Setting up a company in Bulgaria is one of the simplest and most cost-effective ways to gain access to the European Union market.
With a flat 10% corporate tax, no residency requirements for foreign founders, and incorporation timelines as short as four to ten working days, Bulgaria has become a preferred jurisdiction for international entrepreneurs, freelancers scaling up, and EU holding structures. This guide explains exactly how to register a company in Bulgaria — what to choose, what to prepare, and what to expect at every step. Bulgarian company law (codified in the Commerce Act) recognises several types of legal entities, but most foreign founders choose between a single-shareholder limited liability company (EOOD) and a multi-shareholder version (OOD). The process is administered by the Bulgarian Trade Register and is entirely digital, which is why it can be completed remotely from anywhere in the world via a notarised power of attorney.
Bulgaria Company Formation in Numbers
Choosing the Right Legal Structure
The choice of legal form determines your liability, capital requirements, and ongoing compliance. Here are the structures most relevant to foreign founders — and if you'd rather skip the legwork, our Bulgarian company formation service handles the full incorporation remotely.
OOD & EOOD
The Bulgarian limited liability company — OOD (two or more owners) or EOOD (single owner). Limited liability, minimal capital, easy to manage, and the vehicle of choice for the vast majority of foreign founders.
AD — Joint-Stock Company
A joint-stock company suitable for larger operations with multiple investors or the intention to issue shares publicly. Higher capital requirement and more formal governance — including a board of directors.
ET — Sole Trader
A sole proprietorship with unlimited personal liability for business debts. We rarely recommend this for foreign founders. For freelancers, the free profession registration is usually simpler and more tax-efficient.
Branch of a Foreign Company
An extension of an existing foreign company rather than a separate legal entity. Has its own VAT registration, accounting, and reporting in Bulgaria — useful for established companies wanting local presence without creating a subsidiary.
For more than 90% of foreign founders, an EOOD (single-shareholder limited liability company) is the right structure. It combines limited liability, minimal capital, fast setup, and the lowest ongoing compliance burden of any Bulgarian commercial entity.
How to Register a Company in Bulgaria
The practical sequence of steps for incorporating a Bulgarian limited liability company (OOD or EOOD). The same process applies to AD companies, with a few additional formalities.
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i.
Choose Type & Name
Decide on EOOD (solo) or OOD (multi-owner) and select a company name. The name must be unique in Bulgaria — we run a Trade Register availability check before proceeding. Names can be registered in both Latin and Cyrillic.
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ii.
Prepare Constitutional Documents
The core document is the company statute (uchreditelen akt for EOOD, dogovor za druzhestvo for OOD), specifying share capital, business activities, management structure, and registered address. All in Bulgarian.
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iii.
Open Capital Deposit Account
The share capital — even just BGN 2 — must be deposited at a Bulgarian bank in a special capital account. The bank issues a deposit certificate required for the Trade Register filing.
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iv.
Notarise & Sign Documents
If you are abroad, sign documents via a notarised, apostilled power of attorney authorising a Bulgarian representative. This is typically the only step requiring action in your home country.
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v.
File with Trade Register
All documents are submitted electronically via the e-Trade Register portal. The state fee is BGN 110 (~€56) for e-filing. The Trade Register typically reviews and approves within 1–3 working days.
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vi.
Register for Tax & Social Security
Register with the National Revenue Agency (NRA) for corporate income tax. VAT registration becomes mandatory above BGN 100,000 (~€51,000) annual turnover, or for EU B2B transactions.
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vii.
Open Operational Bank Account
After incorporation, the capital deposit account is converted into a regular business account. The company can now invoice clients, receive payments, and operate fully.
4 to 10 working days from signed documents to a fully operational Bulgarian company. The exact duration depends mainly on bank onboarding times, which have become stricter under EU anti-money-laundering rules.
Required Documents
For a typical foreign-owned EOOD, you should expect to prepare or sign the following documents. We handle the Bulgarian-language drafting and translations on your behalf.
- Copy of passport(s) of all shareholders and managers
- Notarised power of attorney (apostilled, if signed abroad)
- Company statute / constitutional documents (in Bulgarian)
- Manager's appointment decision and specimen signature
- Capital deposit certificate from a Bulgarian bank
- Declaration of consent from each manager
- Declaration regarding the registered office address
- Application form A4 for the Trade Register
- Proof of state fee payment
For non-EU founders intending to apply for residence, additional documents may be required — particularly for a Bulgarian ID card.
Bulgarian Company Tax Overview
One of the main reasons foreign founders choose Bulgaria is the country's tax regime. Here are the headline figures that apply once your company is operational.
| Tax | Rate | Notes |
|---|---|---|
| Corporate income tax | 10% flat | Lowest in the European Union |
| Dividend withholding tax | 5% | Often reduced under double tax treaties |
| Personal income tax | 10% flat | Applies to salaries and director fees |
| VAT (standard rate) | 20% | 9% reduced rate for hotels and certain services |
| Social security (combined) | ~32.7% | Split between employer and employee |
"The combination of 10% corporate tax, 5% dividend withholding, and EU market access makes Bulgaria the most tax-efficient route into the European single market for most international entrepreneurs."
Ongoing Compliance Obligations
Incorporating the company is only the beginning. Every Bulgarian company has continuous obligations that must be met to remain in good standing with the authorities.
Monthly Accounting
Bulgarian companies are legally required to maintain accounting records under Bulgarian standards. Most foreign-owned companies engage a licensed Bulgarian accountant for monthly bookkeeping, VAT returns (if VAT-registered), payroll, and statutory reporting.
Annual Financial Statements
Every company must file annual financial statements with the National Statistical Institute and the Trade Register. The deadlines are 31 March (statistical reporting) and 30 September (Trade Register publication) of the year following the reporting period.
Corporate Income Tax Return
The annual corporate income tax return is due by 30 June of the following year, accompanied by payment of any tax owed or carrying forward of losses, subject to specific rules.
VAT Returns
VAT-registered companies file monthly VAT returns. The filing and payment deadline is the 14th of the following month.
Beneficial Ownership Disclosure
Under EU anti-money-laundering rules, the ultimate beneficial owners (UBOs) of Bulgarian companies must be declared in the public Beneficial Ownership Register, with updates whenever ownership changes.
Common Mistakes Foreign Founders Make
After years of supporting foreign founders, we see a few recurring mistakes that are easy to avoid with the right preparation.
- Underestimating bank onboarding times. Bulgarian banks have tightened compliance procedures — opening an account can take longer than the registration itself.
- Choosing the wrong structure. Many founders default to an OOD when an EOOD would be simpler, cheaper, and easier to manage.
- Skipping VAT analysis. Voluntary VAT registration can be a major advantage — or unnecessary complexity — depending on your client mix.
- DIY-ing translations. Trade Register filings require legally precise Bulgarian terminology. Generic translation tools introduce errors that lead to rejection.
- Ignoring the registered office requirement. A Bulgarian company must have a verifiable address with documented right of use. Casual virtual office arrangements can be challenged.
Do You Need a Local Agent?
Legally, you can register a Bulgarian company yourself if you speak Bulgarian and are physically present for notary appointments and bank visits. In practice, foreign founders almost always work with a local agent for three reasons: documents must be in Bulgarian, banks rarely open accounts for non-residents without local introduction, and the Trade Register communicates exclusively in Bulgarian.
An experienced agent typically handles the entire incorporation remotely on your behalf, via a notarised power of attorney. The full process — from first consultation to operational company — happens without you ever travelling to Bulgaria. If that is the route you'd prefer, register your Bulgarian company with our team or browse our full service catalog.
Frequently Asked Questions
How long does it take to register a company in Bulgaria?
Can I register a Bulgarian company without visiting Bulgaria?
What is the minimum share capital for a Bulgarian OOD or EOOD?
Do I need to be a Bulgarian resident to register a company in Bulgaria?
What is the corporate tax rate for Bulgarian companies?
Can a Bulgarian company invoice clients in other EU countries?
What happens if I want to close the company later?
Ready to Set Up Your Bulgarian Company?
Our multilingual team handles the full incorporation process — Trade Register, banking, tax registration, and ongoing accounting — so you can focus on running your business. See our company formation packages or get in touch for a free initial consultation with transparent fixed fees.
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