Bulgaria is probably the only country in the EU with a 0% capital tax. My observations are that the management of most Bulgarian companies is not aware of the advantages of the public offering in Bulgaria, says BIODIT Executive Director Julian Sofroniev. He spoke about the challenges on the path from private to public company in front of representatives from more than 20 dynamically developing companies, investors, pension funders, lawyers and bankers. The workshop-discussion was the first such event organized by BSE-Sofia on initiative of BIODIT with the active cooperation of one of the leading investment intermediaries – Karoll Financial Group.
There are many companies like BIODIT that are developing dynamically from startup to scale up phase but need access to markets and capital to grow, pointed out Sofroniev. That is how he came to the idea of such a meeting. In Bulgaria and Eastern Europe the big investors and big markets like the United States are missing. We do not have smart money and we cannot follow the path of the Valley companies, but we can follow our own path. The public offering here gives flexibility and can provide the capital needed for companies to continue their grow, says the BIODIT CEO.
According to him, the stock market allows investors who till this moment did not have the tools to invest in a company, to do so and to have equal rights with the big investors and ventures. Sofroniev says the process of filling stocks on BSE-Sofia is not complicated despite the delay caused by problems in the Commercial Register this year. Among the advantages of this step, Sofroniev emphasized on: the capital gains tax exemption and the low rate of 5% dividend tax. BIODIT is expected to be the first company to take advantage of the voucher program to support SMEs listing on the stock market. The BSE has also highlighted the forthcoming start of the stock market growth, which allows the raising up to EUR 1 million without a prospectus.