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Overview
In Bulgaria, obtaining a crypto license involves registering a company with the Bulgarian Commercial Register, typically as an LLC, and complying with the regulatory requirements set by the Financial Supervision Commission (FSC). The application process includes submitting a detailed business plan, AML/KYC policies, risk management procedures, and information about key personnel. The FSC reviews the application to ensure the business meets the necessary standards for financial stability and regulatory compliance. Once approved, the license permits the company to legally operate crypto-related services within Bulgaria. Ongoing compliance with regulatory standards is mandatory, including regular reporting and audits. Engaging legal and professional advisors can streamline the application process and ensure adherence to all legal obligations.
Timeframe: around 3 – 6 months
Minimum paid up capital: In Bulgaria, there is no specific requirement for a minimum share capital to start a cryptocurrency business. Companies must comply with general commercial regulations, which may include maintaining a minimum capital depending on the legal structure chosen for the business, such as a limited liability company or a joint-stock company.
Overview
Bulgaria does not require a specific crypto license for cryptocurrency transactions, as cryptocurrencies are not classified as financial instruments or virtual money by the financial regulator. This allows for the establishment of cryptocurrency businesses without direct regulatory oversight.
While there is no dedicated crypto regulation, companies must comply with the Anti-Money Laundering (AML) Act, which includes mandatory checks for transactions over €15,000. This minimal regulatory framework provides an advantageous environment for crypto enterprises.
Bulgaria offers a stable business climate, access to the EU market, and no currency controls, with company profits taxed at a favorable 10% rate. These conditions make it an appealing jurisdiction for starting or expanding cryptocurrency projects.
Comprehensive Guide to Company Incorporation
Company structure
To register a cryptocurrency company in Bulgaria, a minimum of one shareholder is required. This shareholder can be an individual or a corporate entity. There is no maximum limit on the number of shareholders.
A cryptocurrency company in Bulgaria must have at least one director. The director does not need to be a Bulgarian resident, allowing flexibility for foreign investors.
Confidentiality
Beneficial owners’ details – disclosed to the Authorities
Shareholders’ details – part of public record
Directors’ details – part of public record
Taxation
Cryptocurrency businesses in Bulgaria are subject to a corporate tax rate of 10%. This is one of the lowest corporate tax rates in the European Union, making Bulgaria an attractive destination for cryptocurrency companies. Additionally, there may be a 5% tax on dividends distributed to shareholders.
Accounting requirements
Filing annual report is obligatory
Secretary – Required
Registered office – While there is no mandatory requirement for a physical office in Bulgaria, having a local office is advantageous for business operations and demonstrates a commitment to compliance with local regulations.
The procedure for registering a cryptocurrency business in Bulgaria involves several steps:
- ▪Company Registration: Register the company with the Bulgarian Commercial Register.
- ▪Compliance with AML/CTF Regulations: Ensure compliance with anti-money laundering (AML) and counter-terrorist financing (CTF) requirements.
- ▪Tax Registration: Register for tax purposes and obtain a VAT number, if applicable.
- ▪Opening a Bank Account: Open a corporate bank account in Bulgaria.
- ▪Business Operations Setup: Set up necessary business operations, including hiring staff and setting up an office, if required.
To establish a cryptocurrency company in Bulgaria, the following documents are typically required:
- ▪Company Charter (Articles of Association): Detailing the company’s structure and rules.
- ▪Proof of Identity: Passports or IDs of shareholders and directors.
- ▪Proof of Address: Address verification documents for shareholders and directors.
- ▪Business Plan: A detailed business plan outlining the company’s activities and goals.
- ▪AML/CTF Policies: Documents outlining the company’s policies and procedures for compliance with AML and CTF regulations.
- ▪Bank Account Information: Details of the corporate bank account.