Setting up a company in Bulgaria

Key2Law supports entrepreneurs and international businesses in establishing a company in Bulgaria through a structured and compliant process. We assess your business model, recommend the most appropriate legal structure, and manage the incorporation procedure, including registration with the Bulgarian Commercial Register. Our approach ensures that your company is properly set up, meets all regulatory requirements, and is ready to operate within the European Union.

• One of the lowest corporate tax rates in the EU at 10%
• Access to the EU single market with simplified cross-border operations
• Suitable for IT, outsourcing, trading, and service-based businesses
• Competitive labor costs and growing skilled workforce
• Full legal support throughout incorporation and compliance stages

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Benefits of setting up a company in Bulgaria

Bulgaria is considered one of the most cost-efficient jurisdictions within the European Union, combining low taxation with access to the EU market. Its stable legal framework, EU membership, and competitive operating costs make it a practical option for businesses looking to establish or relocate operations within Europe.

• Flat corporate tax rate of 10%, one of the lowest rates in the EU
• Access to the EU single market and regulatory framework
• Low operating and labor costs compared to most EU countries
• Strategic location connecting Europe, the Middle East, and Asia
• Growing IT and outsourcing sector with skilled professionals
• Simplified company registration procedures
• Favorable environment for small and medium-sized enterprises

These advantages make Bulgaria an attractive destination for startups, IT companies, outsourcing firms, and businesses seeking a cost-efficient EU base.

Trust Key2Law with your company registration

Entering the Bulgarian market involves more than just filing documents with the Commercial Register. You need to choose the right legal structure, define ownership correctly, and ensure that your setup aligns with tax rules, banking requirements, and future operational plans. Key2Law approaches company formation as a practical business task, not just a formal procedure.

We help you structure the company from the beginning so it works in real conditions, including opening a bank account, working with local accountants, and meeting ongoing compliance obligations. Our team coordinates each step with local authorities and service providers, reducing delays and avoiding typical issues faced by foreign founders.

• Practical guidance on structuring your company for EU operations
• Support with banking, accounting setup, and local requirements
• Clear step-by-step process with realistic timelines
• Assistance in avoiding common mistakes that affect registration or operations
• Continued support after incorporation for compliance and reporting

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Which type of company can you register in Bulgaria?

Bulgarian corporate law provides several legal forms regulated by the Commercial Act, each designed for different business needs, ownership structures, and levels of investment. In practice, most entrepreneurs and foreign investors choose limited liability companies due to their simplicity, low capital requirements, and suitability for a wide range of activities.

Limited Liability Company (OOD / EOOD)

The OOD (multi-member) and EOOD (single-member) are the most commonly used company types in Bulgaria. They are flexible, easy to manage, and suitable for both local and foreign-owned businesses.

• Limited liability of shareholders
• Minimum share capital of BGN 2 (approx. €1)
• Can be established by one or more shareholders
• Managed by one or more directors
• Suitable for small and medium-sized businesses, including international operations

Joint Stock Company (AD)

The AD is typically used for larger businesses that require more capital or plan to attract investors. It has a more complex governance structure and stricter regulatory requirements.

• Minimum share capital of BGN 50,000 (approx. €25,000)
• Ability to issue shares and attract investment
• Requires a board of directors or a two-tier management system
• Suitable for large-scale or investment-driven companies

Sole Trader (ET)

A sole trader is an individual conducting business under their own name. This structure is simple to establish but does not provide separation between personal and business liability.

• No minimum capital requirement
• Full personal liability for business obligations
• Simplified registration process
• Suitable for small businesses and individual entrepreneurs

Branch of a foreign company

A foreign company may establish a branch in Bulgaria without creating a separate legal entity. This option is often used for expansion into the Bulgarian market.

• Not a separate legal entity from the parent company
• Parent company bears full liability
• Requires registration with the Bulgarian Commercial Register
• Suitable for international companies entering the market

Company registration cost in Bulgaria

The cost of setting up a company in Bulgaria is relatively low compared to most EU jurisdictions, mainly due to minimal state fees and simplified registration procedures. However, the total budget depends on legal support, document preparation, and additional services such as accounting and registered address. In practice, official government fees are only a small part of the overall cost, while professional services form the main expense.

Company registration package

This package is designed for entrepreneurs and international businesses looking to establish a company in Bulgaria with full legal and administrative support. It includes all essential steps required for incorporation and ensures that the company is properly registered and compliant with local regulations.

• Initial consultation focused on your business model and operational needs
• Selection of the most suitable legal structure (typically OOD or EOOD)
• Company name availability check and reservation with the Commercial Register
• Preparation of incorporation documents and corporate records
• Submission of documents to the Bulgarian Commercial Register
• Assistance with opening a corporate bank account for capital deposit
• Support with obtaining company registration number and official documents

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Requirements and documentation for company registration in Bulgaria

To register a company in Bulgaria, founders must comply with requirements set by the Commercial Register and applicable corporate regulations. The process is relatively straightforward, but it requires accurate preparation of documents and proper structuring of ownership and management to avoid delays during registration.

• Valid identification documents (passport or ID) of all shareholders and directors
• Proof of residential address of shareholders and directors
• Proposed company name for approval and reservation
• Articles of Association prepared in accordance with Bulgarian law
• Registered office address in Bulgaria
• Details of shareholders, directors, and ownership structure
• Specimen signatures of managing director(s), notarized
• Bank certificate confirming deposit of share capital
• Declaration of ultimate beneficial owners (UBO)
• Application for registration with the Bulgarian Commercial Register

Providing complete and correctly prepared documentation allows for fast incorporation, often within a few weeks, and ensures compliance with Bulgarian corporate requirements.

Company registration process and timeline in Bulgaria

Setting up a company in Bulgaria follows a clearly defined procedure handled through the Bulgarian Commercial Register. The process includes preparation of corporate documents, capital deposit, and formal registration. Due to the centralized electronic system, incorporation is relatively fast and, in standard cases, can be completed within a few weeks once all documents are properly prepared and submitted.

Stage 1. Business planning and structure selection

At the initial stage, it is important to determine the exact business activity and select the appropriate legal structure. This decision affects taxation, management structure, and compliance obligations under Bulgarian law, especially for companies planning cross-border operations within the EU.

• Analysis of business activities and objectives
• Selection of company type (typically OOD or EOOD)
• Review of ownership and management structure
• Initial assessment of regulatory and tax implications

Stage 2. Company name reservation

Before incorporation, the company name must be checked and approved to ensure it is unique and compliant with Bulgarian naming requirements. The name is submitted to the Commercial Register and reserved for the incorporation process.

• Company name availability check
• Submission of reservation request
• Review and approval by the Commercial Register
• Reservation of the approved name

Stage 3. Preparation of incorporation documents

Once the name is approved, incorporation documents are prepared in accordance with the Commercial Act. Accuracy at this stage is essential, as errors may result in rejection or delays during registration.

• Drafting of Articles of Association
• Preparation of shareholder and director details
• Completion of statutory declarations
• Notarization of specimen signatures of managing director(s)

Stage 4. Share capital deposit

Before submitting the company for registration, the share capital must be deposited in a bank account opened in the company’s name. A bank certificate confirming the deposit is required as part of the incorporation documents.

• Opening of a temporary corporate bank account
• Deposit of share capital (minimum BGN 2)
• Obtaining bank certificate confirming the deposit
• Preparation of supporting documents for registration

Stage 5. Registration with the Commercial Register

After all documents are prepared, the company is submitted to the Commercial Register for official registration. Once approved, the company is legally established and receives its identification number.

• Submission of incorporation documents
• Payment of state registration fees
• Review of application by the registry
• Issuance of Unified Identification Code (UIC)

Stage 6. Post-registration setup

Following incorporation, the company must complete several administrative steps before it can operate fully. These steps are required to ensure compliance with tax and financial regulations.

• Activation of permanent corporate bank account
• Registration with tax authorities
• Setup of accounting and bookkeeping processes
• Preparation for operational activities

Stage 7. Ongoing compliance and reporting

Once the company is operational, it must comply with ongoing obligations under Bulgarian law. Proper compliance is essential to maintain good standing and avoid administrative penalties.

• Maintenance of accounting records and financial statements
• Filing of annual financial reports
• Compliance with corporate and tax requirements
• Updating company data in case of changes

Talk to our team of experts

Key2Law provides practical support for entrepreneurs and international businesses entering the Bulgarian market. We help you set up your company in a way that works in practice, taking into account tax rules, banking requirements, and day-to-day operations from the very beginning.

Our team manages the entire incorporation process, including preparation of documents, coordination with the Commercial Register, and guidance through post-registration steps. This ensures that your company is not only registered quickly, but also properly structured and ready to operate without complications.