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Establish a Subsidiary in Bulgaria

Establish a Subsidiary in Bulgaria

A foreign company may choose to open a company in Bulgaria whose shares will be kept in totality or partially by it. This type of company is called subsidiary. A subsidiary has its own capital and management bodies and it’s considered a separated legal entity. There are two popular forms a subsidiary may take in Bulgaria: as a limited liability company or as a joint stock company. Our company formation agents in Bulgaria can help foreigners establish their subsidiaries in this country.

 Quick Facts  
  Applicable legislation (home country/foreign country)

Bulgarian Company Law

Best used for

– banking,

– insurance,

– automotive,

– IT,

– manufacturing

Minimum share capital

Time frame for the incorporation (approx.) 

Around 2 months

Management (local/foreign)


Legal representative required 


Local bank account


Independence from the parent company Yes
Liability of the parent company The subsidiary is fully liable for its debts and obligations
Corporate tax rate 10%
Possibility of hiring local staff Yes
Minimum number of shareholders for a subsidiary in Bulgaria   2 shareholders for an LLC in Bulgaria

Documents solicited 

 – Articles of Association,

– Memorandum of Association

 Approvals issued by

Commercial Registry in Bulgaria 

What is TIN?  Tax Identification Number issued for forming a company in Bulgaria, including a subsidiary 
 VAT threshold in Bulgaria

 BGN 100,000

 Accounting rules for subsidiaries in Bulgaria

 Respecting the double-entry accounting system, filing annual financial statements

Appointing a subsidiary director 

 Requested by law

 Notarization of documents

Notarizing, legalizing, and apostilling all documents for opening a subsidiary in Bulgaria is solicited. 

 Resolution for a subsidiary in Bulgaria

Creating a resolution of the parent company informing about the decision to open a subsidiary in Bulgaria is required. 

VAT returns for subsidiaries in Bulgaria   On a monthly basis
 Sample of notarized signature of the subsidiary manager in Bulgaria


Advantages of subsidiaries in Bulgaria 

Flexibility, independency, 100% foreign ownership, low taxation, etc. 

 Can it have other activities besides the main ones? (YES/NO) 


VAT in Bulgaria


How can our Bulgarian agents help you?  They can manage all the formalities and procedures of opening a subsidiary in Bulgaria.

How is an LLC formed in Bulgaria in 2024?

A limited liability company is formed by at least one shareholder with a symbolic minimum share capital of 1 Euro, while the joint stock company must be formed by at least two shareholders, with a minimum share capital of at least 25,000 Euros. There is no need for the subsidiaries opened in Bulgaria to have resident shareholders or managers.

Continuing with the formalities for establishing a subsidiary in Bulgaria in 2024, we mention that the registration authorities request the Memorandum and the Articles of Association. The decision of forming a subsidiary in Bulgaria must be comprised of a declaration or statement issued by the parent company. The Registry Agency of the Ministry of Justice, alongside the Commercial Register in Bulgaria, receives the documents for subsidiaries in Bulgaria. Our company formation specialists in Bulgaria closely collaborate with the institutions in charge of company incorporation. If you would like to know more about how the business is done in 2024 in Bulgaria, feel free to send your inquiries to our team of specialists.

subsidiary in Bulgaria can be registered in a maximum of 2 months if all the formalities and procedures are respected. For instance, you can open such a business in the banking or insurance sector.

An important aspect about a subsidiary in Bulgaria is that such a structure must have the Tax Identification Number or TIN from the Registry Agency, before commencing the activities. Such a number shows that the company is registered for taxation in Bulgaria.

Support for certain businesses in Bulgaria

The Encouragement of Investment Act provides support for certain types of business if the following conditions are met: the investment implementation doesn’t exceed three years or the investments are made for the improvement of the creation of products and services and provide new jobs. A subsidiary registered in Bulgaria has the same tax regime as a local company. The VAT must be paid monthly if the annual turnover exceeds BGN 100,000.

The National Revenue Agency must receive the accounts of the subsidiary annually. Double tax treaties may be applied to capital gains or dividends, interests and royalties. Unlike a branch, there is no obligation to submit the financial statements of the foreign company at the National Revenue Agency.

A Bulgarian subsidiary grants the business expansion of the foreign company in this territory, protected by the European Union directives and legislation.  

Steps in opening a subsidiary inbulgaria.png

The obligations of a Bulgarian subsidiary

Before registration, the Bulgarian company must deposit the minimum share capital in a bank account, especially opened for the future financial operations. Below are a few steps to consider for establishing a subsidiary in Bulgaria:

  1. Subsidiaries established in Bulgaria must submit to the Commercial Registry an application containing the address of the registered office and details regarding the subsidiary’s representative.
  2. Along with the application, the foreign company must also provide the contract between the subsidiary and the parent company.
  3. The consent with a specimen of the signature of the subsidiary manager (notarized) and the decision of opening a subsidiary taken by it must be prepared.
  4. The last step before starting a business in Bulgaria is registering for VAT, but only if there are predictions that in the future the annual threshold will exceed BGN 100,000.

The process of registration of a subsidiary normally takes about 18 days, but the process depends entirely on the correctness of the provided documents.

Registering a subsidiary in Bulgaria also means a wide range of procedures and responsibilities like tax registration, bookkeeping, payroll, employment matters, annual financial statements, etc.  We provide complete services for international entrepreneurs looking to expand their operations in Bulgaria.

If you decide on an LLC, or OOD in Bulgaria for opening a subsidiary, the minimum share capital is 2 BGN, or 1 EUR, which is quite convenient for international entrepreneurs looking for business on this side of Europe.

Below is a video presentation on this topic:

Our team of accountants in Bulgaria can manage a number of aspects related to this field. The most important procedures are payroll, bookkeeping, preparation of annual financial accounts, and registration for tax payments. Each company can receive personalized services, depending on the activities and the number of employees, among other aspects. So, get in touch with us and find out what kind of services you can receive.

FAQ about subsidiaries in Bulgaria

1. Is it hard to establish a subsidiary in Bulgaria in 2024?

No, there are no harsh formalities for opening a subsidiary in Bulgaria in 2024. The process is straightforward especially if you decide on working with our company formation agents in Bulgaria you will benefit from complete services for subsidiary registration.

2. Who can open subsidiaries in Bulgaria?

International entrepreneurs interested in business in Bulgaria can easily establish subsidiaries in this country. Ask for our support for the incorporation process.

3. How do I open a subsidiary in Bulgaria?

You can choose the limited liability company or the joint-stock company for your subsidiary in Bulgaria. In any case, you should ask for the help and assistance of our specialists in Bulgaria.

4. Does a subsidiary in Bulgaria have a special tax regime?

No, subsidiaries are treated just like any other company in Bulgaria. The applicable tax regime for local businesses is also available for subsidiaries.

5. Is it hard to open a bank account for a subsidiary in Bulgaria?

No, you can open a corporate bank account in Bulgaria and deposit the minimum share capital solicited for your subsidiary. One of our agents can help you open a bank account in Bulgaria.

6. Is a subsidiary the proper choice for expanding the activities in Bulgaria?

Yes, a subsidiary is an optimal solution for those who want to develop their operations in this part of Europe. Bulgaria already hosts a large number of foreign companies that generate huge profits each year.

7. How fast can I incorporate a subsidiary in Bulgaria?

Subsidiaries in Bulgaria can be registered in a few days if the authorities accept the submitted documents and if all the conditions are respected. Plus, you can be helped by one of our company formation agents in Bulgaria for a smooth process.

8. Do I need to register the subsidiary for taxation?

Yes, subsidiaries must be registered for taxation in Bulgaria, just like any other type of company. 

9. Is the subsidiary an independent legal entity?

Yes, subsidiaries are independent legal entities, apart from the parent company. The accounts are handled separately and the accounting report made no the parent company is not mandatory.

10. What is the corporate income tax for subsidiaries in Bulgaria?

The corporate income tax in Bulgaria is set at a 10% rate and it is imposed on the worldwide income of subsidiaries. All the details about taxation in Bulgaria can be discussed with one of our specialists.

If you are ready to open a startup in Bulgaria, our local agents can guide you on the steps you have to follow in this endeavor. Once the documents are drawn up and accepted by the authorities, we move on to opening a bank account, registering for the payment of taxes, and appointing directors. You will also need a business address and a team of accountants. Everything related to opening such a business comes to our attention, so don’t hesitate to contact us.

The annual financial statements of a subsidiary in Bulgaria must be filed before March 31st of each year. The Trade Register in Bulgaria receives and verifies such documents.

Making investments in Bulgaria in 2024

Bulgaria is a great and appealing investment hub in the Eastern part of Europe and a destination that already hosts a large number of foreign branches and subsidiaries. The tax regime in Bulgaria is one of the most favorable among the EU countries and often the business advantage is attentively measured by entrepreneurs from overseas.

The skilled and multilingual workforce, the ease of doing business, the lack of complexities for starting a business, the economic stability, and the strategic geographic location represent only a few of Bulgaria’s main attributes and advantages.

Many business opportunities are offered in sectors like manufacturing, tourism, textiles, chemical, extracting industry, agriculture, and more. Investors from abroad are also attracted by the real estate sector which continues to flourish at a fast pace. The following facts and figures highlight in large lines the economic direction of Bulgaria:

  1. Nearly USD billion the total FDI stock for Bulgaria in 2019.
  2. The 2020 Doing Business report ranks Bulgaria 61st out of 190 economies in the world.
  3. A large percentage of the FDIs in Bulgaria are directed to the real estate sector, followed by manufacturing.
  4. Germany, Austria, the Netherlands, and Italy are the main investors in Bulgaria.

For more details about opening a subsidiary in Bulgaria, you may contact our company formation agents.