Incorporating a Company in Bulgaria (OOD)

Why Bulgaria for a holding or trading company

Bulgaria applies one of the lowest flat corporate tax rates in the EU (10% on profits), with dividend withholding within the EU-planning range and exemptions available for qualifying EU parents under the domestic transposition of the Parent-Subsidiary Directive. An OOD (similar to a German GmbH or French SARL) can be incorporated with a minimum capital of BGN 2.

The incorporation route

An OOD is founded by a decision or contract of the sole or multiple members, adopted by electronic or notarial power of attorney when the founder is abroad, then registered in the fully electronic Commercial Register. The company exists from registration; the manager is appointed in the same procedure and signs with a qualified electronic certificate, so the entire process can be completed remotely.

Banking and compliance

The practical bottleneck for foreign founders is not the registry but the bank account: compliance review of directors and beneficial owners takes weeks, so we prepare the KYC file — source of funds, business-model description, translated corporate documents — in advance. Companies with turnover above BGN 100,000 in the preceding twelve months must register for VAT; intra-EU trade adds Intrastat and VAT-identification duties, which we set up with the accountant.

Employment and residence

Non-EU founders who intend to work in Bulgaria need a work permit and a D-type residence visa, sequenced permit first, visa second, residence card after arrival. We run the procedure with the Labour Office and Migration Directorate and advise EU citizens on address-registration formalities.

How we help

Name and structure selection, founding documents, power-of-attorney drafting and legalisation, registry filing, KYC-file preparation for the bank, VAT and Intrastat registration, and post-formation compliance support.

This page is generated by the firm’s neural network from firm data. It is informational only and not legal advice. For a specific case, consult a lawyer.

Advocast — Bulgarian Law Firm | Sofia, Bulgaria | Phone: +359 888 30 82 82 | law@rashkov.eu | advocast.bg (Bulgarian-language site)