Company Registration in Bulgaria: All You Need to Know

Company registration in Bulgaria: overview

With its skilled labour force and favourable corporate taxes Bulgaria welcomes all foreign investors.

The requirements for company formation are straightforward and the registration procedure is simple. It only takes 3 working days if you have all necessary documents prepared in advance.

Any foreign company or person can register a business activity in Bulgaria. An investor can be a foreign person who is a:

  • Bulgarian resident;
  • Resident of a country, member of the European Union;
  • Resident of a non-EU country.

What is more, a foreign investor can open a company in Bulgaria through power of attorney. The process can be delegated to a trusted local law firm. Companies registered in the country are considered Bulgarian legal entities. 

Even if the process of registering a business in Bulgaria is quite simplified, the law is still very strict. Any type of deceitful activities and practices (like for example bearer shares) are considered illegal and will be prosecuted.

Do you need legal advice and assistance? Contact our experienced lawyers.


Company formation procedure

Company formation goes through two basic stages: 

  • Preparation of the needed documents;
  • Registration of the company in the Registry Agency.

After a new company is formed, you should also hire accounting services in Bulgaria. That way you would be sure to comply with the taxation requirements in the country. Luckily, the tax rate in Bulgaria is quite low in comparison with other European countries.

The costs of the registration procedure vary depending on:

  • the type of company you choose to register in Bulgaria, and
  • the legally required minimum capital.

Types of companies

You can register five major forms of companies in Bulgaria:

  • Limited liability company, LLC (OOD);
  • Single-member limited liability company, SMLLC (EOOD);
  • Joint stock company - JSC (AD);
  • General and limited partnerships (SD/KD);
  • Sole proprietors (ET).


The most popular company type registered in Bulgaria is a limited liability company: LLC (OOD) or SMLLC (EOOD).

As their names suggest, both involve limited liability. The main difference between the two is the number of shareholders:

  • the LLC (OOD) is registered with a minimum of 2 shareholders;
  • the single-member LLC (EOOD) only needs 1 shareholder.

The minimum required capital is 2 BGN (about 1 EUR), which is deposited in a local bank account. In the case of an OOD this capital is divided into shares (minimum 1 BGN each). 

The newly registered company also needs to maintain a local legal address. Note that instead of setting up a traditional representative office, the OOD may use a virtual office service.

Joint stock company (JSC/AD)

Large-scale businesses can open a Joint stock company in Bulgaria.

The minimum capital in this case is 50,000 BGN (~25,000 EUR) for closed joint stock companies. Open JSCs trading shares at the stock market need a minimum capital of 50,000 EUR.

The name of the company should be unique and end in AD.

General/ Limited partnership (SD/KD)

The main difference between the two is related to their liability.

In a SD, unlimited liability implies that personal assets may be affected in the case of liquidation.

In a KD, the owner has a separate liability from the business entity. Therefore, in case of liquidation, the partners are only liable in accordance with their capital share.

Do you need legal advice and assistance? Contact our experienced lawyers.


Sole proprietors (ET)

The procedure for registering an ET is the simplest and cheapest.

Although ET is similar to EOOD (SMLLC), the latter is typically preferred. The reason is that with ET the owner keeps the full profit but also has unlimited liability.


Registering a company in Bulgaria: basic steps

As we already mentioned, the procedure for setting up a company in Bulgaria is quite straightforward:

  1. Choose a name for your Bulgarian company
  2. Appoint a representative agent for the company
  3. Deposit the minimum capital required (2 BGN for OOD) in your company’s bank account
  4. Prepare all necessary documents 
  5. File all company documents with the Commercial Register

The business name for your company can be verified and reserved online with the Commercial Register. It needs to be unique and end in OOD for LLCs (the most popular type registered). Note that all business names in the register are spelled in Bulgarian (cyrillic).

Part of the documents must be executed in front of a notary in Bulgaria. The Commercial Register requires a notarised specimen of the manager’s signature.

The minimum share capital is deposited in a local bank. You need to open a corporate bank account.

The registration fee can also be paid at this stage.

The documents needed for registering an OOD (LLC) in Bulgaria are:

  1. Registration form at the Commercial Register
  2. Articles of incorporation, General meeting documents
  3. Notarised signature specimen and written consent by company representative
  4. Bank statement for deposited minimum capital
  5. Company name certificate
  6. Copies of LLC owners’ IDs


Shelf companies

Company incorporation in Bulgaria can be quick and hassle-free with the support of our lawyers. If you need expert advice and help with your company registration, contact us.

However, you could skip the above-described steps. You can directly acquire an already registered firm to start a business in Bulgaria. 

The so-called shelf companies are registered with the Bulgarian Commercial Register. They have a valid VAT number but have had no activity. You can also find the term aged corporation, shelf corporation or ready-made company.

You can buy a shelf company and immediately start operating through it. You are not even required to physically be in the country. Of course, there are risks involved and we recommend you consult a trusted lawyer before you make the acquisition. 

We at “Danailova, Todorov and partners” will assist you along every step of the way. We will make all the necessary checks before the transfer of shares and ensure there are no risks for you and your business.

“Danailova, Todorov and Partners” Law Firm provides top-quality legal services on all aspects of trade law, contractual law, employment law, administrative law and tax law. We are a partner you can rely on.


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g.k. Gotse Delchev, ul. "Slavovitsa" , block 24Е, office 2, 1404 Sofia, Bulgaria

Western Industrial Zone, 2 Neptun Str.,
9000 Varna, Bulgaria

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