Crypto License in Bulgaria – Fast and Affordable Solution
Startups are often scraping for capital, and cryptocurrency startups are no exception. With most European countries moving in the direction of ever stricter regulations, crypto startups are trying to find an alternative jurisdiction for an easier entry to the European market. The list of possible options just keeps diminishing. Luckily, there’s a new alternative available on the market – Bulgaria. A crypto license in Bulgaria can be obtained in just a few weeks.
Crypto License in Bulgaria
To speed up the procedure for obtaining a license in Bulgaria, we recommend using ready-made (shelf companies that did not operate before) companies. We always have a list of ready-made Bulgarian companies. The acquisition of a ready-made Bulgarian company will speed up the entire procedure by about one and a half to two months, allowing you to obtain a license within a few weeks.
Bulgaria, a member state of the European Union, and its government have demonstrated an ever-increasing positive and open opinion toward cryptocurrency activity. With the recent expansion of the Additional Provisions of the Measures Against Money Laundering Act, or MAMLA for short, it is now possible to obtain a crypto license in Bulgaria for cryptocurrency activity, such as wallet and exchange services.
The procedure for getting this licence is leagues simpler and easier compared to the established jurisdictions of Estonia, Malta, and Cyprus. You can expect to have a working solution in around a month.
The cost of a crypto license in Bulgaria is much lower than the cost of obtaining licenses in Estonia, Lithuania, Portugal or Cyprus. License is renewed on an annual basis.
To transfer a shelf limited company in Bulgaria and obtain a crypto license, a minimum package of documents is required. All documents must be notarized and apostilled.
A current account for a Bulgarian company for administrative expenses can be opened in one of the banks in Bulgaria, subject to certain conditions related to the significant presence of the company in Bulgaria. A faster and more efficient solution would be to open a current account for transactions with virtual currency in a payment institution outside of Bulgaria, in one of the EU countries. We always help our Clients to choose right options.
Bulgaria is amazing not only because of the simplified procedure for getting authorization for cryptocurrency activity, but also has a very good tax regime.
Corporate income tax is only 10%. The dividend tax is 5%. Combined, this puts it at an effective tax rate of 15%.
Crypto assets are not subject to VAT, so that helps reduce costs.
Compare this to the other alternative with a simplified authorization procedure – Poland. Poland has a corporate income tax rate of 19%, and a tax on dividends. Sure, you could argue that since you’re working in crypto assets, there are options to hide some of the profit, but why go through this hassle when you can just get the same working solution in Bulgaria and end up only paying 15% tax on your profits and keeping the rest to yourself with no strings attached?
Bulgarian companies have no audit requirements, and there’s currently no mandatory local staff required for getting the authorization. As such, the whole procedure can be done remotely.
The first step in obtaining this authorization is registering a company in Bulgaria. Due to needing to first open a temporary bank account for the share capital contribution, we strongly advise going the route of getting a ready-made company in Bulgaria. This significantly reduces the time it takes to have a working legal entity.
On average, it takes 5-7 working days to change ownership of an existing company. Compared to 1,5-2 months for registering a new entity in Bulgaria for foreigners.
After the company has been established, the next step is preparing the AML policies and the application for the license by the National Revenue Agency of Bulgaria (NRA).
It takes 5-7 business days to prepare the AML policy and authorization application, after which the NRA will begin the review process, which takes somewhere between 14 and 30 days.
We can take care of the legal paperwork for the authorization, but you, as the potential cryptocurrency services operator, should prepare a description of the services you will be providing and a website, if possible.
Crypto License in Bulgaria and its Advantages
Remote registration / transfer of the company and obtaining a license;
There is no requirement for an AML or Compliance officer.
The minimum requirement for the authorized capital is 2 BGN.
Preferential taxation for crypto companies and all other types of activities.
PFSER SPECIALISTS WILL PROVIDE THE FOLLOWING SERVICES
Preliminary analysis of the business model and consultation;
Full support for the establishment and transfer of a Bulgarian company;
Assistance in the development of internal policies and procedures;
Full support for obtaining a crypto license in Bulgaria;
Legal address and contact person service;
All state and notary fees are included in the package;
If you’re a crypto startup that’s look for a relatively easy method of entering the European market, then Bulgaria might be the perfect jurisdiction you’re looking for. With its low barriers to entry, quick process and membership in the EU, this country is quite a rare gem for crypto service providers.
Should you decide that a crypto license in Bulgaria does not fit your goals, Private Financial Services will help you to get the crypto license in any other European or offshore country.