Single-Member Limited Liability Company (EOOD)
Еднолично дружество с ограничена отговорност
Company formation in Bulgaria
The EOOD is best suited for: Solo founders who want full control and simplicity, Freelancers and consultants seeking an EU entity with minimal capital, E-commerce operators targeting the EU market, Digital businesses seeking the EU's lowest corporate tax rate, Holding structures for small portfolios. Bulgaria applies a flat 10% corporate income tax rate on worldwide profits — the lowest in the EU. Dividends distributed to individuals are subject to a 5% final withholding tax. Dividends paid to EU parent companies that hold at least 10% for 2+ years are exempt under the EU Parent-Subsidiary Directive. VAT is charged at 20% (9% for tourism and hospitality). Social security contributions for employees total approximately 31–32% of gross salary, split between employer (~18–19%) and employee (~13%). Bulgaria does not have a separate municipal business tax.
- Solo founders who want full control and simplicity
- Freelancers and consultants seeking an EU entity with minimal capital
- E-commerce operators targeting the EU market
- Digital businesses seeking the EU's lowest corporate tax rate
- Holding structures for small portfolios
Key Facts
Step-by-Step Formation Process
Reserve a company name
Check name availability through the Bulgarian Commercial Register (Търговски регистър) operated by the Registry Agency. The name must be unique and not misleading. You can search the register online at brra.bg.
Prepare founding documents
Draft the articles of association (дружествен договор) or, for an EOOD, the founding act (учредителен акт). This must include the company name, registered address, scope of activity, capital amount, and details of the sole owner. Documents must be in Bulgarian and notarised.
Deposit the share capital
Open a capital deposit account (набирателна сметка) at a Bulgarian bank and deposit the minimum share capital of BGN 2. The bank issues a certificate confirming the deposit, which is required for registration. After registration, the funds can be transferred to the company's operating account.
Obtain a declaration of good standing from the manager
The appointed manager must sign a notarised declaration confirming they meet the legal requirements to hold the position (no criminal record for certain offences, no outstanding public debts, etc.) and provide a specimen signature.
Register with the Commercial Register
Submit the application to the Registry Agency (Агенция по вписванията) along with the founding act, capital deposit certificate, manager's declarations, and proof of the registered address. Applications can be filed online with a qualified electronic signature or in person. The registration fee is BGN 110 online or BGN 160 on paper.
Register for VAT (if applicable)
VAT registration is mandatory once taxable turnover exceeds BGN 100,000 in any 12-month period. Voluntary registration is available at any time and is common for B2B companies trading within the EU. Registration is done through the National Revenue Agency (НАП).
Required Documents
- Founding act (учредителен акт) — notarised
- Declaration and specimen signature of the manager — notarised
- Bank certificate confirming capital deposit
- Proof of registered office address (lease agreement or ownership document)
- Passport or national ID copy of the founder
- Declaration under Article 142 of the Commercial Act
Cost Overview
Tax Treatment
Bulgaria applies a flat 10% corporate income tax rate on worldwide profits — the lowest in the EU. Dividends distributed to individuals are subject to a 5% final withholding tax. Dividends paid to EU parent companies that hold at least 10% for 2+ years are exempt under the EU Parent-Subsidiary Directive. VAT is charged at 20% (9% for tourism and hospitality). Social security contributions for employees total approximately 31–32% of gross salary, split between employer (~18–19%) and employee (~13%). Bulgaria does not have a separate municipal business tax.
Pros & Cons
- 10% flat corporate tax — the lowest in the EU
- Minimum capital of just BGN 2 makes formation practically free
- Full EU single market access for goods and services
- Simple single-owner structure with no need for additional shareholders
- Low cost of living and business operation costs
- Growing digital infrastructure and e-government services
- 100% foreign ownership with no restrictions
- Over 70 double tax treaties in force
- Company formation cannot yet be completed fully online for non-residents
- Bulgarian language required for all official filings and documents
- Banking sector can be cautious with non-resident companies
- Bureaucracy is slower compared to Estonia or other digital-first jurisdictions
- Not yet in the Eurozone — currency is BGN (pegged to EUR at 1.95583)
- Annual financial statements must be audited if the company exceeds certain thresholds
Other Structures in Bulgaria
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Get StartedThis content is educational and does not constitute legal or tax advice. Always consult a qualified professional for your specific situation. Data last verified March 2026.