Your Partner in Bulgaria.

Varna is not only property but also IT business destination

Varna is known among foreign investors as a cheap sea property destination. Since the property bubble has popped up, Varna is offering a sustainable business opportunities, supported by the local city council. The municipality has adopted a strategic plan for development of Varna area. You can read an excerpt from the strategy further below. As you can notice, one of the main locally supported industries is the IT business and business clustering. Normally the IT business is focused in Sofia, but Varna is also a good undeveloped IT investment destination since there is a Technical University - a reputable IT university. Many young programmers tend to search for a job in Sofia, but would like to stay in Varna if a job opportunity opens.

Varna IT sector consists mainly of web site and software development small companies. They work mainly with foreign customers and provide high quality web services. The local IT industry is yet to be expanded, backed up by the Varna Municipality initiatives and the entrepreneurship of the young local people.

See below the 2007-2013 Varna region strategy for business development:

STRATEGIC OBJECTIVES

  1. Achieving sustainable, rapid economic growth and stability by creating a favorable business environment to attract investment from the EU and creative initiatives based on life-competitive market, innovation and improved access to markets and services.
  2. Mobilizing and increasing the quality of human potential and achieving levels of employment, income and social inclusion, providing better quality of life of the EU average levels.
  3. Achieving successful integration of the main industry sectors of the  municipal economy in the European economic structures.

Specific objective 1: Promoting Entrepreneurship

  1. Support of retail and social entrepreneurship through support services to businesses and financial instruments targeted at job creation and start-ups.
  2. Encouraging activities through an entrepreneurial culture and attitude in society and higher education.
  3. Encouraging women’s entrepreneurship through targeted marketing, greater child care and detection of specific structures for business support, providing a suitable environment for women entrepreneurs.
  4. Support for creating groups of fishermen and fishing communities to carry out activities of collective interest.

Specific Objective 2: Development of research, technology, innovation

  1. Setting up a scientific-industrial council to organize the creation of a local innovation system that provides predominantly increased services with higher added value, research and innovative companies in the municipality.
  2. Encouraging the production of structures in industry sectors of internationally recognized research centers and attracting new sponsors for research, new business and new knowledge.
  3. Encouraging the use of research and technology by businesses to increase knowledge transfer to business. Encourage cooperation in research, skills development, finding technical assistance and new markets.
  4. Qualification and retraining of pedagogical staff
  5. Encouraging of creation and development of innovation culture through participation in business structures and increase the number of employed people with education, especially in technology.
  6. Setting up of municipal fund to stimulate innovation and technology start-ups and SMEs operating in the municipality.
  7. Setting up a community center to foster innovation and new technology start-ups and SMEs.
  8. Support for investment in priority social and economic areas in the municipality.
  9. Innovation in energy efficiency and renewable energy sources and environmental protection.

Specific objective 3: Establishment of business networks and regional clusters

  1. Optimizing of the links between business, sectoral and professional bodies and local administration to ensure efficient use of labour and financial resources and know-how.
  2. Encouraging of inter-company cooperation and public-private partnership in the transfer of new technologies and best practices from the EU.
  3. Development of programs to identify, establish and support the development of cluster structure in the local economy with priority given to tourism, the marine industry, crafts and more.
  4. Setting up centers for cluster transfer and cluster management in industry sectors in the municipal economy.
  5. Development the specialized infrastructure serving clusters.

Specific objective 4: Promote the development of information society

  1. Creation of local infrastructure of the information society.
  2. Creation of municipal school information network and local school information networks.
  3. Improving access to and development of online public and business services.
  4. Support businesses to adopt and effectively use information and communication technologies.
  5. Development of ICT in all levels of education.
  6. Creation of municipal public portal with opportunities to access all public information from various walks of life.

Read more here:

Investment profile of Varna, Dobrich and Constanta region

  • 09.01.2011
    • , by 
  • by Milen Hristov
  •   1 Comments

Having Bulgaria and Romania as members of EU opened new opportunities of business cooperation between the two countries. EU funding stimulated a lot of small and medium enterprises to for trans-border business ventures . The companies are mainly from Varna, Dobrich (Bulgaria) and Constanta (Romania).

Investment climate

Bulgaria attracts investors with its low tax regime (10% flat rate fro corporate tax) – one of the lowest in EU. Furthermore a lot of Romanian companies benefit from Bulgaria’s low tax and they register limited companies in the border Bulgarian cities (such as Dobrich and Varna), but their business operates entirely in Romania. Furthermore, foreign investors can benefit both the Bulgarial low tax regime and simultaneously can benefit from both Bulgaria’s and Romania’s infrastructure, industry facilities, local services. The beauty of EU is that it allows free movement of people and goods. This enables investors to take advantage of both Romania and Bulgaria labour force, tax regime and infrastructure connections.

Big investors also can benefit of the special Bulgarian Investment Promotion Act. Companies/Individuals who invest in hign unemployment regions (there are few in Dobrich/Varna disctrict) the corporate tax for such investors will drop to 0%. Yes, such opportunity exists and several companies in Bulgaria took advantage of it. If you are interested in this opportunity you can contact our law office for further details. No one else can offer you 0% corporate tax in EU. Bulgaria can, especially Varna and Dobrich regions.

The Bulgarian ministry of Economy Energy and Tourism havs provided date of the best industry sectors in the region (information based on 2010 data):

  • Agriculture
  • Mining
  • Manufacturing High-technology
  • Manufacturing Medium-high-technology
  • Manufacturing Medium-low-technology
  • Manufacturing Low-technology
  • Knowledge-intensive market services
  • High-tech knowledge-intensive services
  • Knowledge-intensive financial services
  • Other knowledge-intensive services
  • Less knowledge-intensive market services
  • Other less knowledge-intensive services
  • Electricity, water, sewerage, recycling
  • Construction

So why should a foreign investor consider an investment in Varna/Dobrich/Constanta region? There is no straightforward answer to that question. However you should look to the information below and see how good is th investment climate and what are the benefits of the Varna/Dobrich/Constanta region.

Logistics – Black sea ports

The first and most obvious advantage of the region is the major ports of the Black sea (Varna and Constanta). This boosts the import/export services as well as inland logistics from the region. Black sea ports are strategic for the trade between EU, Russia and Middle east. Varna and Constanta are the logistic water gateways of the European Union for Russia and Middle east. Recently there were couple of projects for building of enormous ligistics facilities (warehouses) which will serve the increased  trade/transportation between Bulgaria (Varna) and the non-EU countries.

You can get more information on Varna port and Constanta port on their websites.

Logistics – International airports

The region develops not only water logistics but also air logistics. Varna Airport is the biggest cargo and passenger airport in the North-East Bulgaria.  Constanta Airport is also main air gateway in the region. The businesses will have direct flight connection to major European cities from those airports. Further connections are available through the states’ capitals.

Shipyards – building and ship repair services

Varna is considered as the Black sea capital of Bulgaria. One of the main industries in the city is ship building and repair services. The city has long history and tradition in that services. There are few companies who offer such ship repair and building services. You can find more information HERE. Romanians shipyard services are competitive well enough. Constanta also offers ship building and repair services on the Constanta shipyard.  Along with logistics (ports) the region has a lot to offer in terms of full logistics/repair services to the international trade and logistics companies.

Legal services

Our lawyers can offer comprehensive overview of your investment plan. We can advise you on the details and also can introduce you to the local business, so you are aware of some specific Varna/Dobrich/Constanta local business details. We can also assist you with the projects and EU funding for your business venture. As a member of EU Bulgaria is entitled to participate in up to 90% funding for business projects (mainly production industries), which means  that your investment in the region will be with the quickest possible return in EU.  In short, zero percent corporate tax ,  up to 90% EU funding, free trade zone (EU) could boost your business expansion in EU to enormous scale.

Read more here:

Liquidation of company in Varna

  • 07.08.2010
    • , by 
  • by Milen Hristov
  •   6 Comments

There are many disappointed UK investors in Bulgaria. Some of them are leaving the country and want to sell their investment and recover at least some of the money they have put in property or business. The problems each foreigner is facing are:

  1. How to sell the property at a decent price so that at least 70% of the investment is recovered and
  2. What will happen to the Bulgarian company

As the first problem is connected mainly to the market demand, the second problem can be resolved with a help of a lawyer. Usually when you sell you property the company is becoming dormant and you are not trading anymore. IF you intend to leave the country for ever it will be not so good idea to leave a company with your name in it. Sooner or later the National Revenue Agency might want to make an inspection and will find out that you haven’t submitted annual tax declarations. This will be quite suspicious so your company will be marked as one to be surveyed. The tax and financial information in the EU is quite easy transferable. It might turnout  that you will be charged with the Bulgarian fine in UK, which is quite unpleasant experience for your UK tax record.

The solution to get rid of the Bulgarian company is to close it by liquidation. The liquidation process takes about 6 months, having in mind that the company has no public or other debts. A liquidator has to be appointed who will take care of the whole process, prepare and submit the necessary documents, so your company will be removed from the Companies register of Bulgaria. Since I am professional liquidator I take care of all the procedures and have your company closed as smooth as it should be. No  stress, no problems for you. I am also a registered liquidator with the Registry Agency of Bulgaria. My office is based in Varna so should you have a company registered in Black sea region, do not hesitate to contact me.

Read more here:

The mass liquidation of companies in Bulgaria

The mid year passed and the deadline for re-registration all Bulgarian companies is fast approaching. January 2011 will become nightmare for company owners who haven’t reregistered. Their companies will be forced into liquidation by the court and the all company assets will be sold on public tenders. Moreover, the court will appoint a liquidator and the company owner will have to pay their monthly salary. IF the company assets are not enough, the company owners will be liable for both company debts and for liquidator’s salary.

Therefore we strongly urge all foreigners who still haven’t reregistered their company to do it as early as possible.

Read more here: