Starting a Company in Bulgaria: An Overview

Starting a Company in Bulgaria: An Overview

Every week we get messages from people who heard that Bulgaria has 10% corporate tax and want to know if it is really that simple. The short answer is yes, registering a company here is not complicated. But there are some steps you need to do in the right order, and some things that are good to know before you start. In this article we explain how the process looks for a foreign founder, from the first idea until the company is working.

Why people choose Bulgaria

The main reason is tax. Corporate income tax is a flat 10%, which is the lowest in the EU. When you take out profit as dividend, there is 5% dividend tax on top. So in total you pay around 15% on profit you take out from the company. For many of our clients who come from Germany, Austria or the Netherlands this is a big difference.
There are also other good points. Bulgaria is in the EU, and since 1 January 2026 the country uses the euro, so the company capital, the bank accounts and the reporting are all in euro now, but you can open bank accounts in other currencies too. Costs for accounting and office are generally lower than in Western Europe. And you don't need to be a resident or a Bulgarian citizen to own or manage a company here.
One thing we always say honestly: the low tax in Bulgaria doesn't automatically mean you pay less tax at the end. It depends where you live and where the business is really managed from. If you stay living in another country, that country may still want its part. This is something to check with a tax advisor before you start, not after.

Step 1: Choose the type of company

Most foreign founders register an EOOD or an OOD. Both are limited liability companies, like a GmbH or LTD. The difference is simple:
EOOD has one owner.
OOD has two or more owners.
The minimum capital for both is only 1 euro. Most people put a bit more, but there is no need to put thousands like in some other countries. There is also the AD (joint stock company), but it needs €25,000 capital and it's usually not needed for small and medium businesses.
We have a separate article about choosing between EOOD and OOD, because when you have partners there are some important questions about decisions and shares that you should think about before you file.

Step 2: Prepare the company details

Before any documents can be prepared, you need to decide a few basic things:
The company name. It has to be free in the Commercial Register, so we check this first.
The registered address in Bulgaria. Every company needs one, and all official letters go there. If you don't have an office here, you can use our address service.
The manager. This can be you, also if you live abroad.
The business activity. You can write it quite broad, it doesn't need to be very exact.
The capital and how it is split between owners, if there is more than one.
You will also need to say who is the real owner of the company (the beneficial owner). This is a normal EU rule, nothing special for Bulgaria.

Step 3: Documents and signatures

This is the part where most delays happen, not because it's difficult but because of the paperwork. The founding documents need signatures that are certified by a notary. If you are in Bulgaria, this takes maybe 20 minutes at a notary office. If you sign abroad, the documents usually need an apostille and then a translation to Bulgarian, which takes more time.
Many of our clients prefer to come to Sofia for one or two days and do all signatures at once. Others give a power of attorney so we can do most of the steps for them. Both ways work, it's just a question of what is easier for you.
You will need your passport, and if one of the owners is a company and not a person, then also documents for that company, like a recent extract from its register.

Step 4: Pay the capital and file the registration

The capital is paid into a special bank account before the registration. The bank gives a document that the money is paid, and this document goes together with the application to the Commercial Register.
After the application is filed, the Registry Agency is usually fast. When everything is correct, the company is registered in a few business days and gets its company number (called EIK or UIC). From our experience the whole process takes around 3 to 5 business days once the documents are ready. Most of the time the waiting is not on the state side, it's on collecting signatures and papers.

Step 5: Open the business bank account

After the company is registered, you need a normal business bank account. Here we want to be realistic. Banks in Bulgaria do their own checks on every new client, and they decide by themselves. They will ask about your business, where the money comes from, who your clients are, and sometimes they ask for a meeting in person. They also charge a fee for this review.
What helps a lot is to come with a clear and complete file from the start. When a bank has to ask again and again for documents, the process becomes slow. Good preparation can't guarantee the account, nobody can promise that, but it makes the difference between one week and one month.

Step 6: VAT, if you need it

Not every company needs to register for VAT right away. In 2026 the registration becomes mandatory when your taxable turnover reaches €51,130 in a calendar year. But there are cases when you need a VAT number earlier, for example if you buy services from other EU countries or sell to EU businesses. This depends a lot on what exactly your company does, so it is better to look at it together with your accountant and not just guess. We have given more information about this in our article on VAT registration.

Step 7: After the registration

A lot of people think the job is done when the company is registered. Actually this is the moment when the regular work starts. Every Bulgarian company needs an accountant, also if there is no activity yet. There are monthly reports if you have employees or if you are VAT registered, an annual tax return, and annual financial statements that are published in the Commercial Register.
If you pay yourself a salary as a manager, there are social contributions and payroll to handle. If you take dividends, the 5% tax is held back by the company when it pays you.
None of this is complicated, but deadlines are strict and penalties for late filing are something you want to avoid. A good accountant who speaks your language and answers your emails saves a lot of stress.

What about living in Bulgaria?

Some founders only want the company and keep living where they are. Others want to move here too. If you are an EU citizen, moving is quite easy, you just register your stay. If you are from outside the EU, there are residence permit options for people who run their own business here, but the rules are different and the process takes longer. This is a separate topic, and we are happy to explain it in a call.

In short

Starting a company in Bulgaria is cheaper and faster than in most EU countries. The steps are clear: choose the structure, prepare the details, sign the documents, pay in the capital, register, open the bank account, and then keep the accounting in order. Where people lose time is usually the paperwork and the bank, not the state.
We have been helping foreign founders with this for the last two years, and we take care of the whole route, from the first questions until the company is running and the accounting is in place. If you are thinking about it, write us and tell us a bit about your business. We will tell you honestly what makes sense in your case.