Starting a business in Bulgaria is a straightforward and cost-effective process, making the country an attractive destination for entrepreneurs, startups, and international investors looking to enter the European Union. With low taxes, fast incorporation, and EU-aligned legislation, Bulgaria is particularly suitable for service companies, IT businesses, e-commerce, consulting, and holding structures.
1. Choosing the Right Legal Form
The most commonly used structure is the Limited Liability Company (OOD / EOOD), which offers flexibility, limited liability, and minimal capital requirements. Other options include Joint-Stock Companies (AD) for larger businesses and Variable Capital Companies (DPK) for startups seeking flexible capital arrangements.
2. Company Name and Registered Address
Your company must have a unique name approved by the Bulgarian Commercial Register and a registered address in Bulgaria. This address is used for official correspondence and compliance purposes.
3. Share Capital and Ownership
The minimum share capital for an OOD/EOOD is symbolic (EUR 1), making entry accessible even for small founders. Shareholders can be Bulgarian or foreign individuals or companies, with no restrictions on foreign ownership.
4. Management and Representation
A company is managed by one or more directors, who may be foreign nationals. Directors can manage the company remotely, and powers of attorney can be used when physical presence is not practical.
5. Incorporation and Registration
Company registration is completed through the Bulgarian Commercial Register. Once submitted, incorporation is typically finalized within a few working days, after which the company becomes fully operational.
6. Taxation and VAT
Bulgaria applies a flat 10% corporate income tax and 5% dividend tax, among the lowest in the EU. VAT registration becomes mandatory once the statutory turnover threshold is reached, with optional early registration in certain cross-border scenarios.
7. Banking and Compliance
For LLC (OOD / EOOD) and JSC (AD):
An initial capital bank account must be opened prior to incorporation in order to deposit the initial capital required for registration with the Commercial Register.
For Variable Capital Companies (VCC / DPK):
The business bank account and capital setup are completed after incorporation, as no upfront capital deposit is required at the registration stage.
After incorporation, all company types must set up accounting, tax compliance, and ongoing reporting in accordance with Bulgarian law.
8. Operating Across the EU
Once registered, a Bulgarian company can freely provide services and trade across the EU, benefiting from the Single Market while maintaining low operating costs at home.
Why Use Professional Legal Assistance
While the process is business-friendly, professional legal support ensures correct structuring, tax efficiency, and full compliance from day one—especially for foreign founders unfamiliar with local rules.
Our Shopify legal services cover the entire process: company incorporation, registered address, director appointments, VAT guidance, and ongoing legal support—so you can focus on growing your business while we handle the legal foundation.