How to open a company in Bulgaria

Opening a company in Bulgaria is one of the most convenient ways to conduct business in the European Union, manage investments, and legally acquire real estate. The process is relatively simple, and the country’s legislation ensures transparency and protection of property rights.

Benefits of registering a company

Bulgaria attracts entrepreneurs thanks to a combination of affordable taxes, a stable banking system, and lenient regulations.
Key benefits:

• low income tax rate – 10%;
• the ability to manage the company remotely through an authorized representative;
• opening a bank account and making international payments in euros;
• participation in European tenders and funding programs;
• simple accounting and tax system.

Basic forms of companies

The most common legal forms are:

1. EOOD (Ednolichno druzhestvo s ogranichena otgovornost) is an analogue of a private LLC with one owner.
2. OOD (Friendship with limited liability) is a company with several partners.
3. ET (Ednolichen turgovets) — individual entrepreneur.
4. AD (Aktsionerno druzhestvo) is a joint-stock company, suitable for large projects.

For investment and development projects, the EOOD/OOD form is most often used, as it is easy to manage and suitable for both private and corporate investments.

Stages of company registration

1. Choosing a name and checking for uniqueness.
   The company name is reserved in the Bulgarian Trade Register.
2. Preparation of constituent documents.
   The main document is the Founding Act (for EOOD) or the Founding Agreement (for OOD).
3. Opening a temporary bank account and contributing the authorized capital.
   The minimum capital is 2 leva (approximately 1 euro), but more is often contributed to demonstrate financial solvency.
4. Notarized signature of the owner and director.
   The procedure takes no more than 1 day.
5. Registration in the Trade Register.
   Submission of documents is done electronically. Registration is usually completed within 3-5 business days.
6. Opening a permanent bank account and connecting the accounting department.
   After registration, the company receives a UIC (analogous to an identification code).

Taxes and accounting

Tax rates in Bulgaria remain among the lowest in Europe:

• Income tax – 10%;
• Dividends – 5%;
• VAT – 20% (if the turnover exceeds BGN 100,000, the company is required to register for VAT).

Financial statements are submitted monthly, and the annual balance sheet is submitted annually. For small companies, accounting costs typically range from 100 to 200 leva per month.

Features of corporate governance

The company’s director may be a resident of any country. Management can be carried out remotely through a power of attorney, notarized and translated into Bulgarian.
The company must have a legal address in Bulgaria, which can be established through an office or a partner firm.

Registration terms and costs

• Preparation of documents: 1–2 days.
• Notarial acts and account opening: 1 day.
• Registration in the register: up to 5 working days.
• Total registration costs range from 350 to 600 euros, including government fees and notary services.

After registration

Once the company is registered, it is recommended to:

• connect online banking;
• order an electronic signature (E-signature) for reporting;
• conclude an agreement with an accountant;
• arrange a seal and company documents (optional).

How we can help

Our company supports clients at every stage—from choosing a business structure to opening an account and providing accounting services.
We prepare all the documents and coordinate with the notary and bank to ensure registration is quick and bureaucratic.