Relocating your road transport business to Bulgaria.

Reducing operational business costs is a matter that interests every business owner. With increasing competition within the EU this occurs as a fundamental opportunity to beat your competitors making your business much more successful.

More and more companies from different business niches are discovering the benefits of doing business in Bulgaria and establish businesses, and even relocate existing one to Bulgaria.  This also applies to companies operating as a road transportation service provider.

As of 4 December 2011 admission to the occupation of road haulage operator and road passenger transport operator in the European Union is governed by Regulation (EC) No 1071/2009

Is that true and what really makes it beneficial? Is it legal?

-          In general Bulgaria offers the lowest corporate tax within all EU state members as of 10% on net profit and lowest operational cost;

-          Cheaper EU road transport operator’s license of around €1000;

-          Much cheaper vehicle insurance starting off – €500;

-          Cheaper MOT, TUV, ITV, Autokeuring and so on inspection as of €140;

-          Lower expenses for salaries for traditionally high qualified employees;

-          Lower annual truck tax;

-          Lower levels of financial bank guarantees required namely €9000 for the first and €5000 for every next truck;

-          Lower expenses for accountancy and legal support;

-          You may continue to use your existing drivers and transport managers;

-          Lower social insurance contributions;

-          It’s absolutely legal

In addition we should refer besides the strategic geographic location of Bulgaria and a crossroads between Europe and Asia.

 Strategic geographic location of Bulgaria

Strategic geographic location of Bulgaria

It’s easy to start up a new fully operational limited liability company in a few weeks only. Few weeks are needed as well to grant EU transport operators license.

Limited Liability Company can be constituted by one or more natural persons or entities. Liability is limited to the amount of subscribed foundation capital and minimum foundation capital by law is only 1 euro.

There are 4 criteria that the operator must fill to access the profession according to Regulation (EC) No 1071/2009:

  • Good repute criterion, which shall ensure the adequate entrepreneurial ethical conduct. Manipulating a Tachograph, for example, would be considered a serious infringement leading to the loss of the good repute.
  • Financial standing, which requires operators to have available capital assets every annual accounting year of at least € 9.000 for the first vehicle and € 5.000 for each additional vehicle.
  • Professional competence, which assesses the practical knowledge and aptitude of professionals in the sector by means of an obligatory exam with common arrangements, marking and certificates.
  • To have an effective and stable establishment in a Member State.

In addition all steps could be treated without your personal presence so you can stay focused on your current activity.

If everything mentioned here makes sense to you and can help to improve the competitiveness worthwhile to conduct more in-depth financial analysis.
If you have any further questions you know how to find us.

 

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