How to Start or Buy a Business in Bulgaria

Foreign residents and property owners sometimes consider starting or buying a business in Bulgaria. This guide outlines the main decisions and registration steps, but company, tax and filing rules must be checked for the current year.

This guide covers:

1. Common business sectors in Bulgaria.

2. Buying an existing company versus starting from scratch.

3. The main company-registration steps.

4. Typical documents for an EOOD or OOD.

5. General tax headings and the need to verify current rates.

6. Annual filing obligations.

Which Business Sectors Are Common in Bulgaria?

No sector is automatically profitable. Common areas for small and foreign-owned businesses include:

• Tourism and hospitality;
• Property renovation and furnishing services;
• Beauty and personal-care services;
• IT and digital services;
• Food and beverage businesses.

Buy an Existing Business or Start from Scratch?

Both options have advantages and disadvantages. Let's consider them.

Main Steps to Register a Business in Bulgaria

Step 1 — Choose a Company Name

Check the name in the Commercial Register. Reservation is optional in some cases, and the fee depends on the current filing method.

Step 2 — Choose the Legal Form

Choose the legal form with advice on liability, ownership, tax and accounting consequences.

Step 3 — Prepare the Documents

Prepare the incorporation documents, appoint the manager, determine the share capital, pay the filing fee and submit the application to the Registry Agency.

Step 4 — Set the Registered Address

A suitable address may be used if the company has a lawful basis to receive official correspondence there.

Step 5 — Deposit the Share Capital

The bank may open a capital-raising account. Funds are handled under the bank and registration rules until incorporation is complete.

b>Step 6 — Register the Company in the Commercial Register

Step 7 — Complete Tax and Accounting Setup

VAT registration is not automatic for every company and is not guaranteed within a fixed number of days. Eligibility, compulsory thresholds and documents must be checked with the National Revenue Agency.

Use the Registry Agency, National Revenue Agency and Invest Bulgaria Agency websites for current official information.

Typical Documents for an EOOD or OOD

For a single-member EOOD, the filing package commonly includes:

• Commercial Register Form A4;
• The sole shareholder's incorporation decision;
• The articles of association;
• The manager's consent, declarations and signature specimen;
• Proof of the filing fee and deposited share capital;
• The statutory declarations required for the application.

For a multi-member OOD, the package commonly includes:

• Commercial Register Form A4;
• The company agreement;
• Minutes or resolution of the founders;
• The manager's consent, declarations and signature specimen;
• The manager's declarations under the applicable Commercial Act provisions;
• Receipt of payment of state duty;
• The required declaration on the accuracy of filed documents;
• Bank evidence of the deposited share capital.

Tax Headings in Bulgaria

• Corporate income tax is generally 10%, subject to current law.
• The standard VAT rate is generally 20%, with separate registration and reduced-rate rules.
• Personal income tax is generally 10%, with exceptions and final withholding taxes.
• Dividend withholding is commonly 5%, subject to the recipient and any tax treaty.

Annual Filing Obligations

Companies may need annual financial statements, a corporate tax return and statistical reporting. Requirements and deadlines depend on activity, size and the relevant year.

1) Annual financial report. File the applicable financial statements or inactivity declaration by the current Commercial Register deadline. Historical fines on this page are not reliable.

2) Tax Declaration must be filed under the current National Revenue Agency deadline. Do not rely on the old 31 March date or fine amounts.

3) Annual report on activities. Statistical reporting requirements and deadlines should be confirmed with the National Statistical Institute and accountant.

Inactive Companies have separate declaration and publication rules.

Do not assume that an inactive company has no obligations. Confirm the current inactivity, tax, accounting and beneficial-owner filings.

The cited 2017 State Gazette notice is historical; use current legislation and professional accounting advice.