This year saw the entry into force of the long-awaited Ordinance on the terms and conditions for issuing, extending and revoking a certificate for a high-tech and/or innovative project called “Startup Visa” (the Ordinance). The adoption of the Ordinance in question was foreseen as early as 2021 with the amendments to the Law on Foreigners in the Republic of Bulgaria (ZChRB). With the addition of Art. 24p of the Federal Law on Foreigners – citizens of third countries (non-EU) to acquire the status of long-term residents in the country, provided that they wish to develop a high-tech and/or innovative project in Bulgaria and have a permit issued by the Ministry of Innovation and growth, the corresponding certificate for a high-tech and/or innovative project called “Startup Visa”.
According to the reasons of the legislator, the main goal of the introduction of the “Startup visa” is to promote foreign investments in Bulgaria, by attracting to the country highly specialized entrepreneurs from countries outside the European Union in a number of key innovative industries, including: artificial intelligence, cyber security, hardware, fintech etc., creating an easier possibility for their residence in the country.
Entrepreneurs who wish to obtain a “Startup Visa” must certify their project at the State Agency for Scientific Research and Innovation (DENAI). In order to obtain a long-term residence permit in the country, in addition to the certificate from DENMARK, applicants must:
- to obtain a type “D” visa (for long-term residence), giving the right to multiple entries into the territory of the Republic of Bulgaria within the period of its validity;
- to own at least 50% of the shares/shares in an established Bulgarian company, whose subject of activity is the one declared when issuing the certificate for a high-tech and/or innovative project (“Startup visa”), as the law does not introduce requirements regarding the amount of capital;
- What is the procedure for acquiring a Startup visa?
The procedure for issuing a certificate for a high-tech and/or innovative project (Startup visa) begins with the submission of an application under an approved a sample in the Ministry of Innovation and Growth, together with applications provided by law.
Applicants can complete the application in English and send it to the Ministry of Innovation and Growth electronically.
The application shall state the basic information of the applicant and the company. In addition, the activity/product or service must be presented, calculations, analyzes and forecasts for the approximate amount of production and for the future growth of income and expenses, analysis of the market, customer and partner network must be presented.
Identity documents, business plan and presentation, a document for a valid patent, an investment contract with a specialized international equity and risk investment fund for no less than BGN 100,000, a contract or a letter of intent to invest from a fund are attached to the application for equity or risk investing in the Republic of Bulgaria, a document certifying the availability of funds in the applicant’s possession, etc.
For each received application, the Minister of Innovation and Growth forms an Expert Council. Representatives of the Ministry of Education, the academic community, the Patent Office, BAS, as well as representatives of branch organizations, representatives of non-profit legal entities, and practitioners can participate in it. The Council is an advisory body and gives an opinion to the Minister of Innovation and Growth on the applications received.
The application and the attached documents are considered by the Expert Council within 30 days of its submission. In the case of established incompleteness/inaccuracies, the applicant is given a 14-day period to remove them, after which a new one-month period for ruling begins. After the expiration of the term, the Expert Council submits to the Minister of Innovation and Growth a report containing a motivated proposal for issuing or refusing to issue the certificate (Startup visa).
The Minister of Innovation and Growth issues a decision to issue the certificate or issues a refusal. The term of validity of the Startup visa is 1 (one) year, counted from the date of issue and. It is issued in the name of the applicant, and the same can indicate up to two participants in the team for development and implementation of the project, as long as it is in the appendices to the application that the need for their participation is justified. In the event that the minister issues a refusal, then the refusal is subject to appeal in accordance with the Administrative Procedure Code.
- Criteria for evaluating the application for acquiring a Startup visa
The report of the Expert Council, which contains a reasoned proposal for issuing or refusing to issue the certificate, is based on an assessment of six criteria:
- Security of the applicant’s means of support – max. 3 items
- Financial forecasts and available capital – max. 3 items
- Client network – max. 1 item
- Investments – max. 1 item
- Valid patent or utility model registration – max. 1 item
- Business plan and registration – max. 5 items
The minimum number of points needed to issue the certificate is 8 points out of the maximum 14 points.
- Extension of the issued Startup visa
Within a period of up to one month before the expiry of the initial period of the issued Startup visa, the applicant submits electronically to the Ministry of Innovation and Growth information on the actions taken so far regarding his participation as a partner or shareholder in a Bulgarian commercial company and the possession of no less from 50 percent of the capital of the company, whose subject of activity is the one declared when issuing the certificate.
After the above information is received by the Ministry of Innovation and Growth, it is examined by the same Expert Council. Within one month of its receipt, the Council submits a report to the Minister of Innovation and Growth, which contains an opinion/confirmation regarding the fulfillment of the requirements for issuing the Startup visa. The Minister examines the report and makes a decision on it and can extend the term of the issued certificate by 2 years or issue a refusal. The refusal is again subject to appeal in accordance with the Administrative Procedure Code.
