The country offers low tax rates, accessible infrastructure, and access to the European Single Market. Whether you are planning large-scale imports of goods from Asia, cross-border exports of your own products, or the development of a distribution network, Bulgaria provides an advantageous base of operations.

 

Today, the question of how to open a trading company in Bulgaria is one of the most common among representatives of small, medium-sized, and large businesses seeking to operate within the legal framework of the European Union without excessive costs associated with maintaining a corporate structure.

 

In this article, we will examine in detail how to establish a trading company in Bulgaria, what legal aspects should be taken into account, and how to avoid critical mistakes at the initial stage.

 

Why Bulgaria Is Suitable for Trading Businesses

The country’s commercial sector has demonstrated steady growth over the past decades. The main reason is a well-designed government policy aimed at attracting foreign investment.

 

When businesses evaluate how to register a trading company in Bulgaria, they primarily assess the strategic advantages of the jurisdiction. These include:

 

  • Favourable tax regime within the EU. Low tax rates: both corporate income tax and personal income tax are set at 10%.
  • Strategic geographical location and logistics infrastructure. Situated at the crossroads of major transport corridors connecting Europe, the Middle East, and Asia, with large Black Sea ports (Varna and Burgas), as well as a well-developed railway and motorway network, Bulgaria serves as an important hub for imports and exports.
  • Access to the EU Single Market. By registering a legal entity in Bulgaria, you can operate throughout the European market without internal customs duties. Intra-EU supplies are carried out in accordance with EU legislation.
  • Low operating costs. The cost of renting warehouses and offices, as well as salaries for qualified personnel, is significantly lower than in Germany, France, or Austria.
  • Stable currency system. The Bulgarian lev (BGN) is pegged to the euro at a fixed exchange rate, reducing currency risk and ensuring financial predictability.

 

Businesses benefit from comprehensive conditions for uninterrupted operations. For entrepreneurs, this means the ability to quickly launch business activities without incurring high tax and operational costs from the very beginning.

 

Who Can Open a Trading Company in Bulgaria

The country’s legislation is characterised by a high degree of liberalisation towards foreign investors. The state does not create artificial barriers, so anyone wishing to do so may consider how to open a trading company in Bulgaria.

 

Requirements for Non-Residents and Foreign Citizens

Foreign citizens (both individuals and legal entities) have the same rights to establish a business as local residents. Registering a company as a non-resident does not require a local partner (co-founder) or the mandatory employment of Bulgarian citizens (unless you intend to obtain a residence permit on this basis). Business management can be carried out remotely.

 

Requirements for Shareholders and Directors

Mandatory requirements include:

 

  • A company may be founded by one or more persons (individuals or legal entities, residents or non-residents).
  • A foreign national may also serve as the company’s director (manager).

 

The same individual may simultaneously be both the shareholder and the director of the company.

 

Which Company Types Are Suitable for Trading Activities

Before opening a trading company in Bulgaria, it is essential to determine its legal form. This affects the liability of the beneficial owners, minimum capital requirements, and the complexity of corporate governance.

 

EOOD

An EOOD is a limited liability company with a single shareholder (the owner of 100% of the shares), who independently makes all company decisions.

 

Key features:

 

  • Minimum share capital: 2 Bulgarian leva (approximately €1).
  • As a general rule, the shareholder’s liability is limited to the amount of their capital contribution.

 

An EOOD is suitable for small and medium-sized trading businesses, startups, and sole entrepreneurs.

 

OOD

An OOD is the equivalent of a traditional limited liability company with two or more shareholders (partners).

 

Characteristics:

 

  • Minimum share capital: 2 Bulgarian leva.
  • Ownership interests are allocated according to the Articles of Association.
  • The supreme governing body is the General Meeting of Shareholders.
  • The company may have multiple directors who may act jointly or independently.

 

This is the best option for businesses established by partners or companies attracting co-investors for commercial activities.

 

AD

A joint-stock company (AD) is a more complex and large-scale corporate structure.

 

Main characteristics:

 

  • Minimum share capital: 50,000 Bulgarian leva (approximately €26,000). At least 25% must be paid before registration.
  • Shares may be either registered or bearer shares.
  • The company must establish either a one-tier or two-tier management system.
  • An annual statutory audit is mandatory.

 

This legal form is suitable for large trading networks, importers, companies planning to enter capital markets, and financial institutions.

 

Step-by-Step Procedure for Opening a Trading Company in Bulgaria

The business incorporation process is clear and well-structured. Errors in the documentation may result in the Registration Agency refusing to enter the company into the Commercial Register.

 

Choosing the Legal Form and Preparing the Documents

At this stage, the company name is selected (it must be unique and include both a Latin transliteration and the appropriate legal suffix, such as OOD).

 

The following documents are prepared:

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  • Articles of Incorporation (or Memorandum of Association);
  • Minutes of the founders’ meeting;
  • Director’s consent to appointment and a notarised specimen signature;
  • Declarations confirming the accuracy of the submitted information.

 

This stage transforms an abstract business idea into an official business project.

 

Company Registration with the Bulgarian Commercial Register

All documents are submitted to the Registration Agency for entry into the Commercial Register. The application may be submitted either in person or electronically using a lawyer’s qualified electronic signature (QES).

 

If you wish to minimise bureaucratic risks, the professionals at AA Lawrange will help you register a company in Bulgaria quickly and without your personal presence. Once the registration is completed, the company receives a unique Unified Identification Code (UIC/EIK) and becomes a fully recognised legal entity.

 

Opening a Corporate Bank Account

A special capital accumulation account is opened for depositing the share capital. Once the registration with the Commercial Register has been completed, this account is closed, and the funds are transferred to a standard current (corporate) account. Today, European banks impose strict Compliance and KYC (Know Your Customer) requirements.

 

To ensure the process goes smoothly, the experts at AA Lawrange will assist you with opening a bank account in Bulgaria by preparing the company’s business profile in accordance with the requirements of financial institutions.

 

VAT Registration and Obtaining an EORI Number (If Required)

To conduct full-scale trading activities within the EU, a company must obtain a tax identification number. VAT registration may be voluntary (at the initial stage) or mandatory once the company’s turnover reaches BGN 100,000 (approximately €51,130) within a period not exceeding 12 consecutive months.

 

If your trading activities involve countries outside the European Union, such as China, Türkiye, or the United States, you will also need to obtain a customs EORI number.

 

Organisation of Accounting and Tax Support

Bulgarian legislation requires every legal entity to maintain proper accounting records and submit regular tax reports. Even if the company is temporarily inactive, it must file nil tax returns.

 

Since trading activities involve the continuous processing of delivery notes, invoices, VAT accounting, and warehouse inventory depreciation, reliable outsourced accounting services help minimise the risk of penalties imposed by the National Revenue Agency (NRA).

 

What Documents Are Required to Open a Trading Company in Bulgaria?

The required documents depend on the founder’s status (individual or legal entity) and the method of application (in person or by power of attorney).

 

For individual founders, the following documents are required:

 

  • A valid passport (copy).
  • Proof of residential address.
  • The manager’s (director’s) notarised consent to appointment.
  • A power of attorney (if the registration process is carried out remotely).

 

For corporate founders, the following additional documents are required:

 

  • An extract from the Commercial Register of the country where the parent company is registered (containing up-to-date information on directors and the corporate structure).
  • A resolution of the parent company’s supreme governing body approving the establishment of a trading company in Bulgaria (creation of a subsidiary).
  • The parent company’s Articles of Association.

 

Important: All foreign documents must be legalised (apostilled) in the country of issuance and translated into Bulgarian by an accredited translator.

 

Taxation of Trading Companies in Bulgaria

The Bulgarian tax system is straightforward, transparent, and predictable.

 

Tax / Payment Rate Application
Corporate income tax 10% Calculated on the company’s annual net profit.
Dividend tax 5% Levied on profit distributions to non-resident individual shareholders.
Value Added Tax (VAT) 20% Standard VAT rate applicable to domestic transactions.
Reduced VAT rate 9% It applies to the hospitality business, food service establishments and restaurants, sports facilities and swimming pools, books, and essential goods for children.
Export VAT rate 0% For deliveries outside the EU, intra-union deliveries (B2B).Applies to exports outside the EU and intra-Community B2B supplies.

 

The favourable tax regime makes this jurisdiction one of the most attractive locations within the EU for structuring trading companies. In addition, Bulgaria has concluded more than 70 double taxation avoidance agreements.

 

Specific Features of Trading Through a Bulgarian Company

Conducting trading business in Bulgaria involves a number of practical aspects:

 

  • Customs clearance of goods. Goods that have been customs cleared in Bulgaria, for example imports via the Port of Burgas, can move freely to France, Germany, or Poland without additional customs clearance.
  • VAT compliance. In many intra-EU B2B transactions, the reverse charge VAT mechanism is applied.
  • Currency control. Banks may request documents confirming the origin of funds and the economic purpose of transactions as part of AML/KYC procedures.

 

Trading activity in this country provides direct access to the EU Single Market with minimal administrative barriers.

 

Common Mistakes When Opening a Trading Company in Bulgaria

Even with detailed instructions on how to register a trading company in Bulgaria, many beginner entrepreneurs make mistakes that cost time and money.

 

  • Incorrect choice of registered address. It must be a real address with the ability to receive official correspondence.
  • Attempting to open a bank account without preparation. Without a detailed business plan, information about counterparties, and logistics chains, the bank will refuse the service.
  • Ignoring reporting deadlines. Failure to submit declarations on time results in penalties.
  • Errors in transliteration of the company name and in document translations. Any inconsistency may block the registration process in the Commercial Register.

 

For a trading business, it is essential to establish administrative routines from the outset to avoid fines.

 

How Lawrange Helps You Open a Trading Company in Bulgaria

AA Lawrange has many years of experience in international corporate law and business structuring.

 

When clients approach us with the question of how to open a trading company in Bulgaria, we provide a full turnkey solution:

 

  • Professional consultations.
  • Preparation of Articles of Association, minutes, notarisation, apostille, and certified translations.
  • Remote company formation via power of attorney.
  • Banking compliance support.
  • Tax and customs registration.
  • Ongoing legal support.

 

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Engaging Lawrange allows clients to fully delegate the bureaucratic burden to professional lawyers and avoid refusals from the Bulgarian Commercial Register.

 

Conclusions

Company registration in Bulgaria is one of the most accessible, cost-effective, and efficient ways to enter the European and international commercial market. A minimal share capital requirement, a 10% corporate tax rate, developed logistics infrastructure, and clear regulations make the country highly attractive for business.

 

However, to ensure that the incorporation process does not turn into a prolonged bureaucratic procedure with bank and registry rejections, it is advisable to entrust it to professionals. Cooperation with Lawrange ensures legal compliance and a fast start for your trading business in Europe.

 

FAQ

How long does it take to register a trading company in Bulgaria?

Taking into account document preparation, translations, opening a capital account, and subsequent VAT registration, the process usually takes 3 to 4 weeks.

 

Can a trading company in Bulgaria be opened remotely?

Yes, Bulgarian law allows remote company registration. For this, you need to issue a power of attorney to Lawrange lawyers and notarise the director’s signature specimen (or certify it at a consulate in your country).

 

Is a physical office required in Bulgaria?

For company registration itself, only a registered legal address is required (which we provide). If your business plans large-scale operations, imports, and VAT registration, having a real office or warehouse is a significant advantage.

 

How much does it cost to open a trading company in Bulgaria?

It depends on the business structure, legal address services, bank account setup in specific banks, and EORI customs registration. Contact Lawrange experts for a tailored commercial offer with transparent pricing.

 

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