The limited liability company (LLC) is the most common business structure for foreign entrepreneurs in Bulgaria. Under Bulgarian law, it is known as OOD when there are multiple owners, or EOOD when there is a single owner.
This structure offers limited liability protection and a relatively straightforward company formation process. This guide explains how to set up an LLC in Bulgaria in practice, including key requirements, registration steps, and important considerations for foreign founders.
Quick answer
A limited liability company (OOD or EOOD) is the most common company form for foreign entrepreneurs in Bulgaria. It requires a minimum capital of EUR 1 (BGN 1.96), registration with the Bulgarian Commercial Register, and appointment of at least one director. The process typically takes 2–3 weeks and involves coordination with banks, notaries, and accountants.
Important note
Foreign founders may face challenges opening escrow accounts for initial company capital deposits in Bulgaria. In practice, having Bulgarian tax residency or a valid long-term Bulgarian residence permit may improve success rates with local banks.
Key features of an LLC in Bulgaria
- Limited liability
Owners are not personally liable for company debts beyond their capital contribution. - Flexible ownership
An LLC can be owned by one person (EOOD) or by multiple individuals or legal entities (OOD). - Minimum capital
The statutory minimum capital requirement is EUR 1 (BGN 1.96). In practice, higher capital amounts are often used for credibility with banks and business partners. - Management
The company is managed by one or more directors appointed by the owner(s).
Steps to registering an LLC in Bulgaria
Phase 1: Company registration
Information gathering
To register an LLC in Bulgaria, the following information is required:
- Company name
- Owner(s) details (full name, date of birth, identification documents)
- Director(s) details
- Description of business activity
- Capital amount
- Share distribution (for OODs)
- Registered business address in Bulgaria
Document preparation
Incorporation documents are prepared in Bulgarian and must comply with the Bulgarian Commercial Act.
Notary and bank procedures
- Incorporation documents and powers of attorney are notarised
- An escrow account is opened with a Bulgarian bank
- Initial capital is deposited
Commercial Register filing
The documents are filed with the Bulgarian Commercial Register. Registration usually takes 2–5 business days once submitted.
For details on what company information becomes publicly available and how Ultimate Beneficial Owner (UBO) and Know Your Customer (KYC) rules apply, see:
- Company Information in Bulgaria: What Is Public, What Is Not
- Ultimate Beneficial Owner (UBO) Bulgaria: Key Rules
- KYC in Bulgaria: What Companies Need to Know
Phase 2: Post-registration setup
- Accounting services
A local accountant must be appointed to handle bookkeeping, tax filings, and statutory reporting for the company. See: Bookkeeping in Bulgaria: An Essential Guide for Business Owners - Power of attorney
Powers of attorney may be issued to authorise representatives to handle ongoing administrative and banking matters. - Bank account transition
The escrow account is converted into a regular business current account, and online banking access is set up.
Phase 3: VAT registration (optional)
- VAT assessment
VAT registration may be mandatory or optional depending on business activity, turnover, and cross-border operations. See: VAT in Bulgaria - VAT registration filing
If required, the VAT registration application is filed after the company is officially registered. Obtaining a VAT number typically takes around two weeks.
Additional considerations
- Timeframe
The full process can usually be completed in around three weeks, depending largely on banking procedures. - Physical presence
Physical presence in Bulgaria is not legally required for all steps, but is often necessary in practice for banking, notarial procedures, and—where applicable—immigration-related matters. - Remote company registration – legal theory vs. practical reality
From a legal perspective, parts of the company registration process can be handled remotely using powers of attorney, notarised documents, and apostilles.
In practice, however, fully remote company registration increasingly conflicts with modern KYC and AML requirements in Bulgaria. Bulgarian banks generally require directors or beneficial owners to attend account opening procedures in person, and notarial and immigration-related steps often also require physical presence.
For this reason, while preparation can be done remotely, company registration in Bulgaria is best approached as a coordinated process that typically involves at least one personal visit. - Euro adoption and statutory capital
Following Bulgaria’s adoption of the euro, companies may need to review whether their registered share capital continues to meet statutory requirements. Further details are explained in our guide on company capital compliance after euro adoption. - Ongoing obligations
After registration, companies must comply with ongoing accounting, tax, and regulatory requirements in Bulgaria.
In many small and newly established companies, the owner also acts as the managing director. In such cases, the director’s role and remuneration must be structured correctly under Bulgarian law. A detailed explanation of the available options, including Management and Control Contracts (DUK), social security obligations, and tax treatment, can be found in our guide on Managing Director Remuneration in Bulgaria.
For a broader practical perspective on the business environment, see our article Doing Business in Bulgaria: A Practical Perspective.
Considering registration?
If you are evaluating company formation in Bulgaria and want clarity on structure, timing, and practical setup, see our Company Registration in Bulgaria page.
It outlines how we approach registration in practice, including fees, timelines, and alignment before incorporation.
Disclaimer
This article provides general information on setting up a limited liability company in Bulgaria and does not constitute legal or tax advice. Company formation requirements may vary depending on individual circumstances.
Frequently asked questions
What is the difference between an OOD and an EOOD?
An EOOD has a single owner, while an OOD has two or more owners. Both are limited liability companies governed by the same legal framework.
What is the minimum capital requirement?
The statutory minimum capital is EUR 1 (BGN 1.96).
Is physical presence required to register an LLC?
While preparation can be handled remotely, physical presence is often required in practice for banking and notarial procedures.
Can a foreigner open a Bulgarian bank account remotely?
Remote account opening is often difficult. Many banks require physical presence and enhanced KYC checks.
How long does the registration process take?
Typically 2–3 weeks, depending mainly on bank processing times.
What are the ongoing costs of running an LLC?
Ongoing costs include accounting services, corporate income tax, VAT (if applicable), and annual administrative fees. For a practical overview of how accounting fees are structured in Bulgaria, see Accounting Fees in Bulgaria: What Businesses Should Expect.
Last reviewed and updated: February 2026
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