"Start-up Visa" - What is next after the adoption of the Ordinance

By Order No. 318 of 07.10.2022 the Council of Ministers adopted the Ordinance on the conditions and procedure for issuance, extension and revocation of a certificate for a high technology and/or innovative project (the "Ordinance") pursuant to Art. 24p, par. 3 by the Act on Foreigners in the Republic of Bulgaria.

What was the necessity of adopting the Ordinance? - The current legislation in Bulgaria cannot be considered competitive with other European countries that have already established rules and measures to attract start-up companies from other countries. The adoption of the Ordinance came as a response to the commitment made by Bulgaria in regard to the implementation of the main goals of the Recovery and Resilience Plan. The introduction of the Start-up Visa intends to build a mechanism to encourage entrepreneurs, attract foreign investment and develop a sustainable and functional procedure. The Ordinance provides for measures that contribute to the implementation of innovation and the advancement of R&D. Thus, Bulgaria will become a hub for developing high-value added products and services. This would naturally pave the way for bringing highly qualified specialists, know-how, investments and business opportunities to Bulgaria.

Until the adoption of Article 24p of the Act on Foreigners in the Republic of Bulgaria and the Ordinance, the Bulgarian legislation was vague and quite terse with regard to high-tech and innovative start-up companies in Bulgaria. Moreover, obtaining a long-term residence permit was too burdening and lagging behind the needs of the business context and the emerging startup ecosystem. The implementation of the Start-up Visa has provided the opportunity to obtain a long-term residence permit in Bulgaria under a simplified procedure, which is similar to those already in force in other EU member states such as the Netherlands or France.

What is the "Start-up visa"? - The Start-up visa is a certificate for a high-tech and/or innovative project[1], which is part of the mandatory documents for obtaining a long-term residence permit pursuant to Art. 24p, paragraph 1 of the Act on Foreigners in the Republic of Bulgaria. The certificate is not an separate type of ground for residence in the for foreigners. In order to obtain a long-term residence permit, it is necessary to fulfil the other requirements provided for in the Act on Foreigners in the Republic of Bulgaria.

Who shall issue the certificate and within what period? - The certificate shall be issued by the Minister of Innovation and Growth within 30 days of the submission of the application form.

Who is eligible to apply for the certificate? - The applicant is any foreigner as stipulated in Article 2 of the Act on Foreigners in the Republic of Bulgaria.

What is the validity period of the certificate? - The term is 1 year from the date of issue. There is a possibility to extend the term of the issued certificate for another 2 years upon fulfillment of the requirements set out in the Act on Foreigners in the Republic of Bulgaria.

Issuance procedure:

1. The foreigner shall submit electronically to the Ministry of Innovation and Growth an application form along with the relevant Appendices as per the Ordinance, including a business plan, project presentation, etc. The application may be submitted in Bulgarian or English;

2. A Board of Experts is to be formed as an advisory body to assess the information submitted by the applicant, according to predetermined criteria, and subsequently submit a report to the Minister of Innovation and Growth with a proposal to issue or refuse a certificate for a high-tech or innovative project. Each information and document submitted by the applicant shall be assessed using the scoring system set out in the Ordinance. The minimum number of points to be collected is 8.

3. The Minister of Innovation and Growth shall rule on the report with a decision to issue or refuse the certificate.

The Ordinance does not require fees for the issuance of a certificate for a high-tech and/or innovative project or for its extension.

This article shall not be considered as legal advice, legal opinion or consultation and should not be taken as a sufficient means of taking any action in respect of the procedure and information described above.

[1] “High-tech" is a project based on the application of high technology to the production of new high-tech products and/or services. High technologies are those of high complexity and the use of which requires specialised knowledge and skills.

"Innovative" is a project based on technology, the result of scientific progress and the latest scientific discoveries in the field and/or the implementation of new, previously unknown models, methods, practices. Such a project has the potential to create a significant difference compared to the current situation and to be a driving force for change in a particular sector or market. The project shall ensure the innovativeness and commercial viability of the innovation by fulfilling at least one of the following conditions: (i) the innovation is protected by a valid invention patent; (ii) the innovation is protected by a valid utility model registration certificate; (iii) the proposed innovation is a novelty on the global/European market and is outperforming alternative solutions.