Opening a Company in Bulgaria as a Foreigner
More and more often, we receive inquiries regarding the process for foreigners to open a company in Bulgaria. This article aims to clarify the procedure, including which foreigners can register businesses, residency requirements, costs, and more. for Registering a Company in Bulgaria
Here’s a video from our partner for T8G where it’s explained in details all the information that you need it.
When considering the registration of a company in Bulgaria, it’s important to understand specific legal and procedural requirements that apply to non-Bulgarians. Below are the primary advantages:
Social Benefits
- Many non-EU foreigners register companies to establish residency in Bulgaria.
- For example, a foreigner from the Middle East may register a company remotely, enabling them to legally live and conduct business in Bulgaria.
Economic Benefits
- Bulgaria’s low taxes are significantly lower than those in many Western EU countries, attracting foreign businesses.
- Affordable accounting services are available in Bulgaria, making it economically beneficial for companies.
- Low salary expectations compared to Western Europe encourage large corporations to relocate production to Bulgaria.
Who Can Register a Company?
- All foreign nationals, regardless of their citizenship status (EU or non-EU), can register businesses in Bulgaria.
- Residency in Bulgaria is not a requirement, nor is a command of the Bulgarian language necessary; bilingual documentation is recommended.
Steps for Company Registration
- Open an Accumulation Account: This is the first step in registering a company.
- Prepare Required Documents: The documents need to be submitted to the Commercial Register. The minimum capital for registering a Limited Liability Company (Ltd.) is BGN 2.
Opening a company by a foreigner, as well as in any registration of a company is to open the so-called accumulation account. You can read more HERE.
Important Considerations
- Recent amendments to Anti-Money Laundering laws have made it increasingly difficult for foreign companies to open fundraising accounts, particularly for non-EU nationals.
- The registration process is similar for foreigners and Bulgarian citizens, with no personal liability for company obligations.
Document Requirements
When registering a company, it’s critical that the foreigner understands the documents they are signing. There are two primary options for documentation:
- Translation Requirement:
- Documents should be translated into the foreigner’s native language or another language they understand. A bilingual version must be provided.
- If the translation is not done by a sworn translator, the person who translates must certify accuracy and sign.
- Declaration of Understanding:
- If documents are not translated, a person familiar with the relevant language must declare that they have translated the contents correctly. Both the foreigner and the translator must sign this declaration in front of a notary.
Additionally, the foreigner’s name must be recorded in Cyrillic.
Remote Company Registration
Yes, foreigners can register companies in Bulgaria without being physically present. The following steps should be followed:
- Have the necessary documents notarized in the foreigner’s home country. Bulgarian embassies and consulates can act as notaries for these Bulgarian documents.
- Alternatively, using a local notary complicates the process, as documents must be in the local language, requiring additional steps for translation and legalization.
Specifics (*this is not all the specifics)
- When opening a company by a foreigner, it is important that he / she is aware of the content of the documents he / she signs. There are 2 possibilities:
- Registration documents must be translated into the foreigner’s mother tongue or another language he understands. In this case, a bilingual version of the documents is prepared. The translation may not be made by a sworn translator, but then the person who did it should indicate his names, certify the accuracy of the translation and sign it.
- When opening a company by a foreigner, there is the following possibility. The documents may not be translated, but in this case a person who knows the relevant language must declare that he has translated the contents of the documents into a language understood by the foreigner and sign. The foreigner, for his part, must also declare that he understands the meaning of the documents and sign. These actions are performed before a notary.
- Of course, if the foreigner speaks and speaks Bulgarian, the need for translation is eliminated.
- Another specificity is that the name of the foreigner should be written in Cyrillic.
Key Benefits of Opening a Company in Bulgaria
| Benefit | Explanation |
| Low Tax Rates | Bulgaria offers one of the lowest corporate tax rates in the EU, at just 10%. |
| Access to the EU Market | As an EU member state, Bulgaria provides access to the European market. |
| Affordable Operating Costs | The cost of labor and office space is competitive, making it cost-effective. |
| Streamlined Registration Process | The process to register a company in Bulgaria is relatively simple and quick. |
| Growing Economy | Bulgaria has experienced steady economic growth, attracting foreign investment. |
Is it possible to open a company by a foreigner remotely?
The answer is yes! Foreign citizens can register companies in Bulgaria without being physically present in the country. To open a company by a foreigner, the foreign citizen must notarize the documents in the country where he resides. The role of a notary abroad for Bulgarian documents is performed by the Bulgarian embassies and consulates.The other option is a local notary. This complicates and makes the process much more expensive. The local notary can certify the documents only if they are in his own language, after which they have to go through translation into Bulgarian and legalization, which also considerably prolongs the process.
The two documents that must be certified in case you will remotely open a company by a foreigner are again the sample signed by the manager, but also a power of attorney to open a fundraising account of the company and deposit capital on behalf of the partners.
Opening a company in Bulgaria as a foreigner is a straightforward process that offers several advantages, from low taxes to access to the EU market. Whether you are looking to start a small business or establish a larger corporation, Bulgaria provides an ideal environment for entrepreneurial growth. With its growing economy, low operating costs, and simple company registration process, Bulgaria remains a top choice for foreign investors.
If you’re ready to take the plunge, understanding the steps involved and knowing the costs up front will make the process smooth and successful.
We at T&G Consulting are ready to assist you and advise you on issues related to starting a company by a foreigner in Bulgaria.
Frequently asked questions
Do I need a Bulgarian partner to open a company in Bulgaria?
Answer: No, you do not need a local partner to open a company in Bulgaria. Foreigners can own 100% of the shares in a Bulgarian company.
What types of companies can I register in Bulgaria?
Answer: The most common types are a Limited Liability Company (LLC) or a Joint Stock Company (JSC). LLC is the most popular choice for small and medium-sized businesses.
How long does it take to register a company in Bulgaria?
Answer: The company registration process can take between 3 and 5 business days, depending on the efficiency of the Commercial Register.
What is the minimum capital required for a company in Bulgaria?
Answer: A: For an LLC, the minimum capital is BGN 2 (approximately €1). For a JSC, the minimum capital is BGN 50,000.
Do I need to register for VAT?
Answer: If your annual turnover exceeds BGN 50,000, you must register for VAT. Otherwise, it is optional.
