Company Formation in Bulgaria

OVERVIEW

Incorporation in Bulgaria

Bulgaria offers the most competitive combined tax environment in the European Union — a flat 10% corporate income tax and a 5% dividend withholding tax, both the lowest rates across all EU member states. As an EU member since 2007, a Bulgarian company provides full access to the EU Single Market, the free movement of goods and services, and a stable, internationally recognised legal framework. The country has a fast-growing technology, manufacturing, outsourcing, and renewable energy sector, with Sofia developing as a regional business and startup hub.

Why Bulgaria?

10% Flat Corporate Income Tax
5% Dividend Withholding Tax
Full EU Single Market Access
€1 Minimum Share Capital
Fully Remote Formation
Express Formation

Requirements

General Requirements for Bulgaria Company Formation

Company Name

Must be unique and registered in the Bulgarian Commercial Register. Names are officially registered in the Cyrillic alphabet; Latin versions are accepted for international business use. CORPEASE conducts a name availability check prior to filing.

Entity Type

EOOD (sole founder), OOD (multiple shareholders), AD, or Branch/Representative Office

Registered Office Address

A physical Bulgarian business address is mandatory for all registered companies. CORPEASE provides a registered office address service in Bulgaria.

Minimum Share Capital

BGN 2 (~€1) for EOOD and OOD — fully paid up at registration. BGN 50,000 (~€25,565) for AD — at least 25% paid up at registration. Capital must be deposited into a Bulgarian bank account and confirmed with a bank capital contribution certificate.

Bulgarian Bank Account

A Bulgarian bank account must be opened to deposit the share capital and receive the capital contribution certificate required for registration. Most Bulgarian banks require the director’s physical presence.

Minimum Shareholders

1 shareholder for EOOD. Minimum 2 shareholders for OOD. Minimum 1 shareholder for AD.

Minimum Directors

1 director for EOOD and OOD. No Bulgarian residency or citizenship required.

Foreign Ownership

100% foreign ownership is permitted. No local Bulgarian partner, shareholder, or director is required.

Owner Identification

1. Certified Copy of a Passport 2. Certified Copy of a Utility Bill (e.g., Gas / Electricity) or Bank Statement (dated within the last 3 months)

Articles of Association / Founding Act

For OOD: Articles of Association. For EOOD: Founding Act. Drafted by CORPEASE and filed with the Commercial Register.

Document Requirement

Remote formation is completed via an apostilled Power of Attorney. Director specimen signatures must be notarized.

Tax Registration

Upon Commercial Register approval, the company receives its UIC (Unique Identification Code) and registers with the National Revenue Agency (NRA) for corporate income tax. VAT registration is separate and mandatory once annual turnover exceeds BGN 100,000 (~€51,000), updated as of April 1, 2025.

COMPANY TYPES

Which Company Types We Serve

EOOD — Single-Member Limited Liability Company

The most popular entity type for foreign entrepreneurs and sole investors. The EOOD is a single-shareholder limited liability company offering full personal asset protection and 100% foreign ownership. Minimum share capital of BGN 2 (~€1) is required.

Best for:

Solo foreign entrepreneurs and individual investors
Startups, consulting, technology, and e-commerce businesses
Companies seeking the simplest, lowest-cost EU entity structure
Businesses that do not plan to raise public capital

OOD — Multi-Member Limited Liability Company

The multi-shareholder version of the EOOD, suitable for partnerships and businesses with two or more shareholders. Offers the same limited liability protection and low capital requirement (BGN 2, ~€1). Management is carried out by a general meeting of shareholders and an appointed director.

Best for:

Joint ventures and businesses with two or more shareholders
Partnerships between foreign investors entering the Bulgarian market
SMEs and growing businesses requiring a multi-owner structure

AD — Joint Stock Company

The Bulgarian equivalent of a public limited company. Requires a minimum share capital of BGN 50,000 (~€25,565), of which at least 25% must be paid up at registration. Suitable for large corporations or companies planning to list on the Bulgarian Stock Exchange.

Best for:

Large corporations requiring a formal share capital structure
Companies planning to raise investment through public share issuance
Businesses intending to list on the Bulgarian Stock Exchange

Branch / Representative Office

An extension of a foreign parent company. A Branch (Клон) can conduct commercial activity; a Representative Office (Представителство) cannot generate revenue and is used for market research or promotion only.

Best for:

Foreign companies testing the Bulgarian market before full incorporation
Short-term or non-commercial operational presence in Bulgaria

Comparison

EOOD vs OOD vs AD —
Which Structure Is Right for You?

EOOD

OOD

Branch

Best for

Solo investors

Multiple shareholders

Large corps

Foreign extension

Min. share capital

BGN 2 (~€1)

BGN 50,000 (~€25,565)

None

Paid-up at registration

BGN 2 (100%)

25% of total capital

N/A

Min. shareholders

N/A (parent only)

Min. directors

1 (no residency required)

Board of Directors

1 representative

Foreign ownership

100% permitted

Parent company

Corporate tax

10% flat

Dividend tax

N/A

Formation time

1–3 weeks

3–6 weeks

2–3 weeks

Recommended for foreign clients

First choice (solo)

First choice (partners)

If raising investment

Market testing

Our Recommendation

For the vast majority of foreign entrepreneurs, the EOOD (single founder) or OOD (multiple founders) is the most practical, cost-effective, and tax-efficient starting point in Bulgaria. With just ~€1 in minimum capital, a 10% flat corporate tax, and 5% dividend tax, Bulgaria offers the most competitive combined tax structure in the EU.

Process

From Enquiry to Operation — Formation Timeline: 1–3 Weeks

A clear, predictable process — so you always know what happens next.

Step one

Free Consultation

We assess your business needs and recommend the right entity type. We provide a full transparent quote with no obligation.

Step Two

Document Preparation

We prepare the Articles of Association or Founding Act, UBO declaration, director consent, and all supporting documents. Director specimen signatures are notarized and apostilled as required.

Step Three

Bulgarian Bank Account & Capital Deposit

A Bulgarian bank account is opened via agent assistance to receive the share capital deposit. The bank issues the capital contribution certificate required for Commercial Register filing.

Step Four

Commercial Register Filing

All documents are submitted to the Bulgarian Commercial Register. Upon approval, the company receives its UIC and is officially registered. Processing typically takes 3–5 business days after submission.

Step Five

Tax Registration

The company registers with the National Revenue Agency (NRA) for corporate income tax. VAT registration is applied for separately where required or when turnover thresholds are met.

Annual Requirements

Ongoing Annual Obligations

All Bulgarian companies are required to meet the following annual compliance obligations.

Annual Financial Statements

Annual financial statements must be prepared and submitted to the National Revenue Agency (NRA) and the National Statistics Institute (NSI). Filed by March 31 of the following year. Costs vary based on company size and complexity.

Corporate Income Tax Return

Annual return filed with the NRA. Flat 10% rate — the lowest in the EU. Due by June 30 of the following year.

Dividend Withholding Tax

5% withholding tax on dividends distributed to shareholders — the lowest dividend tax in the EU.

VAT Returns

Monthly or quarterly VAT returns filed with the NRA. Standard VAT rate 20%. Registration mandatory once annual taxable turnover exceeds BGN 100,000 (~€51,000) — updated threshold as of April 1, 2025.

NSI Statistical Reporting

Annual statistical reports submitted to the National Statistics Institute (NSI). Managed by the company’s accountant.

Office Address Renewal

Registered office address must be maintained at all times. Annual renewal coordinated by CORPEASE as part of the Premium package.

Payroll & Social Security

Companies with employees must register for payroll and social security contributions. CORPEASE can provide payroll support services.

Pricing

See our price list & choose your plan

All prices are in US Dollars. Government fees and third-party costs are included where specified.

Standard

Starting from

US$ 1,999

Includes:

Company name availability check
Preparation of Articles of Association or Founding Act and all documents
Notarization and apostille coordination for director signatures
Commercial Register filing
UIC registration and NRA tax registration
All government fees
One set of digital corporate documents

Not included:

Premium

Starting from

US$ 2,999

Everything in Standard, plus:

Capital deposit solution— no bank account required
Virtual office address — 1 year (Bulgarian registered office address)
VAT registration with the National Revenue Agency (NRA)
Corporate secretary service — 1 year
Automatic compliance reminders and filing deadline tracking

Recommended for international clients who need bank account assistance and a Bulgarian registered address — the two most common practical challenges for foreign founders.

Annual Compliance Services

Office address renewal (included in Premium package; separate arrangement required for Standard)
Annual financial statements filed with NRA and NSI — costs vary based on company size and complexity
Corporate income tax return — 10% flat rate, due by June 30 of the following year
NSI statistical reporting — annual returns managed by company accountant

Connect with our Experts

You can reach out to a customer support representative or send us an email. We will respond to your request at the earliest time possible.

Under 0 transactions

per month

Starting from

US$ 3,000^/year

You can reach out to a customer support representative or send us an email. We will respond to your request at the earliest time possible.

1-50 transactions

per month

Starting from

US$ 4,000^/year

You can reach out to a customer support representative or send us an email. We will respond to your request at the earliest time possible.

Connect with our Experts

Costs vary based on company size, number of transactions, and complexity. Connect with our Experts — You can reach out to a customer support representative or send us an email. We will respond to your request at the earliest time possible.

FAQs

Frequently Asked Questions

Can a foreigner own 100% of a Bulgarian company?

Yes. Bulgarian law permits 100% foreign ownership of EOOD and OOD entities. No local Bulgarian partner, shareholder, or director is required.

How long does company formation take?

Registration with the Bulgarian Commercial Register typically takes 1 to 3 weeks, including document preparation, bank account opening, and Commercial Register processing (3–5 business days after submission).

What is the corporate tax rate in Bulgaria?

Bulgaria has a flat corporate income tax rate of 10% — the lowest in the European Union. Dividends distributed to shareholders are subject to a 5% withholding tax — also the lowest in the EU.

What is the minimum share capital?

The minimum share capital for an EOOD or OOD is BGN 2 (approximately €1). This must be deposited in full into a Bulgarian bank account before registration, and the bank issues a capital contribution certificate confirming the deposit.

Do I need a Bulgarian bank account?

Yes. A Bulgarian bank account is required to deposit the share capital and receive the capital contribution certificate needed for Commercial Register filing. Most Bulgarian banks require director presence. CORPEASE can help! If you can’t open a bank account.

Is VAT registration mandatory?

VAT registration is mandatory once annual taxable turnover exceeds BGN 100,000 (~€51,000) — the updated threshold as of April 1, 2025. Voluntary VAT registration from incorporation is available and advisable for companies trading with other VAT-registered EU businesses. The standard Bulgarian VAT rate is 20%.

What ongoing compliance is required?

Bulgarian companies must file annual financial statements with the NRA and NSI, submit an annual corporate income tax return by June 30, file monthly or quarterly VAT returns if VAT-registered, and submit payroll declarations if employing staff.

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