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Company Registration in Bulgaria – Step-by-Step Guide for Foreigners (EOOD & OOD)
Welcome to ASB Accounting Services Bulgaria – your trusted partner for accounting, tax, and business services in Bulgaria. In this guide, we will explain how company registration works in Bulgaria and clarify common misconceptions that foreign entrepreneurs often encounter.
Who Can Register a Company in Bulgaria?
Both EU and non-EU citizens are eligible to own 100% of a Bulgarian company. You do not need to reside in Bulgaria to be a shareholder or a manager. The most common company types for foreign founders are:
- EOOD – A limited liability company with a single owner.
- OOD – A limited liability company with multiple shareholders.
Both structures provide limited liability and are subject to identical tax treatment under Bulgarian law.
Choosing the Correct Company Structure
When deciding between EOOD and OOD, consider the following:
- EOOD – Ideal for solo entrepreneurs who want full ownership of their business.
- OOD – Suitable for businesses with two or more shareholders.
Both company types limit the owners’ liability, meaning that their personal assets are protected in case of business debts or legal issues. The tax treatment for both structures is identical under Bulgarian law, so the choice depends on whether you want a single-owner or a multi-shareholder structure.
Company Documents and Language Requirements
All incorporation documents must be submitted in Bulgarian to the authorities. However, it is acceptable to prepare bilingual documents, such as Bulgarian and English, for your own convenience. Please note that the Bulgarian version is always the legally binding one.
Opening a Capital Accumulation Bank Account
Before you can officially register your company, you must open a capital accumulation (bank) account. Here’s what you need to do:
- Deposit the required share capital into the account.
- Obtain a bank document confirming the deposit, which is a mandatory document for registration.
Once the capital is deposited and the documents are prepared, you can proceed to the next step: company registration.
Registering with the Bulgarian Commercial Register
The registration process can only begin once the capital is deposited, and the director’s signature is notarized. After completing these steps, you can submit the application to the Bulgarian Commercial Register. The registration typically takes between 1 and 3 working days. Once the company is registered, it will receive a Unified Identification Code (UIC), which is crucial for tax and legal purposes.
VAT Registration Considerations
At this stage, you must consider VAT registration. Here’s what you should know:
- If VAT registration is mandatory from the start, you must register accordingly.
- If not mandatory, you can either choose voluntary registration or wait until your business reaches the statutory threshold for VAT registration.
Incorrect timing for VAT registration is a common compliance issue among foreign-owned companies. Be sure to consult with a professional to determine the correct timing for your business.
Common Mistakes to Avoid
To ensure a smooth company registration process, avoid these common mistakes:
- Assuming company registration can be completed before opening a bank account.
- Ignoring the requirement for Bulgarian-language legal documents.
- Registering a company without understanding tax, VAT, and ongoing compliance obligations.
- Delaying accounting setup, which may lead to penalties and corrective procedures later.
If you are planning to register a company in Bulgaria, accuracy and correct sequencing are critical. Professional guidance can help you avoid delays, refusals, and costly mistakes. By working with experienced professionals, you ensure your business is set up correctly from the start, minimizing future complications.
Contact Us for Expert Assistance
If you need help with company registration in Bulgaria, our team at ASB Accounting Services is here to assist you. Contact us today to get personalized guidance and ensure a smooth registration process for your business.
This content provides general information and does not constitute tax, accounting, or legal advice. Each situation is different and should be reviewed individually. Please consult with a professional before taking any action.