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As accountants, we hear this weekly: can a non-EU citizen own a Bulgarian company outright? The short answer is yes. The useful answer is how to structure it so banks, tax authorities, and partners say “yes” as well. Below is a step-by-step breakdown you can actually use.
Can Non-EU Citizens Own 100% of a Bulgarian Company? | 2025 Guide
Non-EU citizens can own 100% of a Bulgarian limited company (EOOD for a sole owner or OOD with partners). No local partner is required. Directors can also be non-EU citizens. Sector-specific licenses may apply only for regulated activities (e.g., finance, healthcare, security).
Company Formation: What You Need
- Capital: minimum 2 BGN.
- Registered office address in Bulgaria.
- Company name check and drafting of Articles of Association.
- Manager appointment (can be the foreign owner).
- Ultimate Beneficial Owner (UBO) declaration and initial filings at the Commercial Register.
- Documents from abroad must be notarised and, where applicable, apostilled/legalised and translated into Bulgarian by a sworn translator.
- Power of Attorney allows remote incorporation if you cannot travel.
Registration at the Commercial Register is typically completed within a few business days after submission, assuming the file is complete and translations are in order.
The Real Bottleneck: Banking
Incorporation is easy. Opening a corporate bank account can be hard without a local footprint. Bulgarian banks follow strict EU AML and compliance rules and will assess:
- Sanctions/PEP checks and source of funds.
- Real economic presence in Bulgaria or the EU (clients, suppliers, staff, office, website).
- Business model and risk profile (industry, countries, volumes, payment flows).
Expect in-person KYC, detailed questionnaires, and possible follow-ups. A declination usually reflects missing proof of activity—fixable with better documentation.
What to Prepare Before You Approach a Bank
- Business plan with products/services, target markets, and expected payment flows.
- Commercial evidence: draft/actual contracts, pro-forma invoices, letters of intent, supplier quotes.
- Substance: office lease or virtual office agreement, Bulgarian phone number, website, and local accounting engagement letter.
- KYC pack for owners/directors: passports, proof of address, CV/LinkedIn profile, tax numbers, recent bank statements.
- Source of funds: documents showing how initial capital and operating funds are derived.
Practical Table: Formation vs. Banking
| Area | What is Required | Common Pitfalls |
|---|---|---|
| Formation | 2 BGN capital, address, Articles, manager, UBO filing, translations/apostille where needed | Missing translations; incomplete UBO data; no PoA for remote setup |
| Bank Account | KYC, source of funds, contracts, substance, risk assessment | No proof of activity; high-risk geographies; unclear payment flows |
Alternatives and Interim Solutions
While working toward a local bank account, many non-EU owners start with an EU-licensed fintech that issues IBANs and supports card acquiring. This is not always a permanent solution, but it can bridge the first months. Always confirm your counterparties and marketplaces accept your chosen provider.
Taxes and Ongoing Compliance at a Glance
- Corporate income tax: 10%.
- Personal income tax: flat 10% (relevant for Bulgarian tax residents).
- Dividends: typically 5% Bulgarian withholding tax to foreign individuals (treaties may change this).
- VAT: standard 20%; register if you exceed the Bulgarian threshold for taxable supplies or if rules require earlier registration (e.g., certain cross-border activities).
- Accounting: monthly bookkeeping; annual financial statements and corporate tax return; keep statutory registers current (UBO, management, address).
- Employment: hiring triggers payroll, social security, and HR compliance.
Ownership vs. Immigration
Owning a company does not grant a right to live or work in Bulgaria. Residence and work permits are separate processes. Plan immigration and tax residency early to avoid gaps.
Real-World Scenarios
- E-commerce startup (EOOD): single owner outside the EU. Registers the company remotely with a notarised PoA, signs an accounting contract, secures supplier terms, and uses an EU fintech while building proof for a local bank.
- IT consultancy (OOD): two owners, one non-EU. The Bulgarian client contract and an office lease help the bank approve a standard corporate account.
- Trading company (EOOD): non-EU owner with suppliers in the EU. Detailed logistics map and insurance policies address bank risk concerns during onboarding.
Non-EU citizens can own 100% of a Bulgarian company. Registration is fast and inexpensive. Success with banking depends on documentation and substance. With a clear file and the right sequencing, approval rates improve dramatically.
Launch your 100%-owned Bulgarian company with confidence. We align formation, banking onboarding, and VAT/OSS so you can invoice EU clients from day one. Get a practical plan with documents, timelines, and steps that banks understand. Contact us today!