Company formation in Bulgaria

Bulgaria is an increasingly desirable jurisdiction for conducting business due to its low taxes and straightforward company registration procedures. Corporate tax is only 10%, making the country one of the lowest taxed in the European Union. Company registration in Bulgaria requires only a few days and requires a minimum authorized capital. The labor laws are quite flexible, which makes it easier to hire and manage staff. Bulgaria has a favorable geographical position at the crossroads of trade routes between Europe and Asia. The country is also a member of the EU, which allows free trade with other countries of the Union. Its moderate operating costs and access to qualified workforce make Bulgaria attractive to foreign investors. Bulgaria has shown strong GDP growth over the past five years, making it one of the finest places to start a new business.

If you want to reap all the rewards of starting a business in Bulgaria, please get in touch with Manimama. Our experts will help you register your company quickly and professionally, ensuring you reliable support every step of the way.

Bulgaria

Legal Opinion about Bulgaria as a Jurisdiction for Company Formation

Ganna Voievodina

Manimama, CEO

“The simplicity and quickness of company registration in Bulgaria, as well as the availability of skilled labor create the best conditions for fast start-up and growth. Moreover, as a member of the EU, Bulgaria provides its businesses with access to the EU common market, opening up tremendous opportunities for trade and partnership. Manimama will organize your company registration in no time!”.

Our Packages

Our comprehensive packages simplify the process of setting up the perfect legal entity for your business whether you are a small start-up, a non-profit company, or an international company. Let us guide you through every step, ensuring your business begins on a solid foundation.

Company Formation

€2,500

  • Company formation in Bulgaria
  • Opening a bank account
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Additional services

€1,000

  • Registered address for 1 year
  • VAT registration
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Documents

€600

  • Apostille corporate documents (Certificate of incorporation and Articles of Association)
  • Document delivery
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Key Numbers about Bulgaria as a Jurisdiction for Company Formation

at least 1

director for an EOOD

up to 1-2 week

timeline for company registration

€1

minimum share capital

10%

is corporate income tax (CIT) rate

10%

is personal income tax (PIT) rate

20%

is value added tax (VAT) rate

Set up Your Company in Bulgaria in Several Steps

Step 1. Initial Setup

  • Initiating a preliminary project assessment
  • Preparation and filing of the package of documents

Step 2. Company registration

  • Verification and reservation of the company name at the Bulgarian Commercial Register
  • Facilitating the notarial process for the company's official registration
  • Opening a bank account in the owner's name and depositing a minimum of €1 of the share capital
  • Incorporating the company's data into the Bulgarian Commercial Register
  • Obtaining the Certificate of incorporation issued by the Bulgarian Commercial Register, Memorandum and Articles of Association
  • Obtain a business license (if applicable)
  • Register for VAT - If the company is expected to have a turnover of more than BGN 100,000 per year, it must register for VAT

Requirements for Company Formation in Bulgaria

Before deciding to set up a new company in Bulgaria, read the information below to understand the characteristics of a Limited Liability Company (LLC) / Druzhestvo s Ogranichena Otgovornost (OOD):

Shareholders: single-member LLC or EOOD (Ednolichno Druzhestvo s Ogranichena Otgovornost) must have only one shareholder, while OOD (Druzhestvo s Ogranichena Otgovornost) is required to have two or more shareholders (in general, a shareholder can be a natural or legal person and there are no residency requirements).

Director: the company must have a minimum one director (there are no residency requirements for a director and it can only be an individual).

Company Secretary: not required.

Minimum Share Capital: LLC must be registered with a minimum capital of BGN 2 (approx. €1), paid before incorporation.

Legal Address: the company must have a registered legal address in Bulgaria (it can be its own premises or a rented one).

Liability: the liability of the shareholders in an LLC is limited to the amount of capital they have invested in the company.

Accounting: the company will be required to file its annual financial statements with the Bulgarian Trade Register every year, before March 31st.

Taxes in Bulgaria

Corporate income tax (CIT)
  • This tax regime is regulated in the Corporate Income Tax Act.
  • The flat rate is 10%.
  • Bulgarian companies are taxed by corporate tax on their worldwide income. Foreign companies are subject to tax in Bulgaria on profits derived from activities performed through a permanent establishment in the country and on income from Bulgarian sources.
  • The tax period for the assessment of the tax will be the calendar year. In respect of any newly incorporated taxable persons, the tax period shall cover the period from the date of registration thereof until the end of the year.
  • Tax incentives: newly established companies investing in undeveloped regions (available for 5 years) - exempt from CIT is 10%; production companies investing in municipalities with unemployment higher than 25% from national average rate - exempt from CIT is up to 100%; licensed real estate investment trusts and collective investment schemes - exempt from CIT is 100%; manufacturing companies investing in undeveloped regions - exempt from CIT is 100%.
Personal income tax (PIT)
  • This tax regime is governed by the provisions of the Personal Income Tax Act.
  • The flat tax rate is 10%.
  • Resident individuals are taxed on their worldwide income, while non-residents are taxed on their income derived from sources in Bulgaria.
  • The tax period for personal income taxation is the calendar year, with the exception of income taxed subject to a final tax.
Value-added tax (VAT)
  • The VAT regime is regulated in the Value Added Tax Law.
  • The standard tax rate is 20%
  • The reduced VAT rate is 9% (applicable for hotel accommodation; camping or caravan for tourist groups; books and periodicals; foods for babies) and 0% (intra-community passenger travel by air and sea; exports and intra-community supplies of goods; gold to central banks; services related to vessels and aircraft).
  • In the case of mandatory VAT registration (exceeding the prescribed threshold), an application for registration with the tax authorities must be submitted within 14 days after the end of the tax period in which the amount was exceeded.

Double taxation avoidance agreements in Bulgaria: Albania, Austria, Belarus, Belgium, Croatia, Cyprus ,Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Moldova, Montenegro, Netherlands, North Macedonia, Norway, Poland, Portugal, Romania, Russia, Serbia, Slovakia, Slovenia, Spain, Sweden, Switzerland, Turkey, Ukraine, United Kingdom, Bahrain, Egypt, Iran, Israel, Jordan, Kuwait, Lebanon, Qatar, Saudi Arabia, Syria, United Arab Emirates, Algeria, Egypt, Morocco, South Africa, Armenia, Azerbaijan, China, Georgia, India, Indonesia, Japan, Kazakhstan, Korea, Mongolia, North Korea, Pakistan, Singapore, Thailand, Uzbekistan, Vietnam.

Bulgarian legislation is fully harmonized with EU legislation. The government's policy is aimed at creating a friendly business climate for foreign investors.

Start Your Company Formation Process with Manimama

There are numerous reasons why Manimama is the leading company formation agent in Bulgaria:

Expertise in Bulgarian Regulations

  • 1. Manimama has an in-depth understanding of Bulgaria's legal and regulatory framework.
  • 2. Our team ensures all legal requirements are meticulously met for a seamless company formation process.

Local and International Experience

  • 1. With extensive experience in both local and international markets, Manimama can cater to a diverse range of business needs.
  • 2. Our expertise spans various industries, providing customized solutions for each client.

Efficient and Timely Service

  • 1. We pride ourselves on our swift turnaround times, ensuring your company is registered promptly.
  • 2. Our efficient processes minimize delays and get your business up and running quickly.

Client-Centric Approach

  • 1. Manimama prioritizes customer satisfaction by offering personalized support and guidance.
  • 2. Our dedicated team is always available to address any concerns and provide expert advice.

Robust Network of Local Partners

  • 1. We have established strong relationships with local authorities, banks, and service providers.
  • 2. This network ensures that your business receives the best possible support and resources.

Ongoing Compliance Support

  • 1. We provide continuous support to ensure your business remains compliant with Bulgarian laws.
  • 2. Our team keeps you updated on any regulatory changes that may impact your company.

Frequently Asked Questions

  • What is the minimum capital of the company?
    The minimum capital of the company is 2 BGN that is about 1 EUR.
  • Can I choose any name for my company?
    Yes, you have the right to choose any name for your company that is unique. Prior to preparing company documents, we will check whether another company with the same name is registered in the Commercial Register.
  • Do I have to have a company address in Bulgaria?
    Yes, you need an address in Bulgaria as an official company address.
  • Can a non-EU citizen be a director or shareholder in an LLC?
    A foreign national of any nationality (EU or non-EU) may be a director and shareholder of a company registered in Bulgaria.
  • How long does it take to register a company in Bulgaria?
    It typically takes about 1 to 2 weeks to complete the registration process, assuming all documents are in order.
  • What are the steps to register a company in Bulgaria?
    • Check and reserve the desired company name.
    • Draft and notarize necessary documents.
    • Deposit the required share capital in a bank.
    • Submit all documents to the Bulgarian Commercial Register.
    • Obtain a company stamp, register for VAT (if applicable), and set up accounting.
  • Can I form a company in Bulgaria remotely?
    Yes, company formation can be done remotely through a power of attorney, allowing a representative to handle the process in Bulgaria.
  • Do I need a special license to operate certain types of businesses in Bulgaria?
    Certain industries, such as banking, insurance, and telecommunications, require special licenses. It is essential to check the specific licensing requirements for your industry.

Client Feedbacks

“I had the pleasure of working with Manimama OU for my business incorporation and I couldn't be more satisfied with their services”.

“Thanks to Manimama OU, my business is now up and running smoothly. Highly recommend them for any legal needs”.

"Choosing Manimama OU was one of the best decisions I've made for my legal issues. Their team provided outstanding support and guidance during a particularly challenging time”.

Manimama as the Best Solution for Your Company Formation in Bulgaria

Choosing the right partner for company registration is crucial for a smooth and successful business launch. At Manimama, our legal experts specialize in navigating complex legal landscapes, providing holistic solutions tailored to your needs.

Comprehensive Legal Expertise
Since our inception, Manimama has been at the forefront of tackling intricate legal challenges with innovative and thorough solutions. Our team of dedicated lawyers evolves alongside our firm, reflecting our people-centric philosophy and commitment to excellence.

Results-Driven Approach
Manimama is a results-oriented law firm that offers an extensive array of legal services to both individuals and corporate entities. We pride ourselves on maintaining the highest standards of integrity and a "client-first" approach, leveraging our extensive skills and knowledge to achieve the best outcomes for our clients.

Global Presence and Local Expertise
Our journey began with the establishment of Manimama OU's first European office in Estonia, a country renowned for its progressive regulation of virtual currencies, international investments, fintech, and gambling sectors. Estonia’s favorable tax system and digital-friendly investment climate provided a robust foundation for our expansion.

Community Commitment
At Manimama, we believe in giving back to society and making a positive impact. Our commitment to social responsibility is integral to our operations, ensuring that we contribute to making the world a better place while helping our clients achieve their business goals.

By choosing our company formation service in Bulgaria, you are partnering with a law firm that values integrity, expertise, and client satisfaction. Let us help you set up your company in Bulgaria and pave the way for your business success.

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