Bulgaria is a Baltic nation with thriving economy and a very planned business infrastructure. Trade treaties and open business policies make Bulgaria one of the finest places to do business from. Forming a company in Bulgaria requires undergoing several steps and a set-piece procedure to be followed. The process begins at choosing the type of business structure to adopt; depending on the size, mobility, investment, and business activity.

Naturally, there are several costs involved in forming any type of a business structure; some costs pertain directly to state fees, notarization etc. while others relate to the business operations. We will discuss the estimated costs and predicted expenses for various business structures in Bulgaria in this article.
Types of business structures
The Ministry of Economy and Industry of Bulgaria permits various types of business structures for local and foreign investors. Each business type requires different levels of investment, documentation, and procedure. Here are some of the popular business structures and their basic details.
S# | Type of business structure | Local name | Min. required. paid-up capital |
1. | Limited Liability Company | Дружество с ограничена oтговорност (OOD) | €1 |
2. | Joint Stock Company | акционерно дружество (AD) | €25,000 |
3. | Partnership | Командитно дружество (KA) | No min. paid-up capital required |
Limited Liability Company
A limited liability company or OOD is the format of choice for small and medium businesses as it takes very little time and effort to register, is easier to manage, and requires virtually no minimum paid-up capital. Once registered, an OOD is recognized as a legal person, hence liberating the owner(s) from any liability in personal capacity but merely to the extent of their investment in the company.
The steps to register an OOD are as under:
- Choose a name for the company, verify for availability, and reserve
- A person may be appointed to represent the company in Bulgaria
- Deposit the minimum paid-up capital i.e., €1 in a local bank account
- Establish articles of association and submit the same with the commercial registry of Bulgaria
- If applicable, apply for licenses for the trade or activity the company is intended for
- Tax registration, Bulstat registration for OOD
Joint Stock Company
A joint stock company or AD is akin to a Public Limited Company elsewhere. It is a form of business that is favored by large corporations or businesses that require large capital to initiate. The paid-up capital is distributed into shares and offered to general public through stock listing. Initially, the company pledges a certain sum to a bank against which an IPO is created in form of shares for the public to buy. The minimum required paid-up capital to register is approximately €25,000.
Other costs include:
- Notarization of documents
- Registration of company address
- State and local fee
- Legal cost
- Licenses and tax registration
Partnership
A partnership is the simplest business format primarily for small and family business activities. Two or more people partner to achieve a common commercial goal. It can be trading, sales, services, or any activity that does not require a large workforce, usually. There is no restriction on the initial capital, partners contribute whatever investment they wish; usually sharing profits in the same percentage as their investment and assuming loss in the same manner.
General costs involving registration of a partnership are:
- Notarization
- Tax registration
State fees and other costs
The fees involved in registering a business enterprise depends on the type of company and the location it is being registered within Bulgaria. Some cities have higher registration costs than others, for instance Sofia is pricier than Plovdiv, etc.
Here are a few generalized costs (approximations) which are likely to be incurred during the company forming and registering process.
- Registration in the commercial register at the Registry Agency – €56. Compulsory documents are listed below:
- Articles of association
- Resolution for company setup and appointment of managers
- Signature certified by notary of managers, owners, etc.
- Certificate from the bank where the company has its official account
- Non-encumbrance certificate (if applicable) – €5 normal delivery and €15 for express services
- Notarization for deeds (sales, services, property, etc. if applicable) – €5
The above costs only cover the most basic costs involved during the process, other costs that a business may incur in general are listed below:
- Electricity per kWh – €.5
- Office rent in business districts average between €5-15 per sq.m.
- Minimum wage for a blue-collar job – €2/hour
- Minimum salary for white-collar job – €350/month
- Internet cost per connection – €25-€30/month (12-15Mbps connection)
- Fuel – €4.8/gallon
- Food, entertainment, transportation, and other allowances – €40/day (highly volatile depending on personal spending habits.
Challenges and advantages of doing business in Bulgaria
While there are a few challenges to establish and operate business in Bulgaria, there are tons of benefits and opportunities that shadow these cons. We will list down both so that the reader may establish an informed opinion.
Challenges
The challenges involved, are faced during the formation phase of the company mostly. These are:
Registering the business
It may take up to 3 weeks to register a company with the Commercial Register and another week or so to register for the VAT. Similarly, the deposit should be made in full and articles of association established before submitting for registration.
Permits and licenses
Some business activities are regularized by government and require permit or licenses to be performed. Obtaining these permits and licenses is a laborious task and take a lot of time, persistence, patience.
Electricity connection
Getting an electricity connection for a plant or factory is tiresome. It requires multiple visits and deliberations with the CEZ distribution before the businesses are allowed to install meter on their premises.
Tax payments
A ton of company hours are spent to maintain and file taxes involving dealing with social security contributions and VAT.
Cross border trading
It usually takes 21 days to export a shipment out from Bulgaria and 17 days to import goods from other countries. Considering the cost involved and perishability of the goods, it is a very time-consuming activity.
Advantages
The advantages of opening a company in Bulgaria are numerous, some direct while others affect business indirectly. We have featured few of the most attractive advantages here.
- Being a member of the EU allows access to a huge consumer base
- Stable economic environment
- Stable and powerful currency
- Favorable tax regime and policies
- Double tax treaties with many countries within and outside EU sphere
- Low cost of living
- Availability of highly skilled and hardworking labor
- Liberty to buy property in the country for foreigners
- Direct reach to south and east Europe
You may also find these articles helpful
Guide on company registration in Bulgaria
Registering limited liability company in Bulgaria – full Guide
Joint-stock company registration guide in Bulgaria