Why Set Up Business in Bulgaria?
When one thinks of setting up a business, Bulgaria may not be the first place that comes to mind. However, its strategic location in the south-eastern part of Europe and its position as Europe’s 16th largest country has made it an upcoming business hub that is catered for a variety of populations. Furthermore, it is bordered by Romania, Greece and Serbia, countries that are not foreign to the global building market economy.
One of the benefits of doing business in Bulgaria is its political and economic stability. This is evident in its membership in the European Union, NATO and WTO. The Bulgarian Lev to the Euro is at a rate of 1.96. In line with that, Bulgaria’s standard of living is low compared to other countries in the region making it easy for start-up business purposes.
Also, it is important to consider the low cost of doing business in Bulgaria. Its corporate income tax rate is at 10% while the cost of rent and utilities is also low. There are many business process outsourcing companies that have been successful in Bulgaria including Proxiad Bulgaria, an IT service provider established in 2004, Sutherland Global Services, a major provider of customer service in Europe in the field of telecommunications and Sofica Group, the largest BOP provider in Bulgaria.
Other than that, it is worth mentioning Bulgaria’s access to markets and simple registration for businesses. Bulgaria has ease of access to markets such as the European Union, Turkey, Middle East and North Africa. Moreover, is its low minimum capital required for launching a business, worth 1 Euro, and its easy registration process taking usually only a few days. Certain business sectors offer promotions if investments are made in manufacturing, R & D, IT or education.
In terms of education, skills and language proficiency, Bulgaria is well-advanced. The rate of graduates from universities is high and the working class is extremely skillful and is multilingual. Bulgaria is 25th in the world and 3rd in Europe in terms of Internet speed. It is worth to note that in terms of Bulgarian business culture, most Bulgarians prefer face-to-face interactions rather than calls or faxes. They are rather vocal too and this makes communicating with them easy and efficient.
Although Bulgaria is a foreign and somewhat distant country, it is interesting to study its culture which has a few general similarities to any culture for that matter. For instance, we may be familiar with punctuality, giving gifts, and following a dress code. Sometimes it is easier for us to focus only on the “technical” aspects of setting up a business rather than the business culture of that particular country. Both are equally important and before starting any business, one needs to be aware of these aspects and weigh the pros and cons until a proper decision can be made.
Based on the advantages listed above, one can consider doing business in Bulgaria with an objective mindset and proper direction. The important is to be knowledgeable and informed staying abreast of the current business environment and political climate.