{"id":6056,"date":"2019-01-08T00:00:00","date_gmt":"2019-01-08T00:00:00","guid":{"rendered":"http:\/\/localhost\/test_manager\/doing-business-in-bulgaria\/"},"modified":"2019-07-09T06:44:36","modified_gmt":"2019-07-09T06:44:36","slug":"doing-business-in-bulgaria","status":"publish","type":"post","link":"http:\/\/managersoffice.net\/el\/doing-business-in-bulgaria\/","title":{"rendered":"Doing Business in Bulgarian Market"},"content":{"rendered":"

FINANCIAL SYSTEM<\/strong><\/p>\n

CENTRAL BANK AND COMMERCIAL BANKING SECTOR Amendments to the Bulgarian National Bank (BNB) law, effective as of January 2005, ensure the complete institutional,\u00a0 financial and functional independence of the BNB. After the introduction of a Currency Board in 1997, the number of monetary policy instruments at the disposal of BNB was\u00a0 significantly reduced. Bad loans to enterprises were converted by law into state bonds with low interest rates for the first six years. The tightening of regulatory controls and the\u00a0 positive effects brought about by the introduction of the Currency Board have helped the sector to gradually regain confidence.<\/span><\/span><\/p>\n

The banking system has now stabilised and continues to mature. The market is dominated by five large banks, which control about 56% of the system\u2019s total assets. High\u00a0 corporate liquidity, coupled with attractive terms and rates on deposits, have contributed to a high level of deposit concentration. <\/span><\/span><\/p>\n

Bulgaria has almost completed the privatisation of its state-owned banks. About 90% of Bulgarian bank assets are owned by large foreign banks, already well-established in central and Eastern Europe or by banks that are committed to achieving bigger market shares in the region. Some of the major shortfalls of the banking sector include a sluggish\u00a0 corporate loan-granting process and underdeveloped e-banking.<\/span><\/span><\/p>\n

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CURRENCY<\/span><\/span><\/p>\n

The introduction of the Currency Board in the country in July 1997 led to improved confidence in the local currency, exchange rate predictability and lower inflation. After the introduction of the Board, all constraints on trading with foreign currency within the country were removed. Local banks can sell hard currency to physical and legal entities<\/span><\/span> without any limitations.<\/span><\/span><\/p>\n

The currency unit in Bulgaria is the Bulgarian Lev (BGN). At present the BGN is fixed to the EUR at the rate of BGN 1.95583 per EUR 1. The Bulgarian National Bank announces reference rates of the Lev to the other major foreign currencies on the basis of their international market rates.<\/span><\/span><\/p>\n

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SETTING UP A BUSINESS<\/strong> FORMS OF ENTERPRISE<\/strong><\/span><\/span><\/p>\n

The Bulgarian Commercial Act provides the main framework for the setting up and governance of commercial entities in Bulgaria. Foreign persons can do business in Bulgaria
\n<\/span><\/span><\/p>\n

without incorporation through a permanent establishment. Under Bulgarian law they can also use the following forms of commercial business organisation:<\/span><\/span><\/p>\n