Forex broker license in Bulgaria

Published:
May 9, 2023
river ropotamo south 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.

Can you trade FX in Bulgaria?

FX trading is legal in country. Also, it is controlled by the Financial Supervisory Commission (FSC).

How much does a Bulgaria Forex license cost?

To obtain this info, contact the specialists of our company. They will supply you with all the information you need and answer all your questions.

How do you get a forex trader permission in Bulgaria?

To achieve a permission, you must meet the basic requirements:
1. Organization of corporate legal papers;
2. Registration of the business-company as an active business;
3. State Duty;
4. Drawing up a business plan;
5. Setting up the needed AML/KYC procedures;
6. Opening a corporate bank account.

Related insights

Crypto-tax rules, mandate data sharing from crypto-businesses

In an influential development for the cryptocurrency industry, the EU has recently adopted a groundbreaking law that imposes a mandatory requirement on crypto corporations to disclose consumer holdings. This new direction, known as the Eighth Directive on Administrative Cooperation (DAC8), signifies a pivotal shift in the adjustment terrain, aiming to enhance translucence and ensure conformity…

Read more 05.12.2023

How to sell a restaurant in 2024

Selling a restaurant is a complex method that requires careful planning, strategic decision-making, and a deep understanding of the current market trends. As we step into 2024, the dynamics of the restaurant enterprise continue to evolve, influenced by factors such as technology, changing consumer preferences, and economic conditions. In this comprehensive guide, we will explore…

Read more 05.12.2023

How to Buy a Restaurant: The 9 Steps from Inquiry to Closing

Hopping on the journey of owning a restaurant is an exciting yet complex endeavor, comprising nine crucial steps. This in-depth guide aims to provide aspiring restaurateurs with a detailed understanding and a strategic approach to navigate the intricate process of acquiring a dining establishment. Beyond the initial allure of selecting a restaurant and completing a…

Read more 04.12.2023

Instant Payments

In a groundbreaking development for the European Union and European Economic Area countries, the Council and the European Parliament have reached a preliminary consensus on the proposal for instant remittances. This innovative move is set to transform the economic landscape, enhancing the accessibility of instant payment options in euro to consumers and business-companies for consumers…

Read more 04.12.2023

VAT transactional reporting obligation for remittances

In the ever-evolving landscape of monetary adjustments, the European Union (EU) has introduced a consequential development known as the VAT transactional reporting commitment for remittances, commonly referred to as CESOP (Cross-Border Electronic Sales of Services and Payment). Effective from the year 2024, this directive mandates that all EU Payment Service Providers (PSPs) record and report…

Read more 04.12.2023

Forex license in Cook Islands

The Cook Islands, renowned for its breathtaking natural beauty and warm hospitality, has emerged as an attractive destination for commerces looking to obtain various monetary licenses. In this article, we will delve into the processes and advantages of securing Forex licenses, Securities Dealer permits, and Assets Exchanging permits in the Cook Islands. With a focus…

Read more 10.11.2023

Kahnawake Gambling Permission: A Great Chance for Startups

In the dynamic and ever-evolving world of e-gamble, the right licensing can make or break a startup. One option that has gained distinction in recent years is the Canadian Gamble License. Situated in the Mohawk Territory of Kahnawake in Canada, this permission provides a unique and advantageous opportunity for gamble startups. In this article, we…

Read more 06.11.2023

Forex License in Fiji

The Forex market is a highly dynamic and liquid economic market that attracts traders and depositors from all over the world. Fiji is an attractive destination for corporations looking to enter the Forex trading industry, thanks to its stable political circumstances, strong economic system, and strategic location in the Pacific region. However, to operate legally…

Read more 02.11.2023

EMI License in Belgium

Belgium, strategically situated in the heart of Europe and renowned for its rich culture, delectable chocolates, and timeless historical appeal, transcends its cultural prominence to establish itself as a unique player in the realm of financial services. It emerges as an enticing focal point for enterprises seeking Electronic Money Institution (EMI) licenses. These licenses serve…

Read more 01.11.2023

EMI and PI license in Spain

Within the ever-evolving realm of financial innovation, Spain, a beacon within the Iberian Peninsula, beckons intrepid souls driven by an insatiable appetite to explore the uncharted horizons of the electronic money and payment service sector. The convergence of E-Money Institution (EMI) and Payment Institution (PI) licensing endeavors within this dynamic crucible sets the stage for…

Read more 01.11.2023

Gambling license obtaining in Romania

Over a span of three decades, Romania has honed its approach to managing the landscape of chance and risk devices. During this extensive period, the government has enacted and refined a series of significant legislative acts, each imbuing the domain with new layers of regulatory complexity. In the contemporary context, governance over this sphere falls…

Read more 01.11.2023

MSB license in Grenada

Nestled in the eastern Caribbean, the tri-island state of Grenada offers much more than its stunning beaches and lush landscapes. It’s also a prime destination for businesses looking to establish a Money Services Business (MSB). The process of obtaining an MSB license in Grenada is straightforward and offers an array of opportunities in the monetary…

Read more 26.10.2023