January 26, 2026

Starting a Business in Bulgaria

Starting a Business in Bulgaria is a wise choice for UK founders aiming for EU access without high costs. Bulgaria has a stable legal system, clear incorporation rules, and a good base for trade across Europe. Many teams aim to expand into the EU from Bulgaria while keeping costs low.

Choosing the right type of company in Bulgaria is crucial. An OOD might be perfect for small or medium firms, while an AD is better for growth and investment. We help with all the necessary steps, including compliant filings, a registered address, and a timely capital deposit.

After setting up, Bulgaria business registration involves more practical steps. You’ll need a local bank account, possibly VAT registration, and to keep books according to Bulgarian standards. The tax rates are attractive too: 10% corporate tax, 10% personal income tax, and 5% dividend tax.

At Start Company Formations, we support you from start to finish, with clear timelines and easy-to-understand updates. We also help with business immigration and regulated areas like Gaming Licences and FX & Crypto Licensing Companies. This ensures your business structure meets all the rules from the start.

Understanding the Bulgarian Business Landscape

When we plan to enter the market, we first look at the Bulgarian economy. We also understand how business works every day. Bulgaria is a cost-effective EU base with a predictable tax system that UK founders like.

It’s important to plan for document formalities, translation, and the local administration’s pace.

Economic Overview

The key figure for planning is the Bulgaria GDP growth forecast for 2024, at 2.7%. This helps with budgeting and demand modelling. The 10% flat corporate tax and a tax year from 1 January to 31 December make financial planning easier.

Starting a business means registering a legal company or branch. This lets the business trade, hire staff, and take on liabilities. It’s the step that makes a market test into a real business.

Key Sectors for Investment

Investors often look at trade and technology in Bulgaria. The country is a trade hub, connecting Europe with the Middle East and Asia. This supports import, export, and distribution.

Trade and distribution: Bulgaria has good road, rail, ports, and cross-border freight options. This keeps supply chains moving, especially for urgent goods.
Technology and services: Bulgaria is known for its IT talent. It has 6,500+ IT graduates each year and is ranked among the top five in programming skills.

Many teams start in Sofia, the business hub. Sofia is seen as a gateway between East and West Europe. This makes it easier to coordinate with clients, suppliers, or staff across different areas.

Types of Business Entities in Bulgaria

Choosing the right legal form is crucial. It affects your risk, taxes, and funding options. We guide UK founders through the options, considering both quick market entry and long-term growth.

We’ll look at three main types. A branch office in Bulgaria is also an option for those already trading abroad.

Limited Liability Company (OOD)

Many foreign owners start with OOD Bulgaria. It keeps business debts separate from personal assets, protecting your wealth.

It’s easy to set up, with options for one owner (EEOD) or multiple (OOD). Decisions are made by shareholders, while a manager handles daily tasks.

Minimum capital is BGN 2, but more is often chosen for credibility.
Clear ownership and decision-making.
Ideal for trading, services, and small teams seeking liability protection.

Joint Stock Company (AD)

AD Bulgaria is for bigger ambitions, especially where shares and investment are key. It allows for share issuance, aiding growth and market strength.

The minimum share capital is BGN 50,000. Expect more formalities, stricter reporting, and higher costs, with some fees reaching BGN 300.

Best for larger operations and raising capital.
More governance but a stronger structure for growth.
Good for clear share transfer rules and investor confidence.

Sole Proprietorship

A sole trader setup in Bulgaria offers full control and a direct link to the business. However, it means personal liability, where business debts can affect your assets.

We also explore other options for changing risk or ownership needs. A branch office in Bulgaria can be quicker for local operation, with liability usually with the parent company.

Legal Requirements for Business Registration

Setting up a company in Bulgaria needs careful planning. We help founders through the steps for the Bulgarian Trade Register. This ensures your filing is clear and moves smoothly.

Most problems come from missing or wrong paperwork, not complex ideas. The Commercial Register Bulgaria system is strict. It demands consistent details in all documents.

Necessary Documentation

We start with the basic pack: a foundation deed or articles of association. For an OOD with more than one shareholder, a notarised memorandum is needed. Also, documents confirming key decisions are required.

The manager must be a legal adult. You’ll need their consent and a notarised signature. Plus, proof that the share capital has been paid into a capital account Bulgaria.

Foundation deed or articles of association (entity-specific)
Manager/director consent and notarised specimen signature
Bank evidence for the capital account Bulgaria deposit
Proof of a registered office address Bulgaria
Passport copies for foreign directors and, where requested, proof of residence or criminal record checks

Language is important. Official documents must be in Bulgarian or translated and certified. Without certification, corrections may be needed, slowing down the registration.

Registration Process

We start with a name search to check availability in the Commercial Register Bulgaria. After confirming the name, we open the capital account Bulgaria and deposit the initial share capital. This step gets the bank’s confirmation.

The incorporation file is then sent to the Registry Agency Bulgaria. For an LLC, the state fee is BGN 110. Online submission requires a Qualified Electronic Signature, costing around BGN 27 from providers like B-Trust, Borica, or InfoNotary under EU eIDAS.

Check company name availability on the Commercial Register Bulgaria platform
Open the capital account Bulgaria and deposit share capital
Prepare the filing set, including Form A4 Bulgaria and supporting notarised documents Bulgaria
Submit to the Registry Agency Bulgaria, pay fees, and track the application online
Receive the unique company number and registration certificate once approved in the Bulgarian Trade Register

After registration, keeping records up to date is crucial. Ensure the registered office address Bulgaria and director details are current. This helps with ongoing compliance and avoids issues when you need certificates or future filings.

Taxation System in Bulgaria

Bulgaria’s tax system is a big draw for UK founders. It’s straightforward, with stable rates and easy planning. This makes it a great place for tax planning Bulgaria.

Corporate Tax Rates

The main corporate tax rate is 10% on profits. This makes budgeting easier for many businesses. It helps avoid unexpected costs when money gets tight.

Dividend tax is 5% on payouts. Bulgaria also has over 70 double tax treaties. These can help avoid paying tax twice on international income.

We work closely with the Bulgarian National Revenue Agency. You need to file financial statements and tax returns by 30 June each year. This includes activity reports too.

Value Added Tax (VAT)

The standard VAT rate is 20% for most goods and services. There’s a 9% rate for some tourism and accommodation services. VAT affects your profit margins and how you manage cash flow.

You must register for VAT if your turnover hits BGN 100000 in a year. It’s also important for international trade. Rules about where you charge VAT and how you prove it can affect your invoicing.

Getting VAT registration can take 12 days. We try to apply at the start of contracts and invoices. This keeps VAT reporting in line with your business operations.

Personal Income Tax

Personal income tax is a flat 10% in Bulgaria. This is important for salary planning and director’s pay. Payroll also includes withholding and social contributions, with monthly payments due on time.

Agree pay structures early to avoid rushed contract changes.
Set a payroll calendar that matches monthly filings and payments.
Keep supporting documents ready for routine checks by the Bulgarian National Revenue Agency.

Benefits of Starting a Business in Bulgaria

UK founders often choose Bulgaria for its EU base. It offers stable rules, a skilled workforce, and low costs. This makes it easy to start and grow a business without spending too much.

Strategic Location

Bulgaria’s location is perfect for expanding into different areas. It connects Europe, the Middle East, and Asia, making it great for trade and management.

Sofia is a key spot for trade between East and West Europe. It has good transport links, making supply chains reliable and easier to plan.

Low Operational Costs

Starting a business in Bulgaria is affordable. Labour costs are low, and everyday expenses are cheaper than in Western Europe.

Office rent in Sofia is very low, saving money for other important areas like product development and hiring. Costs for services like accounting and staffing are also 30–50% lower than in Western Europe.

Despite the low costs, Bulgaria doesn’t lack skilled workers. It produces many IT graduates each year. This helps tech companies grow confidently.

EU Membership Advantages

Being part of the EU opens up new markets and opportunities. Bulgaria’s EU membership means easier trade with other member states.

EU rules also protect consumers, which can build trust with partners and customers. There might be EU funding for investment, innovation, and growth plans.

Taxes are also more manageable thanks to Bulgaria’s double tax treaties. This helps with cross-border trading and income, supporting businesses that serve Europe.

Choosing the Right Location

Your base choice affects costs, hiring, and reaching customers quickly. When picking a spot in Bulgaria, think about transport, workspace, and who’s nearby.

Plan ahead for a Bulgarian registered office address. It’s not just a formality. It must match your business and local laws.

Major Cities for Business

Sofia is often the top choice for many founders. It’s great for East–West access and supports sales and supplier meetings.

Sofia is also good for hiring, especially in IT and shared services. Rent is competitive for a European capital. This keeps costs steady while you test the market.

If you rely on freight, routes, or fulfilment, look at logistics in Bulgaria. Areas with fast motorways and reliable cross-border access are key.

Regional Considerations

Choosing a regional location in Bulgaria can save costs, get you closer to production partners, and access a local workforce. The right spot can cut lead times and boost service quality.

Start with a compliant Bulgarian registered office address, then grow into premises as needed. Many teams start with virtual offices to stay lean in the early stages.

Check zoning and licensing fit before committing to a lease, especially for regulated or customer-facing work.
Allow time for filings if you change address details, as updates can trigger extra administrative steps.
Keep address records consistent across contracts, banks, and registers to reduce compliance friction.

When you weigh costs, talent, and travel time, it’s easier to see where to set up in Bulgaria. Align your city choice with your business plan and logistics needs.

Navigating Bulgarian Employment Law

When UK founders expand, a wholly owned Bulgarian company offers more control. It lets you manage teams, set processes, and plan costs under Bulgarian employment law. You also get to make day-to-day decisions.

Hiring Employees

Timing is as important as salary when hiring employees in Bulgaria. Make sure to register for social security and set up payroll within seven days of hiring.

We see workforce compliance as a real cost, not just admin. Social security rates, paid holiday rules, and updates can impact budgets and staffing plans, especially in the first year.

Register employment and complete social security registration Bulgaria within seven days
Set up payroll compliance Bulgaria from day one, including required reporting and filings
Budget for statutory leave and internal HR record keeping

Contracts and Obligations

Employment contracts must follow Bulgarian labour law on role, working time, notice, and leave. Pay levels should also reflect statutory thresholds, including minimum wage Bulgaria 2025 BGN 1077. This affects contributions and payroll settings.

Monthly payroll needs correct withholding, including 10% personal income tax, plus social contributions. Employer contributions are around 18.92–19.62% of gross salary. Employee contributions are about 13.78%, with combined rates around 32.7–33.4%.

For payroll compliance Bulgaria, remittances are due by the 25th day of the following month. Getting these dates and figures right protects cash flow and reduces errors.

Non-compliance is not a theoretical risk. Breaches of Bulgarian employment law can trigger inspections and fines up to EUR 10,226. We favour clear HR processes, accurate records, and local guidance that keeps pace with changing rules.

Banking and Financial Services

Starting a new company in Bulgaria can be tricky with banking. We guide you through it. This way, managing money, reports, and payments is easy from the start.

Setting Up a Business Bank Account

To open a business bank account in Bulgaria, you need it for two main things. First, to put in the initial share capital. Second, to keep business and personal money separate. Many founders start with a capital account and then switch to a full corporate account once checks are done.

Most banks want a detailed document pack. They might ask for originals or certified copies for KYC. It’s wise to prepare these early to avoid delays.

Certificate of incorporation or registration from the Bulgarian Commercial Register
Articles of association or foundation documents
Proof of address for the company and each director or manager
Valid ID documents for each director, manager, and beneficial owner

Some banks also need affidavits under Article 13(4) of the Commercial Register and Non-Profit Legal Entities Act. For foreign-owned firms, they might ask for a business plan, details on funds, and tax compliance.

For everyday use, online banking and tools for different currencies are key. Many Bulgarian banks support euro payments, which is useful for EU customers and suppliers.

Access to Loans and Credit

Credit decisions in Bulgaria are based on relationships and solid evidence. Good bookkeeping, timely reports, and following Bulgarian Accounting Standards are crucial. They show a bank how risky or safe your business is.

A solid plan is also important, especially for new or international businesses. Banks might look at your sales forecast, contracts, and how you handle money after opening a bank account in Bulgaria.

For businesses with international sales, a Wise Business account can be helpful. It’s not a bank but can make cross-border payments easier. It offers online setup, local account details, and works with QuickBooks, Xero, and Sage.

Used correctly, this combination can make things smoother. The bank handles the core lending and local services. Meanwhile, a Wise Business account simplifies international payments, collections, and reconciliations.

Investment Opportunities in Bulgaria

For UK founders and investors, Bulgaria is a great base for EU trade and operations. It has clear rules, a simple tax system, and easy company ownership. This makes it a good choice for foreign investment.

Foreign Direct Investment (FDI)

FDI in Bulgaria is appealing because you can own 100% of shares. You don’t need a local partner. And, you can manage a company without living in Bulgaria, as long as you have a manager who is a person.

The tax rate is 10% in Bulgaria. Plus, there are double tax treaties with over 70 countries. These can help with cross-border trading and investments in Bulgarian companies.

Full foreign ownership for most standard structures
Stable corporate tax at 10% for budgeting and forecasting
Treaty network that can reduce double taxation risk in some cases

Support for Start-ups

Starting a business in Bulgaria is easy and cheap. You only need BGN 2 to start an OOD. And, you can file documents online, which is part of Bulgaria’s support for start-ups.

Being in the EU adds credibility as you grow. EU grants can support innovation, training, and equipment. This can help your funding plan.

Start with a clear use of funds and a realistic hiring plan
Check whether your activity fits typical EU funding criteria and reporting duties
Align banking, accounting, and compliance early to keep growth smooth

Business Culture in Bulgaria

In Bulgaria, business culture values patience, clear planning, and steady effort. For UK founders, building trust is as important as paperwork. This is crucial when waiting for approvals and stamps.

We adjust our plans to fit the local pace. This keeps your launch schedule realistic. Aligning expectations with banks, suppliers, and authorities helps daily operations run smoothly.

Networking and Relationships

Networking in Bulgaria works best when it’s consistent and focused. Meetings should have a clear goal but also allow for building rapport and follow-up.

Building relationships in Bulgaria is a continuous effort. A good introduction, quick replies, and being on time are valued across different sectors.

Confirm next steps in writing after meetings to avoid mixed expectations.
Allow extra time for certifications, compliance checks, and document reviews.
Keep key contacts warm with short updates rather than rare, long messages.

Communication Styles

Daily work and official filings often happen in Bulgarian. Using the Bulgarian language in business can make meetings and contracts smoother.

We recommend having a bilingual contact and professional translation for important documents. While translation tools are useful, they can’t replace certified translations for legal matters.

In Bulgarian business culture, small gestures matter. Learning basic greetings and polite phrases can ease first interactions. It supports networking without requiring a deep language knowledge.

Marketing Your Business in Bulgaria

Good marketing is key to a smooth entry into Bulgaria. It must fit the local scene. We guide you in setting priorities, picking channels, and crafting messages for both Bulgarian and EU markets. This groundwork also helps solidify your brand in Bulgaria, making it clear to customers what you offer and why it’s important.

Digital Marketing Channels

Digital marketing in Bulgaria is a good fit for many founders. The country’s strong ties to cross-border trade and tech services make it ideal. We begin by understanding the buyer’s journey. Then, we create a tailored go-to-market strategy that aligns with your offerings, pricing, and sales cycle.

Localised marketing in Bulgaria starts with the basics: website content, terms, and product explanations. This is crucial for regulated or contract-heavy services, where accuracy in wording is paramount.

Search and content focused on intent, not just traffic volume
Paid campaigns with clear landing pages and measurable actions
Analytics and reporting that ties leads to revenue outcomes
Payment flow checks, including Wise Business for cross-border receipts and reconciliations through QuickBooks, Xero, or Sage

Traditional Marketing Strategies

In many B2B sectors, building relationships is key to demand. We support your branding in Bulgaria through practical interactions like meetings, trade networks, and referrals. This is especially true in logistics, trade, and professional services.

We also ensure your go-to-market plan in Bulgaria aligns with your operational capabilities. If your sector requires permits or licenses, your marketing materials must reflect your authorisation in both English and Bulgarian.

Partner shortlists and introduction routes that fit your industry
Simple printed collateral that mirrors your digital message
Document packs that make procurement and onboarding easier

When digital and offline marketing tell the same story, entering the Bulgarian market feels more controlled. Localised marketing in Bulgaria then becomes a regular practice, not just a one-time translation task.

Utilising Professional Services

Expanding into Bulgaria can seem simple at first. But, the first rejection can be a shock. We use company formation support to guide you through each step. This way, you can focus on trading, not paperwork.

Small mistakes can cause big delays. With the right team, you avoid these risks. You start with a clear audit trail from day one.

Accountancy and Legal Advice

Incorporation needs lots of paperwork and careful language. Bulgarian legal support helps with notarisation and translations. They ensure everything is filed correctly with the Registry Agency.

After your company is set up, there’s a lot to do. Bulgarian accountants help with financial statements and keeping records. They make sure everything is up to date.

Good bookkeeping is more than just invoices. It includes payroll, HR, and transaction records. We keep these records for at least five years.

We keep up with your reporting needs. This includes updates on directors, addresses, and shareholdings. This way, you never miss a deadline.

Consulting Services

Getting advice early can save a lot of time. We help you choose the right company structure. This depends on control, funding, and how you plan to operate.

Early tax planning is also key. We look at VAT rules, including the BGN 100,000 threshold. This way, you’re ready for invoicing and contracts.

Build a compliance calendar for filings, renewals, and internal approvals
Prepare for bank KYC checks with consistent corporate documents and source-of-funds evidence
Account for employment obligations that can slow onboarding if contracts and policies are late

When things get slow, we bring in specialists. This keeps everything moving smoothly. Your legal and accounting support stay on track as your business grows.

Understanding Bulgarian Consumer Behaviour

Before we start campaigns, we look at how people buy and decide. We study consumer behaviour in Bulgaria, focusing on what works, not just trends. Our research helps shape our plans, keeping them realistic.

We also check practical things early. Can we offer customer support in Bulgarian? Do we need permits before we promote? These checks help us avoid wasting money or causing delays.

Market Research Techniques

We mix desk research with field signals and fast tests. Our goal is to keep our forecasts reliable, including VAT’s impact on prices.

Category sizing, competitor mapping, and share-of-voice reviews using public data
Customer interviews and short surveys to spot objections and buying triggers
Pilot offers that validate demand Bulgaria through real enquiries, orders, or bookings
Pricing tests that reflect VAT and payment habits, not just list prices

We update our business plan with these findings. Clear projections help with registration and special permissions, showing we’re ready.

Identifying Target Audiences

After spotting patterns, we group audiences by need and channel. In Bulgaria, there are trade buyers who value location and digital buyers who want fast service. We match each group with the right offer and marketing channel.

We also consider operations to ensure growth is realistic. Banking, VAT, and employment rules affect how we onboard clients and staff. Aligning these with our research gives us a clear view of who will respond.

Challenges Faced by Entrepreneurs

Even with a clear plan, founders can face unexpected delays. Bulgarian bureaucracy often slows down simple tasks. This can affect timelines, cash flow, and business risks in Bulgaria.

Bureaucratic Hurdles

Administration moves at its own pace. Banks may do detailed KYC checks before opening accounts. This means you need certified paperwork, a solid business plan, and Bulgarian language documents.

If anything is missing, the process starts over. Day-to-day, staying accurate and up to date is crucial. For business compliance in Bulgaria, we treat these tasks as essential:

Keeping a compliant registered address and managing incoming notices
Updating corporate records when shareholders, managers, or activities change
Meeting payroll, tax, and social security deadlines without drift

Hiring also brings risks. Labour law fines in Bulgaria can be as high as EUR 10,226. Contracts, working time records, and proper onboarding are as important as pay. We plan HR admin early to avoid compliance gaps.

Economic Fluctuations

Planning must also account for change. With a GDP growth forecast of 2.7% for 2024, the outlook seems steady. Yet, costs can still vary. Social contributions, reporting duties, and sector-specific rules can change, adding to business risks in Bulgaria.

We also prepare for wage and budget updates. The minimum wage is set to be BGN 1,077 from 2025. To maintain business compliance in Bulgaria, we use buffers in budgets and timelines. We also have a simple compliance calendar to track renewals, filings, and bank requests tied to Bulgarian language documents.

Exit Strategies for Businesses

Planning early keeps control in your hands. A clear exit strategy Bulgaria starts with the entity you chose and the records you keep. For many SMEs, an OOD/EOOD can be easier to manage, while an AD can suit larger deals and wider ownership.

We also treat governance as a deal asset. Clean shareholder and beneficial owner registers, signed minutes, and up-to-date accounts help buyers move faster. They also cut the risk of price reductions during checks.

Selling the Business

When you aim to sell a Bulgarian company, structure matters. An AD may support smoother capital raising and share movements, while an OOD/EOOD often keeps decision-making simple. Either way, the transaction is easier when responsibilities and approvals are written down.

Many sales rely on how you transfer shares Bulgaria in a compliant way. We look at the company’s articles, management powers, and any pre-emption rights, so the handover is not delayed. We also prepare for due diligence, including contracts, staff files, licences, and IP.

Tax can change the net result. Distributed profits may attract a 5% dividend tax, and treaty relief can matter when owners are non-resident across 70+ countries. We align the deal steps with practical timing, so you know what cash is likely to land and when.

Verified registers of shareholders and beneficial owners
Clear governance documents and decision trail
Accounts that match filings and bank activity

Liquidation Processes

Sometimes the right option is liquidation Bulgaria rather than a sale. This is a compliance-led route with formal steps, not a quick switch-off. Clean bookkeeping and orderly submissions keep the process steady.

To close a company Bulgaria, we plan for filings with the Registry Agency and updates with the NRA. We also factor in the administrative cadence and Bulgarian-language documents, which can slow timelines if left late. Key records should be kept for at least five years, even after trading stops.

Settle liabilities and reconcile accounts before filings
Complete the required notices, submissions, and registry updates
Retain core records and evidence for the statutory period

Conclusion and Next Steps

Starting a business in Bulgaria is a wise choice for UK entrepreneurs. But, success comes from a well-thought-out plan. You need to pick the right business type, understand taxes, and set up banking and bookkeeping early on. This way, growth is steady and stress-free.

Start Company Formations helps you choose the best structure for your business. We assist with OOD/EOOD, AD, or branch setups. We handle document preparation, translation, and notarisation, and secure a compliant address. We also help with banking, VAT, and bookkeeping.

If you’re planning to move or stay long-term, we can help with immigration. We also support regulated businesses, like Gaming Licences and FX & Crypto Licensing Companies.

Contact Start Company Formations

Ready to start? Talk to Start Company Formations. We’ll create a realistic plan, including costs and compliance steps. We cover everything from incorporation to employer duties.

Call Us at 0204 504 1544

Need practical advice and quick action? Call 0204 504 1544. We’ll guide you through the first steps, parallel tasks, and essential preparations for trading.