After the successful registration of the first Variable Capital Company (VCC) in Bulgaria, we talk with attorney Nevena Staykova from Dimitrova, Staykova & Partners about the advantages of this new type of business entity and how it will transform the Bulgarian startup ecosystem.

"The new corporate form is designed for startups, but many existing businesses may recognize the tools we have introduced and decide that they are more suitable for achieving their business goals," says attorney Staykova.

Revolution in the Startup Ecosystem

„With the adoption of the VCC, anyone can now register a company without needing an initial capital of 50,000 BGN," explains Staykova. "Until now, there was no choice – either you used the complex and expensive Joint-Stock Company (JSC) with all its advantages or the more accessible Limited Liability Company (LLC) with just 2 BGN in capital but all its restrictions."

Practical Advantages

One of the key innovations of the VCC is the removal of certain administrative burdens. "In my practice, I have seen clients wait for months for approval to open a fundraising account for company registration, only to be denied by the bank without explanation," shares attorney Staykova. With a VCC, this issue is eliminated, allowing the company to open a bank account immediately after registration.

Flexibility in Share Management

A particularly innovative feature is the ability for a company to have shares valued at just 0.01 BGN meaning that with a minimal capital of 2 BGN, 200 shares can be allocated. This significantly enhances structuring opportunities for ownership and attracting investors.

Our Solution

In light of these new opportunities, we offer a comprehensive solution for entrepreneurs who want to take full advantage of the benefits of the VCC entirely online:

• Company registration

• Express bank account opening through our payment institution

Is Your Business a Fit?

The VCC is available to companies that meet the following criteria:

• Shareholders are EU citizens

• Fewer than 50 employees

• Annual turnover up to 4 million BGN and/or

• Assets up to 4 million BGN

Next Steps

As pioneers in VCC registration in Bulgaria, we are ready to support entrepreneurs looking to leverage this new legal structure. Contact us for a free consultation to discuss how we can help grow your business.