Trade Representative Office of a foreign company
on the territory of the Republic of Bulgaria
Trade Representative Office of a foreign company on the territory of the Republic of Bulgaria
Trade Representative Office of a foreign company is non-independent legal entity which has representative functions only and can organise representative activities, such as promotions, exhibitions, trainings or advertising of products or services offered by the foreign legal entity. For this purpose the representative office may enter into various contracts on behalf of the non-resident entity for the purposes of the representative office (eg rental of premises, purchase of stationery etc).
The Office is not entitled to carry out any economic activities or to conduct business. Representative offices may not provide services, sell goods, and respectively no revenue can be generated by such activities. It is used to search on new markets and to creates new business links. The representative office receives the funds for its existence from the mother company.
The representative office may employ its own staff, as the Labour Code explicitly recognizes its quality as an Employer. The representative office is obliged to indicate an address in Bulgaria which is entered upon registration with the Unified Register of Bulgarian Chamber of Commerce and Industry (BCCI). The representative office is established from the date of its registration in BCCI.
Registration of a representative office of a foreign legal entity in the Republic of Bulgaria is one of the preferred ways to obtain Visa type “D” and Bulgarian residence permit for foreigners. It should be noted that up to three foreign citizens can obtain a residence permit based on the registration of a representative office. However, after each of them has received a residence permit, their family members (spouse and children) can also apply for a residence permit.
