Why Bulgaria
Many foreigners consider Bulgaria a promising business destination and choose to launch a business venture there for several reasons. First of all, the procedure for establishing a company is fairly easy and does not require a lot of time. There are no restrictions regarding the investor’s nationality and European Union citizens can take advantage of the common EU laws and administrative tools (e.g. VIES).
Secondly, Bulgaria’s strategic geographical position facilitates trade and relations with various markets. The Balkan country is also known for its very low corporate taxes (compared to other EU states) and favourable VAT rate - only 20%. According to the European Commission’s macroeconomic forecast, Bulgaria’s GDP is expected to exhibit a 1.9% growth in 2024 and 2.9% in 2025. This, according to experts, will provide a stable economic environment for developing a business.
Setting up a company in Bulgaria
Bulgarian business law might seem a bit difficult to understand at a first glance but the Balkan country is in fact known for its fairly easy process for launching a business.
The most popular company type in Bulgaria is the so-called “druzhestvo s ogranichena otgovornost”, OOD as an abbreviation, that corresponds to LLC in English.
In order to set up an OOD as a foreigner in Bulgaria, the following conditions must be met:
- There need to be at least 2 investors (if you will be the sole proprietor, you will need to register an EOOD or ET in English);
- You need to open a Bulgarian bank account where the start capital of minimum 2 BGN (around 1 EUR) would be deposited;
- The minimal value of a share is 1 BGN;
- You need a physical address where your company would be registered, no matter if it is an actual office or not.
Do you need legal advice and assistance? Contact our experienced lawyers.
Institutions and officials
To establish a company in Bulgaria you will need to interact with the following institutions and officials:
- a notary for execution of some of the necessary documents;
- a bank representative for setting up a business bank account and deposition of the initial capital;
- the Bulgarian Commercial Register for recording your company’s name and registering the firm. The name should be written with Cyrillic letters in the official documents, even if it is in English or another foreign language.
Fees
Registering a company in Bulgaria naturally involves some administrative fees. We made a short list of what you can expect:
- 10 BGN for opening a bank account;
- 2 BGN for minimum capital deposit;
- 50 BGN for booking a company name (not obligatory);
- 10 BGN for a notarized specimen of the manager’s signature;
- 110 BGN registration fee (55 BGN if done online with an electronic signature).
Choose a legal expert who can help you
Even if the process of setting up an OOD in Bulgaria is relatively straightforward in comparison with other EU countries, you still need time to prepare all documents and make sure you have met all the requirements. Moreover, not knowing Bulgarian could turn out to be an obstacle in your way. Luckily, you have the option of hiring a lawyer who can take care of the whole procedure on your behalf.
We at “Danailova, Todorov and Partners” will gladly help you establish your business in Bulgaria. Our team of professionals can assist you in English, French, German, and Russian. We will arrange all necessary documents, represent you in front of the different institutions, and carry out all administrative procedures through power of attorney. You don’t even need to physically be in Bulgaria, as long as you can provide all the required information.
Additionally, our legal experts can be your business consultants once your company has been set up. Our law firm excels in commercial law and we could be of service for various situations, including drafting legal documents, company transformation or liquidation, commercial transactions, etc.
Do not hesitate to contact us with any questions or concerns you might have. We will gladly assist you and be your trusted legal partner in the management of your business. You can
