At a Glance: Your Options
| Type | Legal Form | Ideal For | Minimum Capital | Foreigners Allowed? |
|---|---|---|---|---|
| EOOD | Single-owner LLC | Freelancers, solo founders | €1 | Yes |
| OOD | Multi-owner LLC | Small partnerships, family business | €1 per owner | Yes |
| AD / EAD | Joint-Stock Company | Scalable ventures, investors | €25,000 | Yes |
| ET | Sole Proprietor | Local freelancers with residency | None | Usually not |
| Branch | Branch of foreign company | Branch of a foreign company | None | Yes |
EOOD — Single-Owner Limited Liability Company
What it is: A one-person LLC. You’re the sole founder and owner, with complete control.
Why it’s popular: Fast to set up, low-cost, and perfect for freelancers, consultants, digital nomads, and small online businesses.
Key Features:
- Limited liability: Your personal assets are protected
- Minimum capital: €1 (can remain deposited or withdrawn after setup)
- The founder can be a non-resident foreigner
- Corporate tax: 10%; dividend tax: 5%
Foreign-specific context:
- You don’t need Bulgarian residency
- You can appoint a proxy or lawyer via a Power of Attorney (POA)
- Requires legal address (can be virtual)
Best for: Foreign freelancers, e-commerce operators, software developers
OOD — Multi-Owner Limited Liability Company
What it is: An LLC with 2+ founders — can be individuals or legal entities, foreign or Bulgarian.
Why it’s useful:
- For small teams, joint ventures, or shared capital companies
- Each partner’s liability is limited to their contribution
Key Features:
- Flexible ownership structure (foreigners + locals)
- Profits distributed by shareholding percentage
- Minimum capital: €1 per partner
- Requires a company manager (can be one of the founders)
Foreign-specific context:
- Remote setup possible via POA
- Bulgarian co-founder not legally required
Best for: Startups with multiple founders, family businesses, joint investments
AD / EAD — Joint-Stock Company (Public or Private)
What it is: A higher-capital company form, often used for public companies, large investment projects, or ventures with complex governance.
- AD: Joint-stock company with multiple shareholders
- EAD: Single-shareholder joint-stock company (often used by holding companies)
Why use it:
- Can issue shares, raise capital
- Suitable for IPOs or private equity setups
- More complex governance (board, general meetings)
Key Features:
- Minimum capital: €25,000
- Mandatory audit and annual financial disclosure
- Annual costs and compliance requirements are higher
Foreign-specific context:
- Suitable for establishing a scalable or fund-backed business
- Can be used as part of international group structures
- Remote incorporation is possible but requires legal assistance
Best for: Tech scale-ups, international investors, regulated industries
Branch Office of a Foreign Company
What it is: An official extension of a foreign company — not a separate legal entity.
Why use it:
- Avoids double incorporation
- Maintains control under the foreign parent company
- Useful for testing or expanding into the Bulgarian market
Key Features:
- No minimum capital
- Must be registered with the Bulgarian Commercial Register
- Must maintain Bulgarian accounting and tax compliance
- Taxed as a local entity
Foreign-specific context:
- A foreign company must provide legal documents and a resolution to open a branch
- Requires translations, apostilles, and certified documents
Best for: International companies seeking local presence without full incorporation
ET — Sole Trader (Ednolichen Targovets)
What it is: A sole proprietorship, where the person and the business are legally the same.
Why it’s not ideal for foreigners:
- Requires Bulgarian permanent residency or citizenship
- Unlimited liability (you are personally responsible for debts)
- Cannot be used by legal entities or non-residents
Best for: Bulgarians running a small shop, a freelance business, or a personal brand
Not recommended for foreigners.
Choosing the Right Type: A Foreigner’s Lens
| Scenario | Recommended Type |
|---|---|
| Digital nomad, consulting remotely | EOOD |
| Startup with a Bulgarian co-founder | OOD |
| Holding company for real estate or IP | EAD |
| Foreign company hiring locally or testing the market | Branch |
| Freelancer with a Bulgarian residence card | ET (maybe) |
Legal Basics All Foreigners Should Know
- You can open a company without Bulgarian citizenship or residence.
- You must have a legal address (usually via a virtual office)
- You can appoint a representative to register on your behalf (via POA)
- You don’t need a local partner or nominee director, but you can use one if desired
- Opening a company bank account can be tricky — choose banks familiar with foreign clients
What Comes Next?
Once you choose your company type, you’ll need to:
- Draft founding documents (can be templated)
- Appoint a manager
- Provide a legal address
- Deposit capital (even if it’s just €1)
- Register with the Commercial Register (takes 2–5 business days)
Summary: What Foreigners Should Really Consider
| Factor | Tip for Foreigners |
|---|---|
| Company control | EOOD gives complete control and simplicity |
| Legal compliance | Use an accountant familiar with non-residents |
| Bank accounts | Some banks are friendlier than others (e.g., UBB, Raiffeisen) |
| Tax obligations | Flat corporate tax (10%) and dividend tax (5%) apply |
| Long-term residence | Owning a company does not automatically give you residence. |
You Will Also Like To Know About:
- How to Register a Company in Bulgaria as a Foreigner?
- Does Bulgaria have a Digital Nomad Visa for remote workers?
- How to Keep Your Company Alive — Even If You’re Abroad
- Do UK nationals need a visa to live in Bulgaria after Brexit?
Disclaimer: The information provided in this article is for general informational purposes only and does not constitute legal, tax, or financial advice. While we strive to ensure accuracy and relevance, laws and administrative practices are subject to change. Always consult a qualified legal or tax advisor before making business or residency decisions in Bulgaria. Last updated: September 2025.
