Company Registration in Bulgaria
Company registration in Bulgaria is becoming more and more popular due to several compelling reasons. First and foremost, the cost-effectiveness of establishing a business in Bulgaria is a major draw for entrepreneurs and investors. The relatively low registration fees, combined with affordable operational costs, make it an attractive option for startups and established companies looking to expand their operations.
Additionally, Bulgaria’s membership in the European Union (EU) provides significant advantages for businesses. EU legislation facilitates easier trade and commerce across member states, allowing companies registered in Bulgaria to access a vast market without the complexities of tariffs and trade barriers. This access to the EU market is particularly appealing for businesses looking to scale their operations internationally.
An important and decisive factor is the importance of having a serious and reliable partner when establishing a company. In Bulgaria, there are numerous professional services available, including legal, accounting, and consulting firms that specialize in helping foreign investors navigate the registration process. These partners can provide valuable insights into local regulations, tax incentives, and operational best practices, ensuring that businesses are set up for success from the outset.
Moreover, Bulgaria offers a favorable tax environment, with one of the lowest corporate tax rates in the EU, making it an excellent choice for profit-oriented businesses. The country also boasts a skilled workforce, particularly in sectors such as information technology, engineering, and finance, which further enhances its attractiveness as a business destination.
The currency is the Bulgarian Leva, which will soon be replaced by the Euro. This allows you to avoid high conversion fees in the future when registering a company in Bulgaria.
Steps in opening a company in Bulgaria
The first step is to think about a name for your company in Bulgaria. After you name as your proposal we can check if this name is already taken. It is popular to use English company names that then will be transliterated into Cyrillic.
The question that needs to be answered as the next one is whether you want to be the representative of your company or someone else should occupy this position. We recommend that you become the CEO of your company.
After depositing the share capital for your company you can submit the Statute. Then you have to wait for the certification of your business activity. Once completed, the BULSTAT number can be obtained.
Types of companies in Bulgaria
The company formation in Bulgaria offers a broad variety of company types. In the following section we introduce you to the most important ones.
Types of Business Entities in Bulgaria
Sole Limited Liability Company (EOOD)
The most popular one is the EOOD, a sole limited liabilty company (LLC). The single owner needs to pay in a minimum of 2 Leva (around 1 Euro). This makes a huge difference compared e.g. to Germany LLCs where you have to pay in a capital of the company in the amount of 25.000 Euro.
Limited Liability Company (OOD)
The OOD is a popular choice for small to medium-sized businesses. With just 2 BGN minimum share capital, it is a cost-effective option offering limited liability to shareholders. The structure allows for flexibility in management and can have between 2 to 50 members. OODs are often favored due to their simplified accounting and reporting requirements compared to larger entities.
Joint Stock Company (AD)
Ideal for larger enterprises, the AD requires a minimum capital of 50,000 BGN, making it suitable for businesses looking to attract significant investment. This structure allows for public share trading on the Bulgarian Stock Exchange, which can facilitate capital raising from a broader investor base. The AD can issue different types of shares and provides limited liability to its shareholders, protecting their personal assets.
Branch and Representative Offices
For companies looking to expand into Bulgaria, establishing a branch or representative office is a practical alternative to full incorporation. A branch operates as an extension of the parent company and can conduct business activities, while a representative office is limited to promotional and liaison activities without engaging in direct commercial transactions. Both options allow foreign companies to explore the Bulgarian market with reduced administrative burdens compared to setting up a new legal entity.
There is also a possiblity of being a Freelancer in Bulgaria, read everything about it in our latest post about the topic!
Best price for company incorporation in Bulgaria and virtual office
Start a business in bulgaria today – 500 € is the entry price for company registration, offering a comprehensive suite of business solutions tailored to meet your company’s needs. Register a company in bulgaria does not have to be an overpriced experience.
Alongside this, we provide virtual office solutions starting from just 50 € per month, making it easy for startups and small businesses to establish a professional presence without the overhead costs of a physical office.
With our virtual office, you get a prestigious business address, mail handling services, and access to meeting rooms when required. This flexibility allows you to focus on growing your business while we handle the administrative tasks.
Whether you need a full-service office package or a simple virtual solution, our offerings are designed to adapt to your business’s evolving needs. Enjoy the benefits of a professional image and operational efficiency at a fraction of the cost.
Our dedicated team is here to support you every step of the way, ensuring you have the resources you need to succeed. Join countless satisfied clients who have leveraged our services to enhance their productivity and streamline their operations. Contact us today to learn more about how we can help you achieve your business goals.
Accounting services in Bulgaria
We offer accounting services for your company in Bulgaria. Even though you did not register with us, we will be happy to help you with your monthly accounting obligation. We work with certified and trustworthy Bulgarian partners. We help you managing social payments, business expense, annual income statement and VAT declarations. If necessary we also assist in Advance Corprate Income tax.
The price for accounting services for your Bulgarian company depends on your individual needs, this is why we will approach you with an tailor-made offer.
INTERNATIONAL BANK ACCOUNT IN BULGARIA
When considering opening a bank account for a bulgarian company, it’s essential to be aware that some banks may require an upfront fee of up to 400€ just to assess the possibility of account creation. These types of banks should generally be avoided, as such practices can indicate a lack of transparency or potentially unfavorable terms for customers.
Instead, it can be beneficial to seek out banks that have established reputations for customer service and reliability. References, such as those provided by us, can be invaluable in identifying trustworthy banking partners. These referrals can help you ascertain which banks are known for their fair practices, customer support, and overall reliability in managing your finances. Establishing a partnership with a bank that has a solid reputation can save you both time and money in the long run.
Economy overview in Bulgaria
Bulgaria is experiencing growth due to several key factors. The country’s strategic location as a gateway between Europe and Asia has made it an attractive destination for foreign investment. In recent years, Bulgaria has seen significant improvements in its business environment, with streamlined regulations and tax incentives encouraging entrepreneurship and economic development.
The IT sector has emerged as a major driver of growth, with Sofia becoming a regional tech hub. Low operating costs and a skilled workforce have attracted numerous international companies to establish operations in Bulgaria. Additionally, the country’s tourism industry has been expanding, capitalizing on its diverse attractions, from Black Sea resorts to ski destinations and cultural heritage sites.
Bulgaria’s accession to the European Union in 2007 has provided access to funding and markets, further boosting economic development. The country has also made strides in improving its infrastructure, enhancing connectivity and attracting more businesses.
Despite challenges such as demographic decline and the need for further reforms, Bulgaria’s stable macroeconomic policies, improving education system, and growing innovation ecosystem continue to contribute to its economic growth and increasing competitiveness on the global stage.
What are the requirements for a company formation in Bulgaria?
The requirements for company formation in Bulgaria include an initial consultation to determine the business structure and legal framework. Key documents include Articles of Association and other company documents. A special bank account must be opened, and a nominal capital of at least 10 BGN deposited.
Duties are payable to local authorities, followed by registration in the Bulgarian Trade Register to obtain a Certificate of Incorporation. The company manager must secure a tax number, complete self-employment registration, and provide social and pension information. These steps ensure legal compliance and readiness to operate within Bulgaria’s business framework.
FAQ
Can a non-resident open a company in Bulgaria?
Yes, for EU-Citizens it is easier than for Non-EU-residents.
How much does it cost to set up a company in Bulgaria?
The costs start from 500€ on. Consult us for an individual offer!
How long does it take to open a company in Bulgaria?
The whole procedure should not take longer than 2 weeks (including BULSTAT number).
Is Bulgaria a good place to start a business?
Yes, Bulgaria offers a low tax environment within the European Union Legal Framework. Furthermore, you can find high skilled employees for an affordable salary.
