Company Lawyers Bulgaria
Registering a company in Bulgaria offers several compelling benefits for foreign and domestic entrepreneurs alike:
Low Corporate & Dividend Taxes
Bulgaria applies a flat 10 % corporate income tax, one of the lowest in the European Union.
Dividends distributed to shareholders are taxed at 5 %
This tax regime makes Bulgaria very attractive for profit retention and reinvestment.EU Membership & Market Access
As an EU member since 2007, Bulgaria gives companies the right to trade freely within the EU without customs barriers.
Your Bulgarian-registered company can issue invoices accepted across EU states.Extensive Double Tax Treaties
Bulgaria has signed nearly 70 bilateral treaties to prevent double taxation.
This helps reduce the tax burden on cross-border income.Low Costs of Doing Business
Labour costs, office rent, service fees and other operating costs are among the lowest in Europe.
Incorporation and legal services are relatively affordable.
Minimum capital requirement is minimal (see detailed section below).
Skilled Workforce and Infrastructure
Bulgaria has a well-educated, multilingual talent pool, particularly in tech, engineering, and outsourcing.
The physical and digital infrastructure improves logistics, connectivity, and operations.Tax Incentives & Deductions
Tax credits or deductions for hiring long-term unemployed, persons with disabilities, or elderly.
Grants of up to 100 % of corporate tax owed in high-unemployment or underdeveloped regions for qualifying investments.
Deductibility of certain investment costs subject to conditions.
Business Structures You Can Use
| Structure | Key Features | Pros & Cons |
|---|---|---|
| Limited Liability Company (OOD / Ltd) | Most common; suitable for SMEs | Pros: minimal capital, limited liability, full legal personality. Cons: obligations to file accounts and compliance. |
| Joint Stock Company (AD / JSC) | For larger enterprises or those issuing shares | Pros: scalable, issuance of shares to public. Cons: stricter requirements, higher compliance cost. |
| Branch of a foreign company | Not a separate legal entity; extension of parent company | Pros: no minimum capital, direct link with parent. Cons: parent is liable, limited autonomy. |
| Representation / Liaison Office | Non-commercial presence | For marketing, research, administrative support. No direct trade. |
In many cases, a local Ltd (OOD) is the most flexible and advantageous option for foreign investors.
Minimum Capital, Fees, and Timeframe
The minimum statutory capital for a single-member OOD is symbolic (approx. 2 BGN, roughly €1).
Тime to register: Frequently between 5 and 9 working days, assuming clean and complete documentation.
How to Register a Bulgarian Company
Choose & reserve a company name
Check availability in the Bulgarian Commercial Register.Draft incorporation documents
Articles / Memorandum of Association
Declarations of shareholders and directors
Powers of attorney, if someone acts on your behalf
Certify signatures & legalize documents
If documents are signed abroad, they must be notarized and apostilled or legalized, and officially translated into Bulgarian.Open a temporary deposit account
Deposit the initial capital in this account.Submit documents to the Commercial Register
Electronic or in-person submission.Register in BULSTAT & tax registers
Within 7 days post-registration, the entity is registered in the statistical (BULSTAT) system.Close deposit account; open operational business bank account
Register for VAT (if required or desired)
See dedicated section below.Social security, payroll, licenses (if hiring staff or regulated activity)
These registrations are typically required within 7 days of hiring employees
VAT / Indirect Tax: Rules for Bulgaria When VAT Registration Is Mandatory or Optional
As of 2025, the mandatory threshold for taxable turnover in Bulgaria is 100,000 BGN within 12 consecutive months.
For foreign (non-resident) companies, there is no threshold; VAT registration is required before the first taxable supply in Bulgaria.
Examples of operations that trigger mandatory VAT registration for foreign entities:
Importing goods
Storing goods in Bulgaria (for resale)
Distance sales / e-commerce to Bulgarian consumers
Certain services where “reverse charge” rules apply
Registration Process & Documentation
As of 2025, the mandatory threshold for taxable turnover in Bulgaria is 100,000 BGN within 12 consecutive months.
For foreign (non-resident) companies, there is no threshold; VAT registration is required before the first taxable supply in Bulgaria.
Examples of operations that trigger mandatory VAT registration for foreign entities:
Importing goods
Storing goods in Bulgaria (for resale)
Distance sales / e-commerce to Bulgarian consumers
Certain services where “reverse charge” rules apply
Advantages & Obligations of VAT Registration
Advantages:
Right to deduct input VAT on purchases and expenses.
Improved credibility with business clients (especially in B2B).
Simplifies intra-EU trade if supplying goods to other EU states.
Obligations / Risks:
Monthly or quarterly VAT return filings depending on turnover
Closer scrutiny by tax authorities
Compliance burden (proper bookkeeping, fact-checked invoices)
Buying Real Estate, Land & Agricultural Parcels via Company
Registering a Bulgarian company is often strategic when acquiring real estate or land assets. Benefits include:
Ability to split ownership between legal entity and individuals
Precise allocation of liabilities to the legal entity
Possibility to hold agricultural land, forests, or plots, which may have restrictions for individuals
Better flexibility in structuring exit strategies or sales
However, you must respect Bulgarian land laws, foreign ownership rules, zoning regulations, and procedural requirements for title transfers.
Set up the bulgarian company
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A branch is not a separate legal entity; it operates under the foreign parent, with liabilities resting on the parent company.
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A full Bulgarian company (e.g. OOD) has its own legal personality, can contract independently, hold assets, and limit liability of owners.
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Branch registration avoids capital deposit but imparts less autonomy and increases risk to parent entity.
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In many cases, forming a local Ltd is more flexible and commercially robust.
Risks & Challenges to Anticipate
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Bureaucracy and procedural delays are still present in certain sectors.
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High social security costs for employers (~18.9 % and 19.65 % contributions) can reduce net labour advantage.
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Some expense types (especially incurred abroad) may not always be deductible under Bulgarian rules.
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Regulatory changes may shift VAT thresholds or compliance obligations.
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Language, legal nuance, and local administrative culture require trusted local advice and partner.
How We Serve You: Our End-to-End Support Package
When you engage our firm, you receive:
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Complete incorporation service (drafting, filing, liaising)
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Remote or in-person representation in Bulgaria
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Banking account setup, including assistance with Bulgarian banks
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VAT registration and tax compliance
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Ongoing legal, accounting, audit and corporate secretarial support
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Discounted rates: 10 % off all future services for clients
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Tailored advice: choosing entity type, structuring assets, leveraging tax treaties
We aim for speed, accuracy, compliance, and minimal friction.
Our Bulgarian legal team is fluent in English and experienced with international clients.
Key Practical Tips for Prospective Clients
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Use power of attorney so you don’t have to travel to Bulgaria
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Deposit more than the minimum capital — it lends credibility
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Declare realistic planned operations to tax and registration authorities
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When dealing with non-EU nations, ensure mutual assistance tax agreements exist
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Keep all documents legally translated and apostilled ahead
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Budget for accounting / compliance overhead early
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Consider whether VAT registration as voluntary (even if below threshold) gives strategic benefit
For a personalized consultation or a cost estimate for your project, contact us.
We will evaluate your goals, propose optimal structure, and guide you through each step.
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