Forex broker license in Bulgaria

Despite the wide choice of EU member states to acquire a permission, there are jurisdictions that offer a faster and more efficient request procedure, one of which is state. An additional advantage for currency brokers of working with a permitted brokerage firm is relatively lower costs compared to other states. We will tell you everything about the Forex license Bulgaria and acquiring it in more detail in this article.

Why choose Bulgaria?

Bulgaria is a full member of the EU, supervised and regulated by the Monetary Supervisory Commission (FSC). Licensed organizations are obliged to comply with the rules and regulations established by them from time to time. Apart from the EU regulatory advantages, the country has some other advantages that make it attractive to many Forex brokers. Some main benefits of state:

• Bulgaria has a stable and predictable economy with the lowest corporate tax in the EU at only 10%
• Profits, interest, dividends, fund gains and any other related income derived from the sale of shares in such investments may be freely remitted abroad without any restrictions
• The usual salary in Bulgaria is relatively low in the entire European Union (EU). Thus, the low cost of labor combined with the simplicity of the tax system makes it the most suitable for business
• There are two types of permissions to choose from

You can contact our company for help. We will guide you through all the necessary procedures, prepare the papers required and must fully to successfully register your Forex broker license in Bulgaria with the governing body FSC of country.

Advantages of Bulgaria

The country is advantageous for acquiring a FSC Forex Broker License in Bulgaria not only because of its location, which opens access to the Europe, but also here there are key advantages that make country even more attractive for acquiring a Forex license for sale in Bulgaria:

• Stability in the economic and legislative spheres;
• One of the lowest corporate taxes in the European Union — 10%;
• The possibility of hiring a highly qualified employee at a relatively low level of remuneration;

Regulator of Forex broker license in Bulgaria

Every firm that wants to operate and acquire a permit in the Bulgarian foreign interchange market must be registered as an investment intermediary in the country and acquire a license from the Bulgarian Financial Supervisory Commission. This statutory body operates under the auspices of the European MiFID. Foreign companies follow the rules set out by MiFID with some special national rules. One of these rules concerns the capital requirements of registered companies.

The country complies with the provisions of the EU Directive MiFID, which was issued by the EU Committee with the aim of harmonizing monetary favors throughout the European Union. This allows brokerage companies to obtain passport rights which entitle them to conduct business in any EU Member State, as permitted by their home country’s regulator. In fact, all brokerage licenses regulated by the MiFID Directive can be used throughout the EU.

Taxation in Bulgaria

Different tax rate systems in country:

• Corporate and individual tax: 10%
• Tax on dividends: 5%
• VAT: 20%

Demands for Bulgarian Forex License

A Forex permission allows trading on the Bulgarian foreign exchange market.

• A Forex brokerage business-company needs to have at least two executive directors who have a relevant higher financial or economic background, proven knowledge in the monetary field. Both directors can come from different locations, not only local specialists can be accepted.
• Forex shall have the necessary appropriate software, hardware and technology to successfully operate and provide services to clients, or otherwise arrange such infrastructure with third party providers. The new FX company must provide the Bulgarian authorities with a detailed and reliable business plan, including revenue forecast, expected profits and losses, etc.
• Forex company need to have a physical location in the state to function as an office.
• The procedure of achieving a permission through FSC takes about 6-7 months from the moment of submitting a complete request.

This protects the interests of investors by ensuring that the newly registered non-citizen exchange company complies with all legal demands, and also ensures the monetary stability of operators and that the info they supply to consumers is accurate and reliable.

Documents that need to be prepared

To obtain Bulgarian FX license, the candidat must supply:

• A notarized duplicate of your ID.
• Utility bill.
• Legal papers confirming the enrollment of a business-company in the country.
• Resume of director/shareholder.
• A copy of the document confirming that the director of the enterprise has higher education.
• Business plan for the next 5 years.

All papers must be in English or it can be a certified translation into English from any language.

Step-by-step instruction to obtain FX license in Bulgaria

1. The process begins with submitting a written request and filling out an enrollment form. The package of legal papers mentioned above must be attached to your application.
2. Based on the submitted legal papers, FSC will determine whether you meet the demands for a license. If the data and papers submitted are incomplete or inconsistent, or if additional information or evidence of correctness is required, FSC will send you a notice requesting additional info and papers.
3. The FSC must make a decision on the request within 3 months of its submission.
4. If the decision is positive, the FSC will issue a written license entitling you to perform certain favors and actions contingent on the type of permission you applied for.

The license gives you the right to perform certain favors and actions within the European Union and the European Economic Area, directly or through the branches of your licensed firm.