How to register a company in Bulgaria

Why consider starting a business in Bulgaria?

Bulgaria is becoming an increasingly attractive destination for foreign investors and entrepreneurs. With its low 10% corporate tax rate (one of the lowest in the European Union), affordable operational costs, EU and Schengen memberships, Bulgaria offers a stable environment to start or expand a business. It’s also strategically located – in the heart of the Balkans, acting as a gateway between Western Europe, Eastern Europe, and the Middle East. In addition to the tax benefits, Bulgaria offers simplified company formation procedures and access to a skilled, multilingual workforce.

What types of companies can you register in Bulgaria?

Limited Liability Company (OOD/EOOD)

The most popular form of business entity in Bulgaria is the Limited Liability Company, known locally as an OOD (if there is more than one shareholder) or EOOD (if there is only one owner of the capital). It is suitable for most types of commercial activity and is the preferred choice for both Bulgarian and foreign nationals.

Joint-Stock Company (AD)

Another available option is the Joint-Stock Company (AD), which is suitable for larger operations that may eventually seek public funding or issue shares. However, the AD requires a much higher minimum capital and involves more complex reporting and governance procedures.

Variable capital company (DPK)

From 2025 there is a new legal form for doing business: a company with various capital. This is a perfect option for start-ups who want to be efficient, but also flexible when it comes to attracting investors and benefiting their employees under different conditions.

Sole proprietor (ET)

For individuals, a sole proprietor (ET) registration is also possible, but this form does not offer limited liability protection. This is why, if you want to keep it simple, you can always register as a freelancer, which gives you basically the same opportunities without some of the bureaucratic burden that a company offers.

Company registration process in Bulgaria

Step 1: company details

Before starting the company formation process, it is important to define the key characteristics of your future business, such as the legal form, company name, registered address, scope of activity, and amount of share capital. If you are uncertain or need guidance, our team will gladly assist you during the initial consultation to help you make the best decisions for your setup.

Step 2: Preparation of Incorporation

When establishing a company in Bulgaria, the required documents may vary slightly depending on the legal form, but the overall structure remains similar across types.

The key founding document is the Articles of Association (for OOD) or a Statute (for EOOD and AD), which defines the most important aspects of the company, such as: company name and registered address, scope of business activity, share capital and the way it is contributed, rights and obligations of the shareholders, rules for appointing and dismissing company managers, decision-making procedures.

The incorporation package typically includes also notarized specimen signature(s) of the appointed manager(s), serving as formal consent to hold the position and proof of payment of the share capital (for certain company types)

Step 3: Opening of a bank account

For most of the company types (EOOD/OOD and AD) before registration, you must open a temporary capital account with a Bulgarian bank and deposit the minimum required capital. The bank issues a certificate confirming the deposit.

This process may be the most stressful of everything, but don’t worry – we’ve got you. We are working with trusted banks and fintech solutions and have working options for almost every client, depending on their nationality and residential status.

Step 4: Registration with the Commercial Register

All prepared documents must be submitted to the Bulgarian Commercial Register. The process can be completed online within 5 working days. Once approved, your company receives a Unified Identification Code (UIC), which serves as the company’s unique ID number and confirms its legal existence. This is the point when the initial company formation is done and you can start doing business through your newly registered entity – sign contracts, issue and receive invoices, etc.

Step 5: VAT Registration (If Required)

If your company expects to have an annual (not calendar year, but a 12-month period) turnover above EUR 50 000, or if it will engage in cross-border EU trade, VAT registration is required. Even if not required by law, many companies voluntarily register for VAT to ensure smooth operation in the EU market.

How long does it take to register a company?

The timeframe for establishing a company in Bulgaria, from the preparation of documents to actual registration in the Commercial Register, depends on several factors, including the chosen legal form, the company’s structure (i.e. whether it is founded by individuals or includes legal entities), and whether the shareholder(s) or sole owner are Bulgarian citizens, EU or non-EU nationals.

While the document preparation and registration process can usually be completed within one working week, the most time-consuming step is often the opening of a bank account for depositing the company’s capital. This is due to mandatory client checks (KYC) conducted by Bulgarian banks, which may take anywhere from a few days to several weeks depending on the case.

Thanks to our experience and practical know-how, you could be sure that we will streamline this step and ensure your company is formed efficiently and without delays.

Can foreigners register a company in Bulgaria?

Yes, absolutely. Bulgaria does not require shareholders or directors to be Bulgarian citizens or residents. Foreign individuals and legal entities can fully own and manage a Bulgarian company.

As there is no matter of the owner’s and manager’s citizenships for the company registration, often opening the bank account of the company can be an issue, because of the bank KYCs. As mentioned above, we have working solutions for almost each client as we are making initial free checks before starting the procedure.

Advantages of setting up a company in Bulgaria

Flat 10% corporate tax for Bulgarian companies

There is no progressive taxation in Bulgaria and you can rely on the predictability of your expenses, which will arise in the form of taxes.

EU VAT and access to the EU market

You will apply 0% VAT on your selling invoices to all of your EU corporate clients.

Quick and affordable incorporation process

In addition to the simplified steps described above, the process of company incorporation can be completed remotely in most cases.

5 % dividend tax

Once the financial year is closed on a profit, you can distribute dividends with only 5% tax if you are a Bulgarian tax resident.

Good opportunities to outsource services in Bulgaria

You can read more in our article on the matter.

Need help?

If you’re looking for a trusted partner to guide you through the registration process, our team at Switch2BG offers:

End-to-end company formation services
Legal advisory and document preparation
Virtual office
Tax and accounting support