Opening a Business Bank Account in Bulgaria: How to Prepare

Opening a Business Bank Account in Bulgaria: How to Prepare

If you ask founders what was the most stressful part of starting their company in Bulgaria, many will say the bank. Not the registration, not the taxes, the bank account. The reason is simple. The registration follows clear rules, but the bank makes its own decision, and from the outside it can look like a black box. In this article we explain how it works, what banks look at, and what you can do so your application goes smoothly.

Two accounts, not one

In the process of starting a company there are usually two different bank accounts, and people often mix them up.
The first one is a temporary account for the capital. Before the company is registered, the capital is paid into this account, and the bank gives a document that the money is there. This document goes with the registration application. This part is normally quick and simple.
The second one is the real business account, which you open after the company is registered and has its company number. This is the account for your daily business, for invoices, salaries and taxes. This article is mostly about this second account, because this is where the checks happen.

Why banks ask so many questions

Banks in Bulgaria, like in every EU country, must follow strict rules against money laundering. Before they open an account, they need to understand who owns the company, what it does, where the money comes from and where it goes. For a new company with a foreign owner and no history in Bulgaria, they have very little information, so they ask for more.
It helps to look at it from the bank's side. A new company, owned by someone who lives abroad, with no office here and no clients yet. The bank's question is basically: why is this company in Bulgaria, and is the business real? If your application answers this question clearly, most of the work is done.
Many banks also charge a fee for reviewing the application, and usually it is not returned if the answer is no. Another reason to prepare well the first time.

What to have ready

Every bank has its own list, but these are the things that are asked almost always:
Your passport, and the passports of all owners and managers.
The company documents. Most of these the bank can see in the Commercial Register, but sometimes they want copies.
A short description of the business. What you sell, to whom, in which countries, and roughly what turnover you expect in the first year.
Proof that the business is real. Contracts or invoices with clients, a website, a LinkedIn profile, offers you sent. For a new company this can also be documents from your previous work or your old company, to show you have done this before.
Where the money comes from. Where the capital and the first money for the company come from, for example savings, salary or the sale of a previous business.
Information about the main partners. Who are the expected clients and suppliers, and from which countries.
If one of the owners is a foreign company, the bank will also want its documents, usually with apostille and translation, and a simple chart of the full ownership up to the real people at the top.
From our experience the description of the business is the most important part, and also the part people do worst. One line like "consulting services" is not enough. Two or three clear paragraphs work much better than a long document full of general words.

Things that slow it down

Some situations are not a problem, but they mean more questions and more time:
Ownership through several companies in different countries.
Clients or suppliers in countries the bank considers high risk.
Business with crypto, gambling, payment services or similar activities.
A big difference between what you say you will do and what your documents show.
A business with no visible link to Bulgaria and no clear reason for being here.
None of this means you will get a no. It means the bank will want a better explanation, and it's better to give it from the start than to wait for the questions.

Do you need to come in person?

Often yes. Many banks want to meet the manager, and sometimes the owners, at least once. Some can do parts of the process remotely, but this changes from bank to bank and also depends on your case. If you plan a trip to Bulgaria anyway to sign the company documents, it makes sense to try to do the bank meeting on the same trip. We try to organize it like this for our clients, so they come once and not three times.

How long does it take?

For a simple company with a clear business and complete documents, it can be about one to two weeks. When the bank needs more information, it can be a month or more. In our experience the longest delays are almost never because of the bank's rules, they are because of documents that are missing and come back in small pieces.

What about online banks and fintech?

Some founders ask if they can use an online business account instead of a Bulgarian bank. In some cases this works well for daily payments, and many companies use both. But the online providers also do their own checks, they don't accept every Bulgarian company, and some clients, suppliers or authorities may still prefer a normal bank account in Bulgaria. Our advice is to see it as an addition, not as the plan for avoiding the Bulgarian bank.

In short

The bank account is the one step where nobody can give you a guarantee, because the bank decides by itself. What you can control is the file. Show clearly who you are, what the company does, where the money comes from and why the company is in Bulgaria. If you do this well, the account is usually opened without drama.
If you are still at the beginning, our overview of starting a company in Bulgaria shows where the bank fits in the whole process. And if you want help, write us. We prepare the application with you and coordinate with the bank, so your paperwork is not the reason things get slow.