaria. Most businesses opt to establish as an LLC since it benefits both the subsidiary and the parent company.
The following actions are required to establish a Bulgaria subsidiary as an LLC:
1. Obtaining a one-euro minimum share capital
2. Creating a memorandum of understanding and articles of incorporation
3. Creating a parent company resolution outlining the decision to establish a subsidiary
4. The appointment of a subsidiary manager
5. Filing all papers with the Ministry of Justice's Registry Agency's Central Commercial Register
6. In Bulgaria, all relevant papers must be notarized, apostilled, and legalized.
7. Opening a bank account with a local financial institution
Bulgaria's subsidiary laws are determined by the kind of business you pick and the location of your actual office space. LLCs need a single shareholder and a single director, both of whom may be of any nationality and do not have to be based in Bulgaria. After you incorporate, you must submit yearly financial accounts with the Bulgarian Trade Register by March 31st of each year.
The nation employs a double-entry accounting system outlined in the Accountancy Act (ZS), with which all LLCs must conform. If your yearly revenue exceeds BGN 50,000, you must register for VAT and submit monthly VAT reports. Because you must have a minimum share capital to incorporate, you should open in-country bank accounts.