Bulgaria offers one of Europe’s most cost-effective routes for company formation in 2026, especially for EOODs (single-member limited liability companies), with total startup costs typically under €1,000 for remote setups by foreigners. This affordability stems from low minimum capital (€1 equivalent), streamlined electronic registration, and a business-friendly 10% corporate tax rate. Remote options via Power of Attorney make it accessible without travel, ideal for your import-export or online business clients.
Detailed EOOD Cost Breakdown
EOODs are the go-to for solo founders due to simplicity, full foreign ownership, and no residency requirements. Here’s an expanded table with 2026 pricing based on standard providers, separating one-off vs. recurring costs. Totals assume a clean setup (no complex activities like finance).
Grand Total Year 1: €800-2,000 (one-off + 12 months ops). Scales down for micro-businesses.
Step-by-Step Formation Process (With Costs)
- Name Check (Free, 1 day): Search Trade Register (free). Reserve unique name online.
- Prepare Docs (€200-500, 2-3 days): Articles (capital, activity codes NACE), PoA if remote. Notarize.
- Deposit Capital (€1 + €0-20, 1 day): Bank letter suffices—no blocked account.
- File Electronically (€28-60, 3-7 days): Commercial Register portal. Approval = BULSTAT issuance.
- Post-Reg (Free-€100): VAT if turnover >€50K; bank fully activates.
Total timeline: 7-14 days remote. Euro adoption (expected 2026) simplifies banking—no currency risk.
Hidden & Optional Costs
- Signature Specimen: €10-20 (notary).
- Company Seal: €15-30 (optional post-digital shift).
- Travel (Avoidable): Sofia notary €200+ flights.
- Complex Activities: Finance/insurance add €200-500 licenses.
- Ready-Made Companies: €1,500-3,000 (instant, clean history).
- Tax Consultation: €100/hour for optimizations (e.g., IP holding).
Ongoing Annual Expenses (Year 2+)
| Expense | EUR/Year | Notes |
|---|---|---|
| Accounting & Reports | 1,000-2,500 | Declares to NRA/NSSI. |
| Office Renewal | 120-360 | Virtual fine. |
| Audit (If Needed) | 500+ | Only >€2M turnover. |
| Total | 1,620-3,360 | Predictable low. |
10% corp tax + 5-10% dividend tax beats most EU. No wealth tax; IP Box regime for software (5% effective).
Why Under €1,000 Total Works for Foreigners
- No Residency: 100% foreign-owned EOODs standard.
- EU Access: Single market, Schengen soon.
- Remote Full: PoA lets lawyers file. E-signatures widespread.
- Bundles: Providers like yours offer €600-900 packages (docs + address + 3 months accounting).
- 2026 Updates: Digital Registry cuts paper fees 20%; euro stabilizes costs.
Example: UK freelancer registers EOOD for dropshipping—€720 total (your service), earns €50K, pays €5K tax.
EOOD vs. Alternatives
| Type | Min Capital | Members | Cost | Best For |
|---|---|---|---|---|
| EOOD | €1 | 1 | €650 | Solos, remote. |
| OOD | €1 | 2+ | €750 | Partnerships. |
| AD (JSC) | €25K | 1+ | €2K+ | Investors. |
| Sole Trader | None | 1 | €0 | No liability shield. |
EOOD wins for 90% clients—liability capped at capital.
Tax & Compliance Optimization
- Register VAT early for refunds (threshold €50K).
- NSSI social contributions: €50-100/month if employing.
- Annual financial statement: €150.
Pro Tip: Use for EU holding—dividends tax-free intra-group.
Common Pitfalls (Save €200+)
- untranslated docs delay 2 weeks.
- Wrong NACE code = refiling (€50).
- Skip virtual address = fines.
- Ignore accounting = €500 penalties.
Ready to Start? Checklist
- Passport scan.
- Activity description.
- PoA template.
- €700 budget.
