Company and Business Registration in Bulgaria

To do business in Bulgaria, foreigners most often choose EOOD — a limited liability company with a single owner. The minimum share capital after the country’s transition to the euro on 1 January 2026 is only about EUR 1, and the owner’s liability is limited to the contribution to the capital. There are no restrictions for foreign nationals when registering a legal entity in Bulgaria — EU citizenship is not required for this purpose.

International Law Firm "Zahist" advises clients who register a business in Bulgaria, including in connection with legalization through entrepreneurial activity. In our practice, most errors occur not at the stage of choosing the form, but at the stage of preparing documents for remote registration. A power of attorney executed without regard to the requirements of a particular notary or consulate forces the procedure to be repeated from the beginning.

We examine which legal forms of organization are available, how the registration itself proceeds, what taxes the company will face, and why one’s own business may become a ground for obtaining a residence permit.

Main legal forms of business in Bulgaria

Bulgarian legislation provides for several forms of doing business — from a sole trader to a joint-stock company. The choice of form depends primarily on the number of owners, the required level of protection of personal assets, and the scale of the planned activity.

Separately from the classic forms, since 2023 there has also been a variable capital company (DPK) — a company with variable capital, aimed primarily at start-ups, where the amount of capital can be changed without the complicated procedure typical of OOD or AD.

EOOD and OOD — the most popular choice for small and medium-sized business

EOOD (Ednolichno druzhestvo s ogranichena otgovornost) is suitable for a single owner, while OOD is for two or more partners; otherwise both forms operate under the same rules and are equally popular among foreigners.

Before the transition to the euro, the minimum capital was a symbolic BGN 2 — after 1 January 2026 this amount was converted at the fixed rate of BGN 1.95583 per euro, so the formal entry threshold remained virtually unchanged and accessible to anyone.

The main practical advantage of these forms is limited liability: the owner’s personal assets are, as a rule, protected from the company’s debts, unlike in the case of a sole trader. That is why consultants most often recommend EOOD or OOD to non-resident foreigners who plan to do business in Bulgaria on an ongoing basis.

Registration of an EOOD or OOD for a Bulgarian resident with ready documents takes about three working days in the Commercial Register. For remote registration through a trusted person, the process usually extends to 5–7 working days due to the need for legalization and translation of documents.

Sole trader (ET) — a simple form with unlimited liability

The ET form does not require share capital and is registered faster than companies, but the owner is liable for the business’s obligations with all personal assets — with no exception for a dwelling or savings.

In practice this form is chosen rarely precisely because of unlimited liability; it makes sense only for very small-scale activity with minimal financial risks, where the costs of setting up an EOOD appear unjustified.

A later transition from ET to EOOD or OOD is possible, but means the actual creation of a new legal entity rather than a simple conversion of form — therefore the prospects for business development should be weighed in advance, rather than focusing only on current savings.

Joint-stock company (AD) — for large projects

AD is suitable for large-scale projects involving capital raising through the issue of shares and requires at least BGN 50,000 (about EUR 25,500) of share capital — substantially more than for EOOD or OOD.

Management in an AD is more complex and more formalized: mandatory bodies include a board of directors or a supervisory and management board, depending on the chosen model, and reporting is subject to stricter control than in limited liability companies.

For most foreigners starting a business in Bulgaria from scratch, AD is an excessively complex form; it is chosen mainly for large investment projects or companies that plan a public offering of shares in the future.

Company registration procedure — step by step

1. Choose a company name and check its availability in the Commercial Register
2. Resolve the issue of a registered office address — all official correspondence of the company will be sent there
3. Prepare the constitutive documents — articles of association or a constitutive act, depending on the chosen form
4. Pay in the share capital to a temporary bank account opened specifically for this purpose
5. Sign the documents in person or through a notarized power of attorney for a representative in Bulgaria
6. Submit the set of documents to the Registry Agency through the one-stop-shop principle

For owners who are not permanently in Bulgaria documents are usually notarized in the country of stay and then translated and legalized in Bulgaria. Therefore, preparing the set of documents for remote registration takes longer than on-site registration.

A power of attorney for a representative in Bulgaria is the key document for remote registration: it is what makes it possible not to attend in person at every stage, including opening a bank account and signing constitutive documents.

After the company is entered in the Commercial Register it immediately receives a UIC — a unique identification code, which serves as a tax number and is used in all subsequent official relations, from the bank to the tax authority.

Taxes for business in Bulgaria

Corporate income tax is 10% — one of the lowest rates in the European Union, which makes Bulgaria a popular choice specifically for business registration, and not only for residence.

The standard VAT rate is 20%, with a reduced rate of 9% for certain categories of goods and services, including food products, certain medical services and books; exports of goods and services are exempt from VAT.

Mandatory VAT registration arises after exceeding an annual turnover of BGN 50,000 — companies with a smaller turnover may remain outside the VAT system, although they have the right to register voluntarily earlier.

In addition to corporate tax and VAT, the company pays social and health insurance contributions for employees. An owner-manager who receives a salary in their own company is subject to the same insurance contributions as an ordinary employee.

Business as a ground for a residence permit

One’s own company in Bulgaria opens a separate path to a temporary residence permit — provided that at least 10 jobs for Bulgarian citizens are created and maintained, or that more than 50% of the company’s capital is owned.

A residence permit on the basis of business is issued for 5 years, and after 5 years of continuous lawful residence on this ground one may apply for permanent residence — in the same way as under other grounds of the general legalization system.

In practice, the condition of 10 jobs is realistic rather for a medium-sized business with a real staff than for a sole trader without employees — for small companies the option of owning more than 50% of the capital is more often applicable. The exact list of documents confirming fulfilment of this condition should be clarified in advance, before filing the application for a residence permit.

This path of legalization should not be confused with the investment path — acquisition of real estate in an amount from BGN 600,000. Both options operate in parallel, and the choice between them depends on whether the applicant plans active entrepreneurial activity or passive ownership of an asset.

Legal assistance with business registration in Bulgaria

Choosing a form that matches the real business plans and preparing documents for remote registration at the first attempt is a task where a formal error in a power of attorney or translation means a repeated cycle of document legalization.

Lawyers of International Law Firm "Zahist" help choose the optimal legal form of organization, prepare constitutive documents and a power of attorney for registration through a representative in Bulgaria.

We also advise on whether a specific business model provides grounds for obtaining a residence permit, and we support the subsequent formalization of status based on entrepreneurial activity.

If you plan to register a company in Bulgaria and want to choose a form that matches your goals, contact International Law Firm "Zahist" — we will review your situation at a consultation.