What real activity is a trade representative office entitled to carry out?

For a long time, trade representative offices in Bulgaria were opened with a single purpose: to secure residence for the foreign representatives listed in them. But then the rules were tightened, stricter requirements began to be imposed on representative offices, and now, among other things, it is necessary to report on the organisation’s activity. And this is where many heads of representative offices run into serious difficulties: it is widely known that a representative office cannot carry out commercial activity, yet there is almost no information about what activity is permitted. Nevertheless, activity has to be carried out in any case.

Which types of it are permissible? First of all, educational activity, for example studying the Bulgarian language, studying the market, familiarisation with Bulgarian technologies at production facilities, and so on. This also includes obtaining information about the specifics of Bulgarian legislation, the range of goods and services, and the particular features of the target audience in Bulgaria.

Representative offices may also search for potential clients, partners and investors for the parent company. Negotiations with them are another task of the representatives in Bulgaria. It is possible to hold meetings and conferences at which the representative talks about the parent company and promotes its services to interested users, persuades investors to put their funds into the company’s development, establishes links and makes business contacts.

It is possible to search for plots for development and for existing buildings needed to carry out the parent company’s business objectives. For example, the representative’s tasks may include finding a plot for the subsequent construction of an industrial facility and preparing the documentation for the purchase. In this case the transaction itself is carried out by the parent company.

What else? Preparing reports, analytical materials and other documents for the parent company; information support for clients (both actual and potential); building a positive image of the company in Bulgaria; advertising activity.

Evidence of a representative office’s active operation may include advertising publications in print media, contracts for participation in exhibitions and conferences or paid invoices for them, ordered flyers or business cards, and more. These expenses can be reflected in the annual report on the trade representative office’s activity submitted to the National Statistical Institute (NSI) and the Trade Register of the Bulgarian Chamber of Commerce and Industry (BCCI), confirming that the representative office is operating.

To obtain certificates for the representatives, the report to the BCCI must list all the events held, naming the specific representatives who took part in organising them. The more representatives there are, the more active the representative office’s activity must be.

Registration of a trade representative office in Bulgaria

Long-term residence permit in Bulgaria

Accounting services for your company in Bulgaria