Licensing

Portfolio Management License
Bulgaria is the best solution for applicant who prefer to direct their business to the European Union market, as well as the markets of central and Eastern Europe. The activities of Bulgarian licensed entities are supervised by Financial Supervision Commission of Bulgaria (FSC) and governed by Financial Supervision Commission Act and the MiFID Directive.
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Overview

The Financial Supervision Commission of Bulgaria allows a licensed entity to conduct various types of investment activities. Depending on the scope of business activity of a particular applicant, different licensing requirements may apply; in this respect, we advise to consult us before the final decision to apply for a particular license.

Holder of portfolio management license is authorized to receipt and transmit orders on behalf of the clients, intermediate the conclusion of transactions, provide investment advice, manage funds of clients and holding client’s money and/or financial instruments.

Officers of an applicant company must satisfy “fit & proper” requirements in terms of academic background, professional experience in relevant field and clean criminal records. In order to be qualified for license application, an applicant must establish and prove adequate presence in Bulgaria in form of a fully operational local office and hiring local employees. A company can be fully foreign-owned but the number of local employees in a company must outweigh the number of non-local employees (Incl. Directors).

The FSC usually takes up to 3 months to review and either to approve or reject the application.

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Facts & Info for Bulgaria Portfolio management license

Notable features
Procedure
Documents Required

General information

Company structure and staff:

  • Min. 1 shareholder (can be legal entities or natural persons)
  • Min. 2 directors (can be only natural persons)
  • A Company Secretary
  • At least 3 employees with respective education based in a local office in Bulgaria

Taxation

  • Corporate income tax – 10% (the lowest rate in EU)
  • VAT- 20% (EU internal deliveries and the export are free of VAT)
  • Personal income tax – 10%
  • Dividend tax – 5%

Timeframe

4-5 months

around 1 month – gathering and preparation of relevant documents for application

around 1 month – company incorporation and arranging local office and employees

3 months – the process of review of the application by FSC

Capital

Minimum stated capital requirements:

Minimum capital requirement is 125,000.00 EUR (we advise to deposit more to increase probability of granting the license).

The capital of the company cannot be obtained from loan. It must belong to the owner of the company.

Accounting requirements

  • The Company will be required to fill audited financial statements and tax return within 3 months from its balance sheet date
  • Permanent accounting
  • Accounting records should be kept at the local office

Local office - Required

Registered office - Required

Local employees - Required (minimum 3)

In order to obtain a license, the following steps will be carried out:

  • Gathering of relevant KYC documents for initial verification
  • Incorporation of a Bulgarian company
  • Preparation of relevant documents (business plans, manuals and procedures, etc.)
  • Arranging a local office, local employees
  • Application for the license
  • The FSC grants pre-approval
  • The paid-up capital shall be deposited in full within 14 days from the pre-approval (if not already done earlier)
  • Once the license is granted, changes will be submitted to the commercial register and a licensed entity may start the business

In order to obtain license, we will fill all necessary application forms and also acquire apostilled corporate documents.
For that reason, please provide us with the following documents.

  • Notarized passport;
  • Notarized 2nd ID;
  • Certified Utility Bill;
  • Notarized Criminal Record;
  • Bank reference Letter;
  • 2 Character Reference Letters issued by professionals;
  • Certified Diplomas of Higher Education;
  • Detailed CV dated and signed by the applicant;
  • Detailed business plan;
  • Manuals (will be drafted by OFFSHORELICENCE): Anti Money Laundering policy, security policy and procedures and others, if requested by FSC;
  • Detailed information on staff members.

All documentation shall be provided in English language or translated to English by a professional and certified by Notary Public.