Frequently Asked Questions
The answers to the most frequently asked questions about starting a business in Bulgaria are provided here.
Contact us using the form below if you can’t find what you’re looking for, and we’ll get more information back!
- What is a LTD / EOOD?
LTD (also LLC or OOD) means a Limited liability company. That is the most suitable way of business organization for small and medium businesses. Your Ltd company is easy to manage with low cost for operation.
Bulgarian limited liability companies of EOOD and LTD are exactly the same to the outside world and all third parties dealing with them. The only difference is the number of equity stakeholders.
EOOD is a limited liability commercial entity with only one (sole) limited stakeholder.
OOD is a limited liability company consisting of two or more limited stakeholders.
- Who can register a company in Bulgaria?
Any foreign or legal entity is allowed to be the owner or shares of a Bulgarian company. The company can have one shareholder (sole owned, EOOD) or more shareholders (no limitation for the number, LTD). It is not needed for a Bulgarian citizen to appear as a shareholder or manager of the company.
- How much does the registration cost?
Contact us to discuss the cost of service, which is one time only – including all fees and expenses related to the registration of a LTD company. Following we can manage operational services – legal corporate obligations or the company on your behalf – they depend on the number of handling per month.
- Do I need a company’s address in Bulgaria?
Yes, you need an address in Bulgaria as an official company address. We can also provide you with a company’s address (virtual office), linked to services. It will be used to receive any official correspondence for the LTD from the official authorities to that address. We will resend them to you with explanation.
- What is the minimum capital of the company?
The minimum nominal capital of the company is 2 BGN that is about 1 EUR (equal to 1.95583 BGN). The capital is divided into shares with minimum amount or 1 BGN each. Higher capitals are perceived as more serious, so we advise our clients to create a company with nominal capital of 500 BGN / 250 Euro.
- How long does it take to register a company?
You will have your company registered in 3-5 working days.
- Does my company need a VAT registration to operate outside of Bulgaria?
Once your company is registered in the Commercial Registry it has no VAT registration and can only operate in Bulgaria. If you need to invoice foreign companies a VAT (VIES) registration shall be needed. It takes about 2-3 weeks after all documents are signed to receive the VAT number.
- Will I need special permits or licenses for my new company in Bulgaria?
There are industries that require applying for special licenses or permits. For detailed information you can contact us.
- What is the Taxation in Bulgaria?
Corporate tax or 10%. Dividend tax or 5%. Withholding tax or 10% or 5%. VAT or 20%, separately from tourism.
- What kind of businesses can benefit from starting up a company in Bulgaria?
Setting up a company in Bulgaria is suitable for various business models operating in different fields and looking for cost reduction and new opportunities on the international market.