Register a company in Bulgaria

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Table of contents:

1. Five-step process: Starting a company in Bulgaria
2. TOP 3 Advantages of Starting a Company in Bulgaria
3. TOP 3 Disadvantages of starting a company in Bulgaria

1. Register a company Bulgaria in 5 steps

20 March 2025 11641 10

Step 1: Choose a company type

Before starting a business, the first question to be asked is: What types of companies are there? And what are the economic and tax implications of each?

Residence in your home country or in Bulgaria - which type of company should you choose?

Private companies such as general partnerships, limited partnerships or sole proprietorships require a residence in Bulgaria and trigger a social security tax in addition to the corporate tax - an added cost that is far from negligible!

For founders with residence outside Bulgaria only a LLC (Bulgarian OOD / EOOD) or Incorporation (Bulgarian AD) comes into question.

The LLC is called OOD or EOOD in Bulgaria. This Bulgarian version of the Limited Liability Company has a clear and adaptable organizational structure. It is also suitable for small and medium-sized companies that prefer limited liability and a straightforward organizational structure.

The OOD requires a written partnership agreement that does not require a notarial certificate. In comparison to the establishment of a Limited Liability Company, the share capital of EUR 1 is almost irrelevant. There are certain special situations of the OOD for which special regulations apply. Particularly worth mentioning is the one-person limited liability company (EOOD). The EOOD can be founded by just one person (one-man LLC) and is therefore supplemented with the letter E.

Step 2: Why Bulgaria

With just 10% income and corporate tax, Bulgaria has the lowest tax rate in Europe, along with Romania. This makes setting up a company in Bulgaria the tax haven in the EU.

10% income or corporate tax

no trade tax

only 5% tax on profit distributions (withholding tax)

Low labor costs: Compared to most Western European countries, Bulgaria is convincing due to its low labor costs. Bulgaria is an ideal alternative location for your company if you are looking for highly qualified personnel but lack the budget for workers from more expensive countries. This is especially true for the production and IT sectors.

Stable tax policy: A stable and consistent tax policy: Bulgaria has a solid tax policy. This helps to provide confidence to companies planning long-term investments and depending on a predictable tax environment.

Low cost of living: If you are not only thinking about running your company in Bulgaria but also want to live in the country, you will benefit from low living costs.

Step 3: Requirements for founding a business

In order to establish a corporation in the form of an OOD, the following questions arise: Is it possible to establish a company without having to travel? What documents must be submitted?
The OOD/EOOD must be notarized - do I have to go to a notary in my home country or even in BG?

Starting a business remotely, without having to travel at all, is often not entirely possible! - But with GO EU it is definitely possible!

Many providers promise to set up a company without any local notary appointment. In reality, a notary appointment in the country of residence is often necessary. The notarized documents then have to be provided with an apostille, which is a laborious process.

Upon opening a bank account or authorizing the tax advisor, a physical notary appointment on site is required, contrary to what was previously promised!

--> Exclusively at GO EU - Company formation, account opening and tax advisor authorization 100% remote and without physical notary appointment possible!

Update 2025: 10 Minutes initial consultation 100% free

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Company Formation Process

1. The share capital must be at least 2 leva (1 euro).
2. Payment of the Share Capital
3. Articles of association authorised by a lawyer / notary
4. Checking and applying for the Company Name
5. Preparation of the formation documents
6. Registration in the Bulgarian Commercial Register
7. Notarial certification

Required information:

1. Determine the amount of share capital
2. Specify the company's object and business purposes
3. Allocate shareholder shares
4. Establish the company's registered office
5. Define the Rights and Obligations of the Shareholders

Step 4: Costs / Prices

The prices for setting up a company depend on a number of factors. Are there additional costs for travelling to Bulgaria for company registration or opening a bank account? In the best case scenario, no travel is necessary at all and all services can be carried out 100% remotely. The costs for setting up a company are around EUR 1,000 - 1,500.

Establishment & account only with GO EU 100% remote! - But what additional costs are there?

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Additional costs: Company address (including mail forwarding), application for VAT ID, bank account opening, and expenses for monthly accounting and annual financial statements.

Attention: Tax consultant fees are often expensive as in Eastern European countries such as Bulgaria a lot of accounting is still done manually.
Accounting costs average from 250 EUR per month plus annual financial statements.

Attention: Even poorly trained lawyers or large tax firms—where reaching someone in urgent situations is often difficult—charge these prices.

--> Exclusively at GO EU - Access to our own tax advisors and English-speaking employees included at a fixed price! (Costs well under 250 EUR per month)

Step 5: Choosing the right company formation agency

Self-employed people and entrepreneurs benefit from the advantages of setting up a company in Bulgaria, including a low corporate tax rate of just 10%, low wages and a stable tax policy. The economic opportunities and the geographical proximity to the European market, despite bureaucratic obstacles, language barriers and cultural differences, make Bulgaria an extremely attractive location with the help of the right local partner.

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2. TOP 3 Advantages: Starting a company in Bulgaria

At first glance, Bulgaria sounds like an emigration paradise and tax haven. The lowest cost of living in the EU, low taxes and proximity to the sea.

But be careful, there are some disadvantages that can become obstacles when emigrating and often when starting a business.. We will explain!

The advantages of Bulgaria at a glance:

Member of the EU since 2007, but still the least developed country in Europe

Administrative bodies are slow and inefficient, but are improving yearly

Flat Tax 10%, corporate tax or income tax always only 10%

Cost of living is one of the lowest in Europe

Wage costs and additional labor costs are in the lower range

Profit distributions to your own private account only 5% dividend tax

3. TOP 3 Disadvantages of starting a company in Bulgaria:

1. Flat Tax 10% - expenses are mostly not deductible

In Bulgaria, a general tax rate of 10% applies. It does not matter whether you are establishing a company such as a Bulgarian Limited Liability Company or a natural person such as a freelancer. Only 10% tax is always paid on profits. That sounds fair and tempting. Of course, the aim should be to offset or deduct as much as possible in order to reduce profits and, conversely, pay less tax. Unfortunately, there is a big catch: ordinary expenses such as office rent, salaries, office ancillary costs, internet, etc. can be deducted from taxes.

However, essential expenses such as advertising costs, company vehicles, consulting expenses, as well as the majority of expenses incurred outside Bulgaria, cannot be deducted from taxes. They therefore do not reduce profits.

Since only expenses related to maintaining a physical office can generally be deducted, a company in Bulgaria is rather unsuitable for digital nomads, frequent travelers or commuters.

Even more serious is the registration in Bulgaria as a self-employed person. In this case, when setting up a sole proprietorship, i.e. not a company, no costs can be deducted - i.e. the 10% is like a tax on sales. If you earn 200,000 EUR, you pay 20,000 EUR in taxes (10%).

2. Bank account Bulgaria

The days are long gone when Western Europeans could cross the border into Bulgaria and simply open bank accounts there – especially without a physical residential address or primary residence in the country.

There are currently a number of company formation agencies that support founders or expats in setting up a company in Bulgaria - however, there is no indication anywhere that opening a bank account with a Bulgarian bank is difficult. This is similar to Cyprus. Even direct banks such as Transferwise or Revolut have denied Cyprus access, i.e. a bank account for the country of Cyprus can no longer be opened with these providers. The situation is similar for Bulgaria with its national banks, as well as with an increasing number of direct banks.

3. Rule of law, Language and Writing

However, the rule of law and transparency are still the biggest problem areas in Bulgaria. The European Union has therefore repeatedly warned Bulgaria about inadequate anti-corruption measures. The EU Commission is therefore demanding clear control mechanisms from the Bulgarian government, otherwise further funds from the EU could be blocked. It’s the same old narrative, but still as relevant as ever. One must not forget: Bulgaria is the poorest country in the EU, and it is struggling with the biggest social problems.

Bulgaria is completely different from other countries in terms of language and writing. The Bulgarian language does not use the Latin alphabet, but the Cyrillic alphabet. Additionally, there are many regional dialects. Learning the language is extremely difficult, especially since the Bulgarians' knowledge of English leaves much to be desired. In the capital Sofia, you can communicate reasonably well.

Update 2025: 10 Minutes initial consultation, 100% free.

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(NEW: Company formation including opening a bank account 100% remote)

tags:

Starting a company in Bulgaria, OOD EOOD Bulgaria, Advantages Bulgaria, Disadvantages Bulgaria

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