Bulgaria

As a member of the European Union (EU), Bulgaria is a superb jurisdiction with stringent regulation.

overview

Bulgaria

Bulgaria is a Balkan nation, with a coastline on the Black Sea.

As a member of the European Union (EU), Bulgaria is a superb jurisdiction with stringent regulation.

Bulgaria is covered by The Markets in Financial Instruments Directive (MiFID), an European regulation that enhances the transparency across the financial markets across EU, and standardizes the regulatory disclosures required for firms operating in the region.

The Bulgaria Forex License is Issued by Financial Supervision Commission (FSC).

The license allows you to operate across every member country of the EU, since Bulgaria is an EU member state. Two Types of Licenses are issued :
    • Straight Through Processing (STP) License – Capital Requirement EUR 125,000
    • Market Making (MM) License – Capital Requirement EUR 730,000

  • Time Frame: About 6 to 7 Months
  • Taxation: 10% (the lowest in the EU)
  • License: Forex License

For each Director, Shareholder and Ultimate Beneficial Owner:

  • Notarized / Certified True Copy of Passport
  • Notarized / Certified True Copy of Proof of Address
  • Notarized / Certified True Copy of Bank Statement
  • Bank Reference Letter
  • Notarized / Certified True Copy of University Diploma
  • Curriculum Vitae (C.V.)
  • Each individual is required to complete a Application Form personally


For each Corporate Shareholders of the company:

  • Certificate of Incorporation
  • Memorandum of Association
  • Articles of associations
  • Articles of Incorporation
  • Register of Directors
  • Register of Shareholdings
  • Certificate of Good Standing (if the company is over a year old)
  • Signed and notarized application forms


Other Required Documents:

  • Liquidity Provider Agreement
  • Proof of Source of Wealth
  • A detailed business plan, together with an outline of the company’s intended activities
  • 3-year financial forecasting
  • Marketing strategy for the company
  • An outline regarding the company’s capitalization (capital structure, shares distribution etc.)
Company structure:
  • Minimum 1 shareholder (natural or legal person, no nationality restriction)
  • Minimum 1 local director
  • Beneficial owners’ details will be disclosed to the authorities
  • Shareholders’ details are part of public record
  • Directors’ details are part of public record

Taxation:
  • Corporate Income Tax: 10%
  • Dividend Tax – 5%
  • VAT: 0% (EU internal deliveries and export are free of VAT)
  • Personal Income Tax: 10%

Accounting requirements:
  • Audited accounts shall be submitted annually

Others:
  • Registered office – Required
  • Local employee – Required (3 or more)
  • Legal Framework: Markets in Financial Instruments Act
  • Regulatory Authority: Financial Supervision Commission (FSC), Bulgaria
  • Capital Requirement:
    • Straight Through Processing (STP) License – EUR 125,000
    • Market Making (MM) License – EUR 730,000


Permitted Activities:

  • Licensed brokerages are allowed to engage in forex trading and trading of derivative instruments (securities, futures, options, contract for differences etc).
  1. Compile and prepare of all of the documents for initial verification

  2. Incorporation of a company in Bulgaria

  3. Submit the application of Forex License to Financial Supervision Commission (FSC)

  4. During the process, FSC will require additional documents that will have to be provided in order to back-up specific information

  5. Liaise with FSC on follow-up actions

  6. If all conditions are met, provisional approval will be granted by FSC

  7. At this stage, Offshore Tech & Intermediary Services will provide proof of local office and list of the employees, as well as settling all the fees.
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