Eternity Law International News Foreх broker licensе in Bulgariа

Foreх broker licensе in Bulgariа

Published:
January 3, 2023

Gone are the days when only multinational companies with an almost unlimited budget could apply for and obtain a financial licensе in a respected jurisdiction (eg EU, US, Canada, etc.). Today, an increasing number of conventional companies are obtaining financial licensеs, armed with a well-thought-out concept and a sustainable business model. While obtaining financial licensеs still involves significant costs and obligations, the process has become much cheaper and easier. As a result, the number of foreх licensеs issued worldwide has increased dramatically in recent years.

Foreх brokers wishing to obtain a licensе in the European Union are increasingly turning their attention to Bulgariа. While a foreх broker licensе in Bulgariа can be obtained from any of the 28 participating countries, some offer a faster and easier application process. And Bulgariа is one of them.

Bulgariа is an ideal option for those who want to work in Europe, but are not yet ready to pay for the costly maintenance of a Cypriot or Maltese company. All financial licensеs issued in the EU are subject to the MiFID II directive, which was issued by the European Commission in order to harmonize the provision of financial services in the European Union. Thanks to this directive, having received a licensе in one of the EU member states, you can work in all the others.

For example, those who have a Bulgariаn foreх licensе and want to open another branch in Germany or the UK simply need to notify the authorities of the chosen country. Although the notification process is more than just sending a letter and will require corporate documentation and proof of permits, it is still much easier than obtaining a licensе in each individual state.

Benefits of obtaining a foreх licensе Bulgariа

Here are just some of the reasons why Bulgariа is attractive to foreх brokers:

  • Bulgariа demonstrates stable economic growth and has the lowest corporate tax in the EU – only 10%.
  • Profits, interest, dividends, capital gains and any other income can be freely transferred abroad without restrictions.
  • The average salary in Bulgariа is lower than in other EU countries. This means that labor costs will be lower.
  • There are two types of licensеs to choose from.
  • The minimum capital requirement is 250 thousand Bulgariаn leva (about 128 thousand euros).
  • Only 25% of the minimum capital needs to be paid before applying. The balance (75%) can be paid within 14 days after the licensе is issued.
  • Bulgariа’s strategic location provides convenient access to the entire EU and the markets of Central and Eastern Europe.
  • The cost of registering and maintaining a company, including accounting, is lower than in other European jurisdictions.

The main attractiveness of Bulgariа as a country for obtaining a foreх licensе Bulgariа lies in a convenient tax climate and an inexpensive “standard of living”, that is, in relatively low costs for maintaining a company and labor. Not everyone can open and maintain a full-fledged office with 6-7 employees in most European financial hubs, but in Bulgariа it is possible, and the office will be located next to the same hubs.

How to get an FX licensе in Bulgariа?

When requesting permission for foreх activities, in addition to the documents of shareholders and directors, a detailed business plan for the next 3 years will be required, indicating the expected income.

Here is how the process how to obtain a Bulgariаn foreх licensе looks like step by step:

  • First, we will evaluate your brokerage activity in order to prepare an application.
  • After the assessment, we will provide a list of required documents.
  • The next step is choosing a name and registering a local company in Bulgariа.
  • After successful registration, the licensе application process will begin.
  • When applying, we take over communication with the regulatory body and will let you know if additional documents are requested.
  • After the licensе is issued, we will open bank accounts necessary for doing business.

Important facts about the FX licensе in Bulgariа.

When you want to Foreх licensе for sale in Bulgariа, you could have some questions, one of them could be “Does Bulgariа require a foreх licensе”, and there is the answer:

  • The pure agency model (A-book) requires a capital of €125,000.
  • The market creation model requires a capital of €750,000.
  • A local office in Bulgariа is a strict requirement, a physical office, and local directors must also be appointed.
  • The total time for obtaining a licensе varies from 6 to 8 months.

Legislative regulations of the foreх regulation

The Markets in Financial Instruments Act is the main instrument of the country’s government, thanks to which it controls economic services, as well as the movement of funds in online markets. The regulation lists several basic requirements that all licensеes must comply with:

  1. Permissible activities: transactions with securities, participation in mutual funds, trading in options, futures, contracts, debt obligations and other material indicators, as well as transactions in the foreign exchange market involving any type of currency pairs.
  2. Representation: when establishing a new broker, the main office of his company must be located within the boundaries of the jurisdiction. It is not necessary to choose the largest cities.
  3. Management: at least two directors are required, both must be residents of EU countries. Before being appointed, the applicant must confirm the qualifications of the directorate, the level of education of each manager, their work experience and qualifications.
  4. Audit: Hiring an accountant is a must. Bulgariа requires constant submission of financial statements, so the services of a specialist are justified. Each year, the founder will hire an independent auditor to undergo a full audit.
  5. Share capital: in the jurisdiction there are two types of licensеs for different types of companies. First – STP requires depositing 125 thousand euros into the bank account, the account balance does not decrease. The second – Market Maker – has a large set of functions and allows you to do business using almost all known financial instruments.This factor increases the size of the authorized capital to 740 thousand euros.

The authorized capital is contributed by the shareholder in installments. These funds must be obtained in an honest way, so additional data on their origin and extended information about the beneficiary may be required. It takes about 5 months from the date of application by the applicant to review all documents and study the business plan.

Can you trade foreх in Bulgariа?

Foreх trading in Bulgariа is legal. This is regulated by the Financial Conduct Authority (FSC). Foreх Brokers in Bulgariа who want to offer services in the country only need to be registered in any EU country to obtain authorization.

How much does a Bulgariа foreх licensе cost?

The authorized capital cannot be used in economic activities and will be frozen in a Bulgariаn bank account. State licensе fees are much lower than in Cyprus. For example, for the consideration of documents for a stp licensе, the commission will take approximately 2200 euros.

How do you get a foreх trader licensе in Bulgariа?

Here is how the process of obtaining a Bulgariаn foreх licensе looks like step by step:
1. First, we will evaluate your brokerage activity in order to prepare an application.
2. After the assessment, we will provide a list of required documents.
3. The next step is choosing a name and registering a local company in Bulgariа.
4. After successful registration, the licensе application process will begin.
5. When applying, we take over communication with the regulatory body and will let you know if additional documents are requested.
6. After the licensе is issued, we will open bank accounts necessary for doing business.

You can see our current offers in the categories “Cryptocoins and licensing of cryptocurrency operations”, “Ready-made companies”, “Banks for sale” and “Licenses for sale”.

Businesses for sale

Forex Broker License in Czech Republic

Europe, UK Forex brokers
Czech is a fairly progressive country accepting and strongly supporting innovative technological developments and trends. Forex trading in this jurisdiction is officially allowed. Investors are given the opportunity to join EU commercial areas and take excellence of privileges that it grants. Czech Republic has developed a strong and strict yet loyal legal and regulative framework...

ESTONIAN FOREX BROKER LICENCE

Europe, Estonia Forex brokers
At the legislative level in Estonia, services such as Forex brokerage are classified as investment. For a company that wants to provide these services, it is necessary to obtain an EFSA license. Thus conditions are regulated in accordance with domestic Securities Market Act, and MIFID the EU directive on financial instruments in the EU markets....

FOREX BROKER LICENSE ON CYPRUS FOR SALE

Europe, Cyprus Forex brokers
CIF LICENSE ON CYPRUS The CIF was recently authorized by CySEC to offer STP Brokerage services on CFDs and hold clients funds/assets. The CIF has fully operational corporate and client fund bank accounts with EU credit institutions (UK and Cyprus) and is ready to on-board Clients! Licenses for: Reception & Transmission of Orders, Execution of Orders. It...

You could be interested

Money Service Operator License in Hong Kong

If a company provides services in financial field, it must obtain a MSO – Money Service Operator license, which is issued by the Department of Customs Duties and Excise (CCE). This license required in accordance with the provisions of the Anti-Money Laundering and Terrorist Financing Ordinance, Chapter 615 of the Hong Kong Code of Laws...

ISO 14064 Verification

Floods, droughts, record temperatures – backdrop of all this, solving problem of climate changes has become one of the most pressing problems in the world. These events are one of the most important obstacles that countries, governments, businesses and humankind face in a resilient world. Thus, several applications for monitoring and mitigating fluctuations were put...

Company liquidation in Montenegro

Suspending a venture’s operation is a complex course of action that demands cautious consideration to legislative regulations and laws. Entities usually resort to that procedure when all of their primary duties are carried out, however, the reasons for that decision can vary. It is principal to comprehend the concept of closing down the organization, mainly...

Company registration Delaware

Registration fee EUR 870.00 Company renewal cost EUR 790.00 Number of directors 1 Corporate tax 0.00% Paid Authorized Capital 0.00 Reporting requirements no General information about the company in Delaware Company type – Limited Liability Company (LLC); The time frame for company registration – 2 to 3 days; The Delaware Secretary of State is the...

Removal from Interpol Database in USA

Being flagged in Interpol’s system can mess up your life in ways you might not expect—especially if you’re living in, traveling to, or doing business with the United States. Whether the alert is based on a legit criminal charge, a political setup, or a long-resolved situation, you’ve got options—but only if you know how to...

EMI license in Sweden

Introduction Sweden has emerged as a financial technology (FinTech) haven in recent years, attracting innovative companies from around the globe. A vital component of this FinTech ecosystem is the Electronic Money Institution (EMI) license. This license empowers businesses to operate as financial institutions, offering electronic payment services and electronic money issuance. In this article, we...

Related posts

Forex broker license in Mauritius

More than 20 years ago, the leaders of Mauritius created a favorable environment for corporations in the provision of financial-services. Since then, this small island state in the Indian Ocean has become one of the most considerable monetary centers on the planet. Today many legal-entities working in this area would like to get a Mauritius...

Forex broker in Bulgaria

To Forex brokers contemplating expansion in Europe but unwilling to bear the hefty cost of maintaining a Cypriot or Maltese licensed company, we strongly advise considering Forex broker in Bulgaria license. Key highlights Broker in Bulgaria is formally categorized as investment enterprise and operate under an Investment Services License (ISL), which outlines the allowable array...

Vanuatu Forex Broker License

The direction of Forex is now quite progressive and rapidly developing. Many jurisdictions actively support the introduction of Forex trading, trying to be loyal to brokers and create a clear regulatory framework for regulating their activities. Vanuatu is one such offshore country. To obtain a license for the activities of a Forex company, it is...

Forex Broker License in Cyprus

Forex-trading is making money on currency exchanging deals. Forex-market exists globally and its turnover exceeds millions of dollars. Cyprus is one of the first countries to legalize Forex trading and has gone to great lengths to keep traders safe by offering them quality, greatly-full and strict regulation. However, despite the severity of certain points of...

Forex broker account

The world’s largest financial market is Forex, which exchanges currencies at market prices. Back in 1977, the cash flow in the Forex market was more than 5 billion, and in 2016 it was 5 trillion dollars. He replaced the established standards for the freedom of currency exchange. Additional financial flows were needed for different countries. Over time, people...

Forex broker license in Estonia

The fact that a forex broker has a license to carry out professional activities is a key criterion in choosing a forex broker for traders. Licenses show which regulator controls the activities and quality of the company. Estonia is an excellent choice when choosing a jurisdiction to obtain a forex license due to the fact...
Fill the blank: