Set up OOD in Bulgaria

When deciding for a business in Bulgaria, the first thing to do is to choose the type of entity you want. A popular form in Bulgaria is the one called limited liability company (LLC) known as drujestvo s ogranichena otgovornost (OOD) in the Bulgarian language. Our team of company formation specialists in Bulgaria is at your disposal with assistance for opening a business, in compliance with the conditions imposed by the authorities in charge.

Quick Facts
Governing authorities	The Bulgarian Commercial Act and the Trade Register Act
Business licenses and permits	Depending on the type of business, specific licenses or permits may be required (e.g., food, health, etc.).
Company structure of an OOD in Bulgaria	– shareholders, – managers, – optional supervisory boards.
Initial capital requirements	Minimum BGN 2 (EUR 1) for an LLC in Bulgaria
Number of founders of an LLC in Bulgaria	Minimum one founder (individual or legal entity)
Management structure	One or more managers –  They can be shareholders or external persons.
Company registration process	Requires filing documents with the Bulgarian Commercial Register.
Necessary documentation	Company statute, founders’ identification documents, Articles of Association,  proof of address, and bank certificate for capital.
Corporate tax rate	Standard 10%
Bookkeeping requirements (Yes/No)	Yes, it is mandatory to keep accounting records and submit annual financial reports.
Potential financing methods	Personal contributions, loans, external investors, or reinvested profits
Compliance obligations for an LLC in Bulgaria	Must comply with tax laws, reporting obligations, and adhere to the company’s statute.
Company lifespan	Perpetual, unless the company’s statutes dictate otherwise.
Liquidation procedure of an OOD	Must go through a formal liquidation process involving creditors and government authorities.
Legal guidance	Find support from our specialized lawyers in Bulgaria in this matter.

The steps of company formation of an LLC in Bulgaria in 2025

Once you decide to set up an LLC in Bulgaria in 2025, firstly you have to choose a name that has to be unique and you need to check if it is available and issue the proven document.  Here are other things to consider:

• The name must include the company’s legal form, which is OOD for a limited liability company. The name of the LLC must be in Bulgarian because this is the only official language. It also cannot contain words that are misleading or imply a connection with government or public bodies or words that are protected by trademarks or intellectual property rights.
• The Bulgarian Commercial Register will review the proposed name and approve it or suggest changes if needed. Once the name is approved, it will be registered with the Bulgarian Commercial Register and can be used for the LLC.
• You also need to comply with the other requirements issued by the Bulgarian Commercial Register. The managing body of the company needs an act of association as a result of the constituent meeting. The number of stakeholders is at least one, and the stakeholders of a Bulgarian limited company can be both individuals or legal entities.
• The company body of the  Bulgarian OOD is made of a general meeting of stakeholders and a (minimum one) manager.
• The LLC must have a director to represent the company in front of authorities, but it is not mandatory for him to be a Bulgarian resident.
• For an efficient communication, the OOD company should have a registered office in Bulgaria and a bank account.

More about how to open an LLC in Bulgaria in 2025 can be solicited from our team of company formation agents in Bulgaria.

What is the minimum share capital for OOD in Bulgaria?

It is good to know that the authorized capital required for an LLC in Bulgaria is BGN 2 or EUR 1. The entrepreneur needs a bank document to state the deposit, attached to the file. The capital must be fully paid up at the time of LTD company registration in Bulgaria. If you do not want or cannot travel to Bulgaria to open a business, you can request a power of attorney, a document with which you can be represented by one of our local specialists.

The Bulstat number for OOD in Bulgaria

The Bulstat number represents the company’s tax identification number that shows the company is registered as a taxpayer in Bulgaria. The National Social Security Institute in Bulgaria provides the Bulstat number for which the company must apply along with the papers for the Commercial Registry.  Once the OOD is registered, the Bulgarian Commercial Register will assign a Bulstat number to the company consisting of a block of 9 digits. Below is an infographic with the main advantages of an LLC in Bulgaria:

Necessary documents for LLC registration in Bulgaria in 2025

The shareholder of a limited liability company in Bulgaria needs to put together the papers for the Registry Agency like:

• the application form, the name certificate, and the signature specimen with the notary consent of the person who represents the company;
• the owners of the limited liability company will have to prepare a set of copies of their identity documents;
• in case of legal entities setting up the company, legalized copies of the corporate documents are required; 
• a set of copies of the owners’ identification documents (ID and passports).

Additionally, you also need proof of payment of the minimum capital issued by your bank and additional documents depending on the specifics of the company. The Registry Agency accepts paper and electronic applications. A court decision will acknowledge the main scope of the company and will include the articles of incorporation. The company receives a registration number and a taxation number. In the process of company registration in Bulgaria, the State Gazette publishes the Register entry, but it doesn’t mean that the set up of the company is complete.

We invite you to discover our services and also check this video presentation with details about DOO incorporation in Bulgaria:

What are the taxes for LLCs in Bulgaria?

One should know that a Bulgarian limited liability company is subject to the Corporate Income Tax Law and the rate is 10%. The 20% VAT is not mandatory for companies with an income under BGN 50,000. Another thing that is not compulsory for an LLC is the independent audit of annual accounts. The LLC set up in Bulgaria is required to pay social security contributions. This can be done by filing an application at the Social Security Administration.

You should know there are quite a few tax benefits when opening an LTD in Bulgaria. The flat rate of 10% is one of the lowest corporate income tax rates in Europe, making it an attractive location for businesses. Also, certain goods and services are subject to a reduced VAT rate of 9% instead of the standard 20%. Bulgaria has a large number of Double Taxation Treaties with other countries, which can help to reduce or eliminate double taxation of the same income in two different countries. It is also a member of the European Union which gives access to the single market and EU funds.

The cost of an LTD company registration in Bulgaria is also relatively low compared to other European countries. This cost includes the registration fees, lawyers, and notaries, but is usually around 400 – 800 euros. Of course, this depends on the type of company you are starting and on other factors that may come up through this process.

 The main attributes of LLCs in Bulgaria

Foreign entrepreneurs who choose to open an LLC in Bulgaria may benefit from a reputable business environment and permissive investment legislation in most sectors of interest in this country. Among the attributes of OOD in Bulgaria, we mention the following:

• such companies can deal and sign contracts in agreement with the applicable legislation;
• an LLC in Bulgaria can issue invoices to local clients and can deal with trading activities;
• each LLC in Bulgaria can solicit virtual office services instead of setting up a traditional office;
• there is no need for frequent statutory audits, but the annual tax return must be submitted;
• an LLC in Bulgaria can be established by at least one shareholder.

Bulgarian limited companies have a few advantages. Shareholders of an LTD in Bulgaria are only liable for the company’s debts to the extent of the capital they have invested. This means that the shareholders’ personal assets are generally protected from the company’s creditors. An LTD is a flexible business structure that can adapt to different types of business activities and ownership structures. The process of setting up an LTD in Bulgaria is also quite simple, compared to other types of entities, and the minimum capital requirement is just 2 BGN or 1 EUR.

Company formation in Bulgaria depends on the type of business you plan to run. You might need some additional licenses and permits to legally operate. If you plan to hire employees, you also need to comply with Bulgarian labor laws and regulations. Employees need to be registered at the National Social Security Institute and to be provided the necessary benefits.

Virtual office services for LLC in Bulgaria

Investors from abroad who want to control their business in Bulgaria from their home country can benefit from complete virtual offices in Sofia or in other important cities in the country. Mail collection and forwarding, dedicated fax services, a local phone number for potential clients and collaborators, bank statements collection, and a private local number are provided to foreign entrepreneurs as part of the virtual office packages. We remind you that virtual office services in Bulgaria are cheaper compared to traditional offices for LLC establishments. Our advisors can offer in-depth information on this matter.

Support for company changes

There are cases in which a company suffers modifications like changing the business address, the name of the firm, or increasing the capital. Also, the company owners might be interested in changing the business structure into another one, from a sole proprietorship to an OOD or from an OOD to a joint stock company. All the changes need to be made with the Bulgarian Trade Register in charge of companies in this country. Just like in the case of company formation in Bulgaria, foreign entrepreneurs can address their inquiries to our Bulgarian team of company formation consultants who can represent your firm with a power of attorney and who can handle all the modifications in the company. Also, in the case of insolvency or company liquidation in Bulgaria, you may ask for our support.

To change from a Bulgarian limited company to another type of company you need to follow these steps:

• Hold a meeting with the other shareholders of the company, in order to approve the reorganization and adopt a new set of articles of association;
• File the necessary documents with the Bulgarian Commercial Register;
• Obtain the necessary approval and licenses, depending on the type of company the business is changing into;
• Close the Bulgarian LTD.

You can also change the address of a Bulgarian limited company:

•   Update the company’s internal records with the new address;
•   Notify the Bulgarian Commercial Register and fill in the necessary documents
•   Notify the National Revenue Agency for tax purposes;
• Notify other relevant national authorities such as the local municipality or the Chamber of Commerce and Industry.

Accounting services for your OOD in Bulgaria

Companies having financial operations in Bulgaria will need an accounting department, or better yet, they can benefit from the complete accounting services in Bulgaria provided by our team of consultants specialized in accounting matters. First of all, our team can handle the registration for tax purposes for your firm and then can provide bookkeeping and payroll services for the company. Cash flow reports, tax planning, profit and loss accounts, monthly balances, tax filings, tax minimization methods, and financial records are a few of the accounting matters a company with operations in Bulgaria will deal with. It is good to know that the International Financial Reporting Standards – IFRS and the accounting laws in Bulgaria are the main regulations that are respected by companies with activities in this country. You are invited to talk to our team of experts and find out how you can benefit from our accounting services for your limited liability company or for any type of business structure you decide in Bulgaria.

FAQ about OOD in Bulgaria

Here are some frequently asked questions about limited liability companies in Bulgaria:

Statistics about Bulgaria’s economy

Bulgaria is one of the preferred countries for business expansion among the Eastern European states. The following figures highlight some strong points of this country’s economy:

• According to the National Statistics Office, Bulgaria registered a GDP growth of approximately 2.4% in Q3 of 2024.
• Around EUR 27,492 billion was the total GDP for Bulgaria in 2024.
• About 74% of the total GDP was sustained by the final consumption expenditure, while around 19.5% was allocated to the gross fixed capital formation in Bulgaria in 2024.
• It is estimated that Bulgaria’s economy will accelerate in 2025 and reach an expansion of 2.7% due to exports and fixed investments.

Our experts in company incorporation in Bulgaria can help you with more information about how you can set up an LLC. Please feel free to contact us at any time. In case you need other types of services, such as hair transplant services at a suitable cost, we recommend our partners – Hair-Transplant-Turkey.org.