Are you a foreigner interested in starting up a business in Bulgaria? Are you a foreigner looking for the best business ideas in Bulgaria to invest in? Then you have found yourself in the right place.
In this article, you will be exposed to the ten best business ideas in Bulgaria that can serve as your guide while investing in the country.
I’ve also thrown in the procedure for starting up a company within the country, just to get you up to speed.
Before investing in a foreign country, you need to conduct research on the economy of the country.
With the economic indices, you can predict whether your investment will be fruitful or a disaster.
Now, let’s look at the economic indices of Bulgaria.
The World Bank classified Bulgaria as an industrialised upper-middle economy built on the principle of the free market economy.
So, there has been a 416% significant growth in the economy of Bulgaria.
Starting from $13.15 billion (nominal, 2000) to reach an estimated Gross Domestic Product (GDP) of $67.9 billion (nominal, 2019) or so $171.185 billion (PPP, 2019).
The Bulgarian currency “lev” is the strongest and most stable currency in Eastern Europe.
Pegging to euro, 1 euro is equivalent to 1.95583 levs.
Bulgarian has also the lowest corporate tax rate within the European Union (flat rate is 10%)
Therefore to start up a company in Bulgaria is not very stressful and expensive.
So, it takes the maximum of three days for you to go through all the registration process.
One good thing about this country is that you do not have to be a citizen before you could start up a business in Bulgaria.
As far as your international documents are ready and valid, you can easily start up any business ideas in Bulgaria.
The 10 best business ideas include:
1. Tours and travels
Bulgaria is full of beautiful historical and eye-catching sites.
So, it is known as the oldest country in Europe.
It contains one of the world’s oldest historical sites.
According to the World Bank, Bulgaria attracted in addition to about 12 million foreign tourists in 2017.
RELATED: BUSINESS IDEAS FOR TRAVEL LOVERS
Since then, the number of tourists has been on the increase.
Venturing or starting up a tours and travels company can be very profiting.
Before the company starts up, it is advisable you contact PwC first.
Doing business in Bulgaria PwC is a framework in which this financial tech company provides business, tax.
And also advisory services to foreigners wanting to establish a business within the country.
After consultancy, the next step is for you to know the various eye-catching sites within the country and therefore present them in packages to tourists.
With “tourist packages”, you can present the proposed tours sites with their different price tags.
Agriculture is a very profitable sector, one of the good business ideas in Bulgaria.
It accounts for about one-fifth of the total national income of the country.
Its abundant arable soil supports both crop and livestock farming.
Majorly, cereals are mostly grown both for export and local sales.
The most important cereals to cultivate for anyone planning to start up an agricultural-based investment is:
- Wheat (the most important)
- Barley like rye, oats and soya beans
Therefore apart from cereals, the below are among the best profiting agricultural-based investments:
- Oriental tobacco cultivation
- Rose altar cultivation
- Medicinal herbs cultivation
- Sheep’s milk cheese collection
- Oilseeds cultivation
- Sugar beets production
- Fruits and vegetable
You can specialise in one or combine two or more cultivations.
In addition, it all depends on your available capital and the nature of your proposed business.
So in the European Union, Bulgaria ranks third in copper mining, fourth in gold mining, and fifth in Lignite mining.
Other raw materials are mined.
And also, produced in the country are Lead, zinc, copper, kaolin, polymetallic ores, limestone, marble, gypsum, and bentonite.
One of the notable Bulgarian companies that are into mining is Assarel-Medet JSC Mining and Processing Complex.
Since its inception, it is has made millions of levs.
The good thing about this sector is that there is no much competition.
Although it requires huge capital to start-up, you can penetrate the market sphere without much struggle.
4. Food and drinks sales outlet
The Bulgarians are known for their love for eating outside as a family, especially at dinner time.
Start-up a food outlet or restaurant, and there are certain facts you must know.
The Bulgarians love their traditional delicacies; they are not fans of rice or noodles.
Most importantly, in Bulgaria, dinner is usually a social activity.
Restaurants do play traditional songs and sometimes employ dancers to entertain the customers.
The types of food that sells well within the country are:
- Banitsa – a breakfast pastry with white cheese, eggs, and yoghurt
- Shopska Salata – salad starter with cucumbers, peppers, tomatoes and cheese
- Kavarma – vegetable stew and pork
- Tarator – soup made up of walnut, cucumber and yoghurt
- Sarmi – meat stuff with vine or cabbage leaves
- Kebapche- strongly spiced, small, minced meat rolls
- Palacinka – local pancakes
Salad is usually served as an appetiser before the main dish.
Also, the people here are known for their love for drinking local wines.
Local wines like Mavrud, Melnik, Ruen, Rubin, Diymat, Red Misket, and Pamid sell very well.
5. Apparel Production
In apparel production, Bulgari is referring to Europe’s most resilient market.
Apparel production is as the second most profiting industry after tourism.
To start up an apparel producing company, you have to have to be well equipped financially.
Its overhead cost is huge—the formation steps to start a company to discuss the end of the article.
Also, if you don’t have enough capital to start up the company, you can buy shares in already existing apparel producing company.
It may interest you to know that international brands like Huge Boss, Esprit, Roy Robson.
And so many more get some of their appeals designed and produced in Bulgari.
E-commerce is a very rewarding business in Bulgaria, with a GDP growth rate of 3.60%.
According to statistics, the internet penetration of the locals is on a scale of 58.50%.
This is invariably one of the best businesses to start up in 2020, as revenue in the e-commerce market projected to hit a US$65 million this year.
Fashion rentals are the biggest and most profiting niche to start up in the e-commerce market.
It is estimated to hit a US$218 million market volume before the end of this year.
Stop holding on to that capital, go and start-up an e-commerce business and reap from the huge benefits accruing from it.
7. Metallurgical industry
It will interest you to know that the metallurgical industry is one of the excellent business ideas in Bulgaria is fully privatising.
Therefore it is mostly involved in export.
As earlier stated, the country is rich in raw material deposits.
Majority of the Europeans and world markets depend on it for the supply of metallic products.
It is a very lucrative industry to start up with a huge overhead cost.
However, the demand for metallic products is huge and profiting.
8. Electronic Rentals and Export
The high level of expertise in microwave communication, fascial memory electronic devices.
And also electronic energy meters in Bulgari have attracted over 180 million US dollars’ foreign investment.
The electronic industry within the country is known for its long-standing, high qualified, and skilled force.
Going into electronic rentals and export in Bulgari is highly profiting with a high return on investment.
So, it has an already prepared ready market.
Skilled labours are also available.
This removes the stress of looking for qualified manpower to work with.
The business arena in this sector is highly favourable for foreign investors.
If you want to start up an electronic rental or exports outlet, it is advisably to deal on:
- Consumer electronics
- Automotive electronics
They are more fast-growing than other types of electronics appliances.
9. Wine Production
Bulgaria is one of the best wine exporting nations in the world.
It has enjoyed international recognition for its quality wine.
Investing or venturing into wine production is very profiting with a high return of investment (ROI).
Seven in ten Bulgarians drink wine daily.
It is as part of their lifestyle.
As an investor, you can specialise in producing wines for either local or international purposes.
Moreover, both are profitable business ideas in Bulgaria.
To start up a wine production company, you don’t need to bother on where to get wine grapes.
It can be locally sourced.
This country has one of the best viticulture farms in the world that produces varieties of healthy grapes.
10. Graphics Designing
The influx of e-commerce sites and digital platforms in Bulgaria have increased the demand for graphics designing.
It is one of the fastest-selling digital skill in the country.
As a graphics designer, you can easily get a job as one of the business ideas in Bulgaria.
You can also be a freelance graphics designer, or you can work in an organization as a paid employee.
Either way is good, but freelance graphics designing is more profiting in this region.
As a freelance graphics designer in Bulgaria, you can register your presence in Creativepool.com.
There you can good clients to work for.
Just get a good gig, then you are good to go.
Also, sortlist.com is a very good site for freelance graphics designers within the country to look for available jobs.
Here you look for jobs and apply.
Maybe you prefer buying a business to starting up a fresh one.
Also, business for sale Bulgari is put in a show in Bulgarian local and international magazines within the country and the European Union.
Just subscribe to their business updates.
So, if your business start-up requires starting a company and you are wondering about how to go about it.
This section is for you.
The nature of the foreign companies in Bulgaria:
- Limited Liability Company (Ltd)
- Joint Stock Company (JSC)
1. Limited Liability Company (Ltd)
It is the most popular choice for small and medium businesses.
Ltd can be with one or more shareholders and managers.
The minimum capital to start up a Limited Liability Company is 1 euro which equals BGN 2.
2. Joint Stock Company (JSC)
So, this option is most suitable for individuals who want to start up to large companies within the country.
A JSC was founded with one or more registered shareholders.
Therefore, the minimum numbers of board of directors required for the start-up are three.
The minimum capital needed for founding a Joint Stock Company is 26,000 euros which equal BGN 50,000
Essential requirements for company registration:
- Passport details of the shareholders and managers
- The suggested name of the company
You should note that the suggested name of your company must not be similar to the name of an already existing company.
You should verify the originality of your proposed business name before submission.
Cost of registration:
Therefore, the exact cost of the registration is dependent on the number of documents.
So, that will be translated, legalised at the Ministry of Foreign Affairs, and coordinated at the Bank and Commercial Registrar.
- If the manager/s or shareholder/s are present in Bulgaria at the time of the registration, the cost will be = 600 euros.
- And if the manager/s or shareholder/s is not present for the notarisation of the documents in the country, the cost will be = 800 euros.
- If the owner of the company will be a foreign legal entity, the cost will be = 1200 euros.
The breakdown of the taxes and fees included in the registration fee are:
- Notary fees
- Government fees
- Opening an initial capital bank account
- Translation and legislation of documents at the Ministry of Foreign Affairs
- Registration in the Registry Agency
- Commercial Register fee
It normally takes three days to complete the whole process.
But when the required notarised documents are abroad (that is, in the case where the manager or shareholders are not present in Bulgari).
Also, the registration duration may extend.
And so for all new investors and entrepreneurs were looking for a platform where they can interact and acquire financial assistance in Bulgari.
There are two major networks I will recommend for you, they are:
- The Bulgarian Business Angels Network, and
- Bulgarian Association of Business Angels
The business policy in Bulgarian is a little bit flexible than in other European nations.
But despite its flexibility, do well to abide by them all.
Therefore, going against them may be fatal to your business growth or survival.