Starting business in Bulgaria

Updated information for 2024/2025 on company formation in Bulgaria can be found here: https://aidosbg.com/set-up-llc-bulgaria/


Starting business in Bulgaria

Starting business in Bulgaria is becoming more and more popular. Many people and companies from all over the world are coming to Bulgaria to enjoy the pleasant business environment. Advantages are for example; Bulgarian is a member of the European union since 2007. Compared with other European countries it has a low salary level, an overview of the average salaries per sector you find here on the website of the National statistic Institute. But besides that the level of education is high.

Bulgaria is a fast developing country in the Balkans with many opportunities for investors, entrepreneurs and startups. Earlier this year Bulgaria was awarded Offshoring Destination of the Year at the European Outsourcing Association Awards 2015. Recently forbes has announced Sofia as one of the top 10 cities to launch your startup. Not only the pleasant business environment has it advantages also the favorable 10% flat tax rate gets many interested in starting business in Bulgaria

The most common form for starting business in Bulgaria is the Limited Liability Company (Ltd.). In Bulgaria there are two forms of Ltd.;

  • Single owner Ltd. (EOOD)
  • Multiple owner Ltd. (OOD)

The company can be owned by natural persons or, one or more companies. the minimum capital to be deposited is currently 1 Euro. The initial registration takes about a week. The application for a VAT number, when required, takes two weeks.

“Newly registered companies do not automatically enter the VAT system; your company has neither obligations nor rights concerning VAT in Bulgaria.
Registering for VAT becomes compulsory when; your company has more than 50’000 BGN turnover over the last 12 months or your company has business outside of Bulgaria. You send invoices to countries other than Bulgaria. You can voluntarily register your company for VAT at any time and at any turnover.”

The director(s) of the new company have to be physically present to open a bank account and deposit the capital. And sign the incorporation documents and a power of attorney in front of a notary. This will take no more than half a day. All procedures can be done from distance, in which case certified translations and apostille are required.

What we do for you starting business in Bulgaria;

  • Preparing all necessary documentation in Bulgarian and English.
  • Organize and join you to the meetings at the bank and notary.
  • File the documents at the Registry Agency.
  • Order a company stamp.
  • Collect the company documents when ready.
  • Open your current bank account(s).
  • Apply for VAT registration.

For more information on other company forms like a joint stock company or a holding company please contact us.

Our price for setting up your company is 950 Euro. This is includes all the above mentioned steps and all state and notary fees involved. We will deliver your company “ready to go”.

When you are interested in starting a company in Bulgaria please fill in our online questionnaire and one of our colleagues will contact you within 24 hours to guide you through the process.

 

Comments

  • Dear Sir.
    I would like to incorporate a company and it should be a limited liability company. The company will have 2 shareholders and one director and opening of a bank account for the company and for 2 individual.
    Please read the following statement and tell me if it is still true and current:
    Limited liability company (OOD)
    A limited liability company (OOD) is a commercial company established by one or more natural or legal persons who are liable for the company’s obligations up to the amount of their contributions to the company’s registered capital. An OOD must have at least one director and one shareholder and there are no restrictions with regard to their nationality. The minimum registered capital is EUR 1, which must be divided into shares with a registered value of no less than EUR 0.50. An OOD which exceeds at least two of the following three criteria is obliged to have its financial statements audited:
     Fixed assets – EUR 750,000;
     Annual turnover – EUR 1,250,000;
     Average workforce employees – 50 employees
    So if our fixed assets are EUR 750,000 or less and my work force is under 50 employees then we will not need to file an audited annual return?
    How long will it take your company to register a company for us and opening of the company’s account? Also, we need a resident visa so that we can be in Sofia operating our company.
    We are in the financial and investment business. However, this company will also later get involve in clean energy R&D and may even be a manufacturing plant to manufacture our invention.
    Of course, when we reached that stage, the fix assets will surpass EUR750, 000 and auditing will be necessary.
    I have several more questions but I will wait till the next email.
    For now we need to know the time and cost to do the following:
    – Incorporate a new company?
    – Opening of the company’s account in USD, EUR and local currency?
    – Applying for our resident visa?
    – Opening of 2 personal accounts both in USD and local currency?

    Thank you.
    Tony

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