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Company formation in Bulgaria

Comprehensive assistance in company formation, including banking services

How to form a company in Bulgaria

1
Document submission
You submit to us necessary documents of the future founders and directors for the purposes of company formation in Bulgaria and opening a bank account in Bulgaria
2
Payment of services
Payment of our services for company formation in Bulgaria and/or bank account assistance in Bulgaria
3
Company formation
We register a new company in Bulgaria for you. Upon completion of the registraion corporate documents are either delivered to you or submitted to a bank for the subsequent opening of a bank account

4
Bank account opening
In case you request an assistance with a bank account, we arrange an interview at the bank for you, inform you about the date of the visit and accompany you on your way to the bank. After the bank account is opened and active you receive corporate documents of the formed company as well as the access to the bank account
Key aspects to consider prior to forming a company in Bulgaria
Регистрация фирмы в Болгарии
One of the key advantages of company formation in Bulgaria are low operating costs compared to companies from other major EU states.
1. Founders of a company in Bulgaria can either be resident or non-resident in Bulgaria. Founders can be either individuals or legal entities

2. A resident or a non-resident individual can be a director in Bulgaria. It is not required for Bulgarian companies to have a Bulgarian citizen as one of their shareholders or directors

3. One individual can be simultaneously a shareholder and a director in a Bulgarian company if such company is registered as a ЕООД (A limited liability company with one founder)

4. However, registration of a company in Bulgaria as a ООД (A limited liability company) requires at least 2 shareholders

5. There is no requirement for creating substance in Bulgaria - no need to hire local employees or rent an office in order to conduct business in Bulgaria

6. Minimum capital requirement in Bulgaria for ЕООД and ООД is BGN 2

7. Information about company founders, shareholders and directors after a company is registered in Bulgaria is publicly available in the state corporate register

8. A company in Bulgaria can be registered remotely, on the basis of a power of attorney. In this case, timeframe for company formation in Bulgaria amounts to around 7 working days. In the case of a personal visit, timeframe amounts to just 3 working days
Cost of services
Formation of an ЕООД/ООД
Timeframe - 7 working days
EUR 800
Standard
  • Company formation
  • State fees
  • Legal address for 1 year
  • Notary services
  • Company seal
Select
EUR 1200
Extended
  • Company formation
  • State fees
  • Legal address for 1 year
  • Notary services
  • Company seal
  • Bank account in Bulgaria
Select
EUR 1600
Ultimate
  • Company formation
  • State fees
  • Legal address for 1 year
  • Notary services
  • Company seal
  • Bank account in Germany
Select
Send a request
for company formation
Bank account in Germany at the Commerzbank AG
EUR 1400
Accounting services for 1 year
EUR 850
Send a request
for accounting services
Readymade companies in Bulgaria with a bank account
From EUR 1500
Business-partner search in Bulgaria
From EUR 500
Send a request
for business-partner search

Advantages of forming a company in Bulgaria

Attractive business-environment
  • A company in Bulgaria can be used for trading locally within the EU or between the EU and CIS or Turkey, as well as for trading internationally
  • Big opportunities for the establishment of travel business in Bulgaria
  • Free trade with other EU states
Stability and security

  • Political stability
  • Bulgaria is a member of the European Union and the Council of Europe, as well as a member of the World Trade Organization
  • European legal standards
  • Comprehensive protection of property rights
  • Investment protection
  • Low inflation rate
Tax benefits

  • One of the lowest corporate and personal tax rates in the EU - 10%
  • Low withholding tax rate on paid dividends - 5%
  • Multiple tax treaties
No foreign exchange controls
  • Bulgarian state regulations do not impose foreign exchange controls, however, it is required for transactions over BGN 30,000 to provide banks with supporting documents
Ease of establishing and doing business
  • Fast company formation in Bulgaria
  • Minimum capital requirement in Bulgaria for ЕООД and ООД is BGN 2
  • 100% foreign ownership is allowed
  • It is possible to open a corporate bank account in major european banks
  • Affordable real estate for business purposes
  • Low cost of highly qualified labor
  • Lowest operating costs in the EU
More about Bulgaria
General information
Bulgaria is located in South-Eastern Europe, in the eastern Balkan peninsula. Bulgaria boders Romania, Serbia, North Macedonia, Greece and Turkey. Access to the Black Sea allows Bulgaria to conduct maritime trade with Russia, Ukraine, Georgia and Turkey, as well as with other Mediterranean States.

Territory of Bulgaria amounts to 110,994 square kilometers. Bulgaria has a developed road and railroad infrustructure, two big seaports in Varna and Burgas, it also has 4 airports in Sofia, Plovdiv, Burgas and Varna.

Bulgaria has a population of 7,1 million people making that 1,4% of the EU population. 73,3% of population lives in urban area.
Economy
Official currency of Bulgaria is Bulgarian lev (BGN).

Bulgarian economy in the recent years has reached a turnover of EUR 51 billion. Fast growth of the GDP was facilitated by the real estate, energy and IT sectors. Overall, the industrial sector's share in the economy is on average 28,3%, service sector - 67,4%, agriculture - 4,3%. In the coming years the GDP growth is expected at 3%. Inflation rise is expected at 1,4-1,5%.

Foreign direct investment amounted to EUR 902 million in 2017, EUR 250 million more than in 2016.
Types of business-activities
Considerning the geographic location of Bulgaria international business uses this jurisdiction for the purposes of trading, expedition services in the region, making supplies from Turkey and CIS states to the EU, some entrepreneurs establish travel business in the region.

Also, due to favorable taxation, foreign entrepreneurs form companies in Bulgaria in order to conduct IT-business, provide internet services, provide electronic money transfer and virtual currencies services, and local banks agree to open a bank account for these types of services within a very short time.

Among the restricted business-activities for foreign entrepreneurs are:

  • national securtity
  • tobacco products
  • medical research
  • ownership of land used for agricultural purposes.
Key taxes and tax rates
  • Corporate income tax - 10%
  • Dividend withholding tax - Standard tax rate 5%
  • Interest withholding tax - 0%, 10%
  • Royalties withholding tax - 0%, 10%
  • Capital gains tax - 10%
  • VAT - Standard tax rate 20% or reduced tax rates from 0% up to 9%
  • Personal income tax - 10%.
Key types of business entities
Key types of business entities in Bulgaria are the following:

1. General partnership (Събирателно дружество - СД)
2. Limited partnership (Командитно дружество - КД)
3. Partnership limited by shares (Командитно дружество с акции - КДА)
4. Limited liability company (Дружество с ограничена отговорност - ООД)
5. Limited liability company with one founder (Единолично дружество с ограничена отговорност - ЕООД)
6. Public limited company (Акционерно дружество - АД)
7. Individual entrepreneur (ЕТ — Едноличен търговец)
8. Branch of a foreign legal entity (Клон)

According to Bulgarian corporate law, all of the above business entities are considered legal entities. The most popular types are ООД and ЕООД.

To receive a detailed description of the company formation procedure in Bulgaria and information about documents necessary for company formation in Bulgaria please contact our experts.
Send a request for company formation in Bulgaria
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Contacts and address
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E-mail: request@pil-services.com
Skype: info@pil-services.com
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