Why Bulgaria Is Attractive for Foreign Entrepreneurs

Bulgaria has become one of the most appealing destinations in the European Union for foreign business owners. With the lowest corporate tax rate in the EU at just 10%, a strategic location bridging Europe and Asia, and relatively low operating costs, the country offers compelling reasons to set up shop here.

For those considering the Troyan and Lovech region, the advantages multiply. Lower real estate costs, a growing tourism sector, and proximity to natural resources make this area particularly interesting for certain business models.

Who Can Register a Company in Bulgaria?

Any foreign natural person or legal entity can register a company in Bulgaria. There are no citizenship or residency requirements for company ownership. You do not need to be an EU citizen, and you do not need a Bulgarian residence permit to incorporate a business.

However, there are practical considerations:

• EU/EEA citizens can register and manage companies with minimal restrictions
• Non-EU citizens can own and register companies but may need a local representative for certain administrative tasks
• Foreign legal entities can establish subsidiaries or branch offices

Step-by-Step Registration Process

1. Choose Your Legal Form

The most common legal forms for foreign investors are:

• EOOD (Sole-Owner Limited Liability Company) - ideal for single owners
• OOD (Limited Liability Company) - for two or more partners
• AD (Joint-Stock Company) - for larger enterprises

Most foreigners choose the EOOD for its simplicity and flexibility.

2. Reserve a Company Name

You must verify that your desired company name is available through the Bulgarian Trade Register. The name must be unique and cannot be confusingly similar to an existing registered company.

3. Prepare the Required Documents

Key documents include:

• Articles of Association (or Memorandum of Association for EOOD)
• Declaration of consent and specimen signature of the manager
• Declaration under Art. 141, para. 8 of the Commercial Act
• Proof of paid-in capital deposited in a Bulgarian bank
• Application form A4 for the Trade Register

Foreign documents must be apostilled or legalized and translated into Bulgarian by a certified translator.

4. Open a Capital Deposit Account

Before registration, you must open a special accumulation account at a Bulgarian bank and deposit the minimum required capital. For an EOOD or OOD, the minimum is just BGN 2 (approximately EUR 1).

5. File with the Trade Register

Submit your complete application package to the Trade Register at the Registry Agency. Processing typically takes 2-4 business days. Once registered, you receive a unique identification code (UIC).

6. Post-Registration Steps

After registration, you will need to:

• Register for tax purposes with the National Revenue Agency
• Register for social security if you will have employees
• Obtain any industry-specific licenses or permits
• Consider voluntary VAT registration (mandatory once turnover exceeds BGN 100,000)

Common Mistakes to Avoid

Many foreign entrepreneurs encounter problems because they:

1. Fail to properly legalize documents - All foreign documents need apostille or consular legalization
2. Underestimate banking requirements - Opening a bank account in Bulgaria can be time-consuming for non-residents
3. Ignore ongoing compliance obligations - Annual financial statements, tax returns, and other filings are mandatory even if the company has no activity
4. Skip professional legal advice - The registration process involves Bulgarian legal terminology and specific procedural requirements

Timeline and Costs

A typical company registration takes 1-2 weeks from start to finish, assuming all documents are properly prepared. The main costs include:

• State registration fee: BGN 110 (online) or BGN 160 (on paper)
• Notarization fees for signatures
• Certified translation costs for foreign documents
• Legal representation fees

How a Lawyer Can Help

Working with a Bulgarian attorney streamlines the entire process. A lawyer can prepare all documentation, ensure legal compliance, handle the filing, and advise on the optimal company structure for your specific business goals.

In the Troyan area, having local legal support is especially valuable for navigating regional administrative requirements and establishing relationships with local banks and institutions.

Contact Attorney Dimov

If you are considering registering a company in Bulgaria, Attorney Biser Dimov in Troyan can guide you through every step of the process. With experience serving foreign clients across the Lovech region and beyond, he provides comprehensive legal support from initial consultation through successful registration and beyond. Contact us today for a consultation.