🇧🇬 Company formation

Company Formation in Bulgaria: Types, Taxes and Costs

Forming a company in Bulgaria takes about three to seven days for the most common vehicle, an OOD or single-owner EOOD limited liability company, with Commercial Register approval often issued in one to three business days. The minimum capital is just EUR 1, and profits are taxed at a flat 10%, one of the lowest corporate rates in the EU, alongside a 20% standard VAT. Non-residents can own and manage 100% of the company and set it up remotely through a power of attorney, and Bulgaria now uses the euro after joining the euro area on 1 January 2026.

Last updated June 2026 · 6 min read

Bulgaria at a glance

Bulgaria is one of the EU jurisdictions founders most often use today, especially while the EU-wide 28th Regime (EU Inc) is still a proposal. Below are the verified essentials: company types, tax, capital, timing and whether you can set up remotely.

Company types in Bulgaria

  • EOOD / OOD (limited liability company) The single-member (EOOD) or multi-member (OOD) limited liability company, together about 85% of all Bulgarian companies. EUR 1 minimum capital, limited liability, 100% foreign ownership allowed.
  • AD (joint-stock company) For larger ventures or capital raises. EUR 25,000 minimum capital (25% paid before registration) and board governance.
Company formation in Bulgaria: key facts (last reviewed June 2026)
Corporate tax Flat 10% corporate income tax, one of the lowest headline rates in the EU (only Hungary's 9% is lower). Bulgaria also has a 10% flat personal income tax and a 5% dividend withholding tax (often reduced under EU rules and treaties).
VAT rate Standard VAT is 20%, with a reduced 9% rate for accommodation, books and certain goods. Mandatory registration applies once turnover exceeds about EUR 51,130 a year.
Minimum share capital EUR 1 minimum capital for an OOD or EOOD since Bulgaria adopted the euro on 1 January 2026 (previously the symbolic BGN 2). A joint-stock company (AD) requires EUR 25,000.
Setup time Commercial Register approval typically takes 1 to 3 business days after a complete filing, so a straightforward OOD/EOOD registers in roughly 3 to 7 days. Allow 2 to 4 weeks end to end once notarisation and bank account opening are included.
Remote setup Yes. A non-resident can form the company without travelling by granting a notarised (usually apostilled) power of attorney to a local lawyer who files electronically. The corporate bank account is the step most likely to need in-person verification.
Director / residency No residency or nationality requirement for the manager; foreigners can both own and manage the company, and 100% foreign ownership is permitted. If all owners are foreign non-residents, a local contact person for official correspondence is required.
Banking options Major banks include UniCredit Bulbank, DSK Bank, UBB (KBC) and Fibank. A temporary capital account is opened to deposit the share capital, then converted to an operating account; foreign-owned firms face enhanced KYC. Wise and Revolut are common for euro banking.
Our formation service from around €100 to €200 (estimated). You get a fixed quote in your free plan before you commit.

Bulgaria adopted the euro on 1 January 2026, becoming the 21st eurozone member, so capital and thresholds are now in euros. It pairs a near-zero capital requirement with a flat 10% corporate tax, a 10% flat personal income tax and a 5% dividend tax, making it a popular lean EU vehicle.

How to register a company in Bulgaria

The process is straightforward and, in Bulgaria, largely digital. In outline:

  1. Choose your company type and name. Most founders pick the EOOD/OOD (LLC); we confirm the name is available.
  2. Verify your identity. Yes. A non-resident can form the company without travelling by granting a notarised (usually apostilled) power of attorney to a local lawyer who files electronically. The corporate bank account is the step most likely to need in-person verification.
  3. File the incorporation. Once documents are signed, registration usually completes in around 3-7 days.
  4. Open a business account and register for tax/VAT. Major banks include UniCredit Bulbank, DSK Bank, UBB (KBC) and Fibank. A temporary capital account is opened to deposit the share capital, then converted to an operating account; foreign-owned firms face enhanced KYC. Wise and Revolut are common for euro banking.

We handle each step with licensed local counsel, so the paperwork, registered address and filings are done correctly the first time.

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Form your Bulgarian company in days

Tell us where you live and what you are building. Our formation service starts from around €100 to €200 (estimated); we confirm the right structure for Bulgaria, give you a fixed quote, and form the company with licensed counsel.

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Who can form a company in Bulgaria

Founders from outside the EU can own and run a Bulgarian company, with the cross-border requirements handled for you. We flag any residency or local-agent rule for Bulgaria up front, so there are no surprises.

Bulgaria and the 28th Regime (EU Inc)

EU Inc, the proposed 28th Regime, would let you register one company valid across all 27 EU member states. It is not law yet (expected around 2027-2028), so a Bulgarian company is one of the ready options you can use today. Forming an EU company now also positions you to adopt EU Inc later, as we cover in how to prepare an EU Inc company. To weigh Bulgaria against other countries, see company formation in Europe.

Frequently asked questions

Can a foreigner open a company in Bulgaria?

No residency or nationality requirement for the manager; foreigners can both own and manage the company, and 100% foreign ownership is permitted. Foreign founders can own the company from abroad, and we handle the cross-border steps, from identity checks to filings.

How long does company formation in Bulgaria take?

Registration usually takes about 3 to 7 days once your documents are ready. You get a firm timeline for your own case in your free plan.

What corporate tax does a company in Bulgaria pay?

Corporate tax is 10% flat, and standard VAT is 20%. We confirm the exact rates for your activity before you commit.

Can I form a company in Bulgaria remotely?

Yes. Formation in Bulgaria can be done without travelling: we verify your identity online and file everything for you.

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