Bulgaria, a country in the Southeast of Europe is becoming a popular spot for budding entrepreneurs.
However, before you dive headfirst into starting a business in Bulgaria, it’s important to know what you’re getting yourself in for. In this guide, we’ll break down everything for you – including taxes, costs and how to go about registering.
Why Is Bulgaria A Good Place To Start A Business?
Location and Economy
According to Emerging Europe, Bulgaria’s economy has shown good growth, with forecasts predicting 2.9% growth in 2025. Not only that, but the country’s location on the edge of Europe, means it not only provides good access to Europe, but the Middle East, North Africa and Asia too.
Low Taxes
With a 10% flat rate for corporate income tax and a 5% flat rate for dividend tax, Bulgaria has one of the lowest tax rates in Europe.
Low Costs
Unlike other countries across Europe, Bulgaria has low wages, meaning that hiring people is affordable. With a low cost of living and rental prices, it also means costs like renting an office and moving abroad are more economical than other European countries.
What To Consider Before Moving To Bulgaria
Cost of Living
Bulgaria has a low cost of living compared to other European countries, making it an affordable base for aspiring business owners. Renting a one bedroom apartment in Sofia is around €550 according to the Global Property Guide, compared to over €1,000 in other countries.
These low costs can help, especially in the beginning stages of starting up a company.
Language
While many Bulgarians do speak English, all business and legal documents will have to be translated to Bulgarian. Whilst translators can help with written documents, it’s a good idea to have some basic level of speaking, especially if you plan to hire employees or network.
Visas
Depending on your country of citizenship, you might need a visa to get started.
EU Nationals can live and work in Bulgaria with no visa needed.
Non-EU Nationals will have to get a Type C or D visa, depending on their business type and how long they decide to stay. If you are looking to move for a long period of time, you’ll need to apply for residency too.
How To Start A Business in Bulgaria
Step 1: Choose Your Business Structure
The type of business structure you choose will depend on the size, capital and goals of your business. The most common structures are:
Limited Liability Companies (LLC): This is the most common type of business in Bulgaria because it’s easy to set up and doesn’t require you to invest a lot of capital. There are two versions, which both only require about €1 of share capital to set up:
- Single-member LLC (EOOD): Good for one person businesses.
- Multi-member LLC (OOD): Good for businesses with two of more shareholders.
Joint Stock Companies (JSC/AD): Good for larger businesses that plan to sell shares. It requires a minimum capital of 50,000 BGN (€25,500) and must have at least 3 people on the board.
General and Limited Partnerships: For businesses between two or more people.
Sole Ownership (ET): For independent business owners who want to run the business alone. Almost like a sole trader.
Branch: If the parent company is already established in another country, you can open a branch in Bulgaria. Businesses operating in this way have to operate in a similar way to an LLC but is linked to the business abroad.
Step 2: Choose A Company Name
Once you’ve figured out the structure of your company, you’ll need to register it. To do this, you’ll need to choose your company name, as well as 2 alternatives in case of any clashes.
Once you have the names, register them at the Bulgarian Commercial Register. You’ll need all your documents to do this, so make sure you have everything in order (and translated!) before you do. Once it is registered, you will get a tax number which you can use on all business transactions.
Step 3: Open A Bank Account
All companies in Bulgaria need to have a local bank account to handle business payments. This account will also need to hold your capital requirement if you are opening a business structure that needs one.
Step 4: Draft All Business Documents
You’ll need to make sure you have all the documents ready to get the company set up. These include a Certificate of Incorporation, a Memorandum and Articles of Association, a Declaration of the Shareholders, a Power of Attorney (if applicable) and notarised signatures from all shareholders. (Source: SofiaOffices)
It’s worth noting that all documents will need to be translated into Bulgarian Cyrillic, so make sure you include translation fees in your budget.
Step 5: Register with the Bulgarian Commercial Register
Once you have all the documents ready, you can register them at The Bulgarian Commercial Register. It usually takes 3–7 working days for them to be processed.
The Cost Of Setting Up A Business In Bulgaria
As part of the process, you’ll need to set aside some cash for all the administration. Costs include:
- State Registration Fees: 55–110 BGN (€28–56) for online registration.
- Bank Account Setup: Around €100.
- Legal and Notary Fees: €400–€800 depending on what you need.
- Minimum Share Capital: 2 BGN for LLC, 50,000 BGN for JSC.
- Translation: TBC (if needed)
Hiring Employees In Bulgaria: What Do You Need To Know?
If you are planning to hire employees as part of your business plan, you’ll need to get to know local employment laws. The standard work week in Bulgaria is 40 hours, with each employee being entitled to 20 days of annual leave.
When it comes to pay, the minimum wage is €311.89.
Starting A Business In Bulgaria
Starting a business in Bulgaria can be a great move for entrepreneurs that want low taxes, affordable costs and access to the EU. With low costs for starting up and running companies, Bulgaria is a great place for business owners.
With the right planning, you can make sure you have everything you need to set up a business in Bulgaria. Good luck!
