Bulgaria Govt to Cut Drastically Payment for Starting BusinessBusiness | August 26, 2009, Wednesday // 16:20| views
Bulgaria's Economy Minister Traikov (left) with PM Borisov (right) during Wednesday's sitting of the cabinet. Photo by BGNES
The minimum payment for starting a limited liability firm in Bulgaria could be reduced from BGN 5 000 to only BGN 2, or EUR 1.
This is envisaged in an amendment of the Trade Act approved Wednesday by the Bulgarian government of the GERB party, the government press center announced.
The change is aimed at creating a more favorable legal environment for starting a business, and for stimulating young people to be more entrepreneurial.
At present, Bulgaria has one of the highest required payments to the state for registering a firm. According to the Doing Business study of the World Bank, it is ranked 36th out of a total of 181 countries worldwide on the required sum to start a business.
Only countries like Mongolia, Mozambique, Congo, Benin, Syria, Lebanon require higher registration payments than Bulgaria.
About 100 nations worldwide have no minimum capital requirements; those include Australia, Canada, France, Ireland, Israel, New Zealand, Saudi Arabia, USA, UK, Japan, Singapore, Hong Kong, and Malaysia, the press center of the Bulgarian government points out in its announcement.
Representatives of the Bulgarian business sector have welcomed the initiative of the government to bring the required minimum capital down to EUR 1 because they believe it is going to provide for greater flexibility of the business environment, and would eliminate phantom or artificially maintained unprofitable firms.
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