Company formationEuropeBulgarian EOOD company formation
A Bulgarian EOOD is a single-member limited liability company registered in the Commercial Register of the Registry Agency, which foreign individuals and companies can own outright. As of October 2026 the minimum capital is €1 and profits are taxed at a flat 10%.
Updated
An EOOD is formed by one founder, a person or a company of any nationality, who adopts the articles of association, appoints a manager and pays in the capital. The application goes to the Commercial Register online with a qualified electronic signature or on paper, and new companies are registered by the end of the next working day.
The company needs a seat and management address in Bulgaria and, where its owner is not an individual already shown in the register, a declaration of its beneficial owners. The owner can manage the company personally or appoint a manager. Since 1 January 2026 capital is in euro, and the minimum capital is €1.
Each year the company files its corporate tax return between 1 March and 30 June and publishes its annual financial statements by 30 September. VAT registration becomes compulsory once domestic turnover exceeds €51,130 in a calendar year, and the standard rate is 20%.
Bulgarian lawyers and accountants prepare the formation documents and give tax advice; Redomiciled coordinates the process.
Who it suits
Online service and consulting businesses
You sell services internationally and can run the business from Bulgaria.
EU founders relocating
You want an EU base with flat taxes and plan to live in Bulgaria for most of the year.
Export-focused digital businesses
Most of your customers are outside Bulgaria, where business-to-business sales often fall outside Bulgarian VAT.
Non-EU founders with an established company
You want a Bulgarian operating company alongside a residence permit.
Requirements
- Required
One founder
An individual or a company of any nationality holds all the shares.
- Required
Manager
The owner or an appointed manager runs and represents the company.
- Required
Seat and management address in Bulgaria
Recorded in the articles and in the Commercial Register.
- Required
Capital of at least €1
Paid in when the company is formed.
- Depends on your case
Beneficial owner declaration
Required where the owner is a company or where someone other than the registered owner controls it.
- Depends on your case
Bulgarian bank account
Not a legal condition for every company, but expected in practice and for residence applications.
- Depends on your case
VAT registration
Compulsory above €51,130 of domestic turnover in a calendar year; voluntary registration is possible.
Documents
- Articles of associationName, seat, business objects, capital and management of the company.
- Manager's consent and specimen signatureThe manager's notarised acceptance of the appointment.
- Evidence of capital paymentConfirmation that the capital has been paid in.
- Company documents for corporate foundersA current register extract and, for foreign companies, legalised and translated documents.
- Beneficial owner declarationFiled with the application where it is required.
Timeline
- 1Name and structureChoose the company name, reserve it if needed and decide who manages the company.
- 2Documents and signaturesArticles, the manager's consent and, for corporate founders, legalised company papers.
- 3Capital paymentPay in the capital, at least €1.
- 4Commercial Register filingOnline or on paper; new companies are registered by the end of the next working day.
- 5Bank account and accountingOpen a bank account, appoint an accountant and register for VAT where needed.
- 6Annual cycleCorporate tax return by 30 June, financial statements published by 30 September, and advance tax payments once revenue grows.
Tax notes
- Corporate income tax is a flat 10% of taxable profit. Dividends paid to individuals are taxed at 5%, withheld by the company. The proposal to raise the dividend tax to 10% for 2026 was withdrawn in December 2025, and the 2026 budget adopted in July 2026 kept 5%.
- A salary from your own company is taxed at the flat 10% personal rate, with social security contributions on top, so the mix of salary and dividends is worth planning with an accountant.
- Advance payments of corporate tax are not due in the year of formation or the following year; after that they depend on the company's revenue.
- Managing a foreign company from Bulgaria can give it a permanent establishment and Bulgarian tax exposure. The reverse also holds: an EOOD run from another country may be taxed there.
- The standard VAT rate is 20%. Services to business customers in other EU countries and exports outside the EU are generally outside Bulgarian VAT or zero-rated, which suits export-oriented businesses.
General information, not tax advice. Your position depends on your circumstances.
Banking fit
- Bulgarian banks onboard local companies with resident owners most easily; non-resident owners should expect more questions.
- Income is expected to flow through a Bulgarian account, which also supports the company's substance and any residence application.
- Accounts with foreign banks or payment institutions are allowed, but count towards the annual BNB report once balances reach €25,000.
Questions
Can a foreigner open a company in Bulgaria?
Yes. A foreign individual or company can be the sole owner of an EOOD, and living in Bulgaria is not required to form it. The company needs a Bulgarian seat and management address, and banks may ask non-resident owners for more documents.
What is the minimum capital for a Bulgarian EOOD?
€1 since the euro was adopted on 1 January 2026; before that it was 2 lev. The capital is paid in when the company is formed.
How long does it take to register a Bulgarian company?
The Registry Agency registers new companies by the end of the next working day after a complete application. Preparing documents and signatures, and legalised papers for foreign corporate founders, usually takes longer than the registration itself.
How are dividends from a Bulgarian company taxed?
Bulgaria withholds 5% on dividends paid to individuals, after the company has paid 10% corporate tax. If you live elsewhere, your country of residence may also tax the dividend, with credit depending on its treaty with Bulgaria.
What are the annual obligations of a Bulgarian EOOD?
The corporate tax return is filed between 1 March and 30 June, financial statements are published by 30 September, and VAT returns follow if the company is registered. Foreign account balances of €25,000 or more are reported to the Bulgarian National Bank each year.
More in Bulgaria
- Everything about BulgariaView
- ResidencyBulgaria residency and tax residenceBulgarian residence is a registration certificate for EU citizens and a D visa followed by a residence permit for everyone else. Since 2025 the routes include a digital nomad permit; as of October 2026, people staying more than 183 days in any 12-month period, or whose centre of vital interests is in Bulgaria, are tax resident.View
Company formation elsewhere
- Cyprus company formation for EU-focused businessesA Cyprus limited company is an EU-resident company used by founders who need dependable European banking and payment access for activities that banks review closely. As of 2026 it pays 15% corporate tax on profits, and dividends paid to non-resident shareholders generally carry no Cyprus withholding tax.View
Cyprus - UK limited company formation for international foundersA UK private limited company (Ltd) is a separate legal entity, owned by shareholders and run by directors, that non-residents can register online with Companies House. As of October 2026 registration usually takes 24 hours, and directors and people with significant control must first verify their identity.View
United Kingdom - Georgia company formation: entrepreneur, LLC or Virtual ZoneGeorgia offers founders a choice between registering as an individual entrepreneur, often with 1% small business status, and forming a limited liability company taxed only when it distributes profits. As of October 2026, distributed profits are taxed at 15% and IT companies with Virtual Zone status are exempt on exported IT services.View
Georgia - Estonian OÜ company formation with e-ResidencyAn Estonian osaühing (OÜ) is a private limited company that e-residents can register online through the Company Registration Portal. As of October 2026 the minimum share capital is one cent, and profits are taxed at 22% only when they are distributed.View
Estonia - Serbia company formation: entrepreneur or LLCForeign founders in Serbia usually register either as an entrepreneur, a natural person trading in their own name, or as a limited liability company (d.o.o.). As of October 2026, entrepreneurs pay 10% income tax, companies pay 15% profit tax, and either form can support a single permit for self-employment.View
Serbia - Irish company formation for EU trading businessesAn Irish private company limited by shares (LTD) is an EU company taxed at 12.5% on trading profits. Non-trading income such as most investment or rental income is taxed at 25%. The 15% Pillar Two minimum tax applies only to groups with consolidated revenue of EUR 750 million or more, not to typical owner-managed companies.View
Ireland
Related guides
Why Your US LLC Needs a Signed Operating Agreement to Open a Bank Account
If banks keep turning down your US LLC, the missing piece is often a signed, dated operating agreement. What it is, why banks ask for it, and the mistakes we see most often.
US LLC or Hong Kong Company? Which Is Right for Your Online Business
Most e-commerce and online service owners start with a US LLC and later look at Hong Kong as the business grows. Here's why, and which structure fits when.
Five Business-Friendly Jurisdictions for International Founders, and What Each One Is For
Most lists of business-friendly jurisdictions rank countries. This one takes five from almost every founder's shortlist and asks what each is actually built for.
Sources
- European Commission: Bulgaria and the euro, retrieved 2026-10-25
- Ministry of Finance: Corporate income tax, retrieved 2026-10-25
- National Revenue Agency: Annual tax on personal income, retrieved 2026-10-25
- National Revenue Agency: Tax on dividends, retrieved 2026-10-25
- National Revenue Agency: VAT registration, retrieved 2026-10-25
- National Revenue Agency: VAT in Bulgaria, retrieved 2026-10-25
- Registry Agency: Commercial Act (text as of January 2026), retrieved 2026-10-25
- Registry Agency: State fees in euro from 1 January 2026, retrieved 2026-10-25
- Registry Agency: Commercial Register and Register of Non-Profit Legal Entities Act, retrieved 2026-10-25
- National Statistical Institute, NRA and Registry Agency: Order on annual financial statements 2025, retrieved 2026-10-25
- National Revenue Agency: Filing the corporate tax return, retrieved 2026-10-25
- National Revenue Agency: Resident and non-resident individuals, retrieved 2026-10-25
- Ministry of Interior, Migration Directorate: Citizens of the EU, retrieved 2026-10-25
- Ministry of Labour and Social Policy: Foreigners in the Republic of Bulgaria Act (consolidated, 2026), retrieved 2026-10-25
- State Gazette No. 52/2025: amendments to the Foreigners Act (digital nomads), retrieved 2026-10-25
- State Gazette No. 109/2025: Council of Ministers Decree No. 286 (implementing rules), retrieved 2026-10-25
- Ministry of Foreign Affairs: Visa type D, retrieved 2026-10-25
- National Assembly: Citizenship by investment abolished (24 March 2022), retrieved 2026-10-25
- Bulgarian National Bank: New reporting of accounts held abroad (11 March 2026), retrieved 2026-10-25
- Council of the EU: Land border controls with Bulgaria and Romania lifted (12 December 2024), retrieved 2026-10-25
- Redomiciled internal briefing: Bulgaria relocation and tax, retrieved 2026-10-25
Reviewed by the Redomiciled team on .
Set up your company in Bulgaria.
Answer a few questions and we come back with a recommendation for your situation, without obligation.