How to Set Up a Company in Bulgaria: 2025 Guide

With Romania’s government preparing significant tax hikes, many Romanian entrepreneurs are looking for alternatives to domestic company incorporation.

Bulgaria, just across the border, is an attractive destination for company formation, offering a low corporate tax rate, EU membership, and a straightforward registration process. Here’s a comprehensive guide on how Romanians can set up a company in Bulgaria in 2025.

Why Set Up a Company in Bulgaria?

• Low Corporate Tax: Bulgaria has a flat corporate tax rate of just 10%, one of the lowest in the European Union.
• EU Membership: Companies registered in Bulgaria enjoy full access to the EU single market.
• Affordable Setup and Running Costs: Registration is inexpensive, and the cost of living and labour is much lower than in Western Europe.
• Skilled Workforce: Bulgaria offers a highly skilled, multilingual workforce, especially in IT and technical fields, at competitive rates.
• Fast Registration: The process can be completed in as little as 1–3 weeks, and can often be handled remotely via power of attorney.

Step-by-Step Guide: Setting Up a Bulgarian Company

Step 1: Choose the Right Business Structure

• Limited Liability Company (OOD/EOOD): Most popular for small and medium businesses. Offers limited liability and is suitable for single or multiple shareholders.
• Sole Proprietorship: Suitable for individual entrepreneurs, but it entails unlimited personal liability.
• Joint-Stock Company (AD): Suitable for larger businesses planning to raise capital.

Most Romanian entrepreneurs opt for an OOD (with multiple shareholders) or an EOOD (with a single shareholder).

Step 2: Select and Reserve Your Company Name

• The name must be unique and comply with Bulgarian naming conventions.
• Check availability via the Bulgarian Commercial Register.

Step 3: Prepare Incorporation Documents

• Articles of Association (for OOD/EOOD) or incorporation documents.
• Identification Documents for all shareholders and directors (passport/ID copies).
• Registered Address in Bulgaria (can be a virtual office).
• Proof of Paid-In Capital (minimum 2 BGN, about €1).
• Business Activity Description.

A local lawyer or incorporation specialist can prepare these documents in Bulgarian.

Step 4: Notarize Documents and Deposit Share Capital

• Sign the incorporation documents before a Bulgarian notary (can be done via power of attorney).
• Open an escrow account at a Bulgarian bank and deposit the minimum share capital.

Step 5: Register the Company with the Bulgarian Trade Register

• Submit all documents to the Trade Register (online or in-person).
• Registration is typically processed within 2–5 business days.

Step 6: Open a Corporate Bank Account

• Convert the escrow account to a regular business account.
• Provide company registration certificate, Articles of Association, and identification of authorized representatives.

Step 7: Register for Tax and VAT

• Register with the National Revenue Agency for corporate tax (10% flat rate).
• VAT registration is mandatory if annual turnover exceeds €25,600.
• Maintain proper accounting and submit annual financial reports.

Step 8: Set Up Accounting and Compliance

• Hire a local accountant for bookkeeping, payroll, and compliance with Bulgarian tax and labour laws.
• Ensure ongoing compliance with annual filings, social security contributions, and labour regulations.

Can You Set Up a Bulgarian Company Remotely?

Yes, the entire process can be handled remotely by granting power of attorney to a local lawyer or incorporation agent. This is especially convenient for Romanians who want to avoid frequent travel.

Costs of Setting Up and Running a Company in Bulgaria

• Company Registration: Typically ranges from €200 to €800, depending on legal and notary fees.
• Share Capital: Minimum 2 BGN (about €1).
• Virtual Office: Starting from €200/year.
• Accounting Services: From €50–€150/month, depending on volume and complexity.
• Bank Account Fees: Vary by bank; digital banks like Wise and Revolut are also available for non-residents.

Pros and Cons of Incorporating in Bulgaria

Pros	Cons
10% flat corporate tax	Bulgarian language required for documents
Fast, affordable setup	Need for local registered address
EU market access	Some bureaucracy for non-residents
Low labor and operational costs	Ongoing compliance and accounting needed
Remote setup possible

With Romania’s tax environment becoming less favourable, Bulgaria offers Romanian entrepreneurs a cost-effective, EU-compliant alternative for company formation. The process is streamlined, affordable, and can be completed remotely, making it an ideal choice for those seeking to optimize taxes and expand into the EU market.

Ready to take the next step? Consult a specialist in Bulgarian company formation to ensure a smooth and compliant setup.