How to Register an Online Business in Bulgaria: Steps and Costs

Starting an online business in Bulgaria offers a number of advantages, including a competitive tax system, access to a skilled workforce, and the ability to tap into the European Union’s single market. The process of registering an online business in Bulgaria is relatively straightforward, but it requires attention to detail to ensure compliance with the country’s laws and regulations. Whether you’re setting up a small e-commerce shop or a large-scale online service, understanding the steps involved and the costs of registration is essential to ensuring that your business is set up for success.

This article provides a detailed guide on how to register an online business in Bulgaria, the costs associated with the process, and how B2B Hub can assist in streamlining your business registration.

Understanding the Types of Online Businesses in Bulgaria

Before registering an online business in Bulgaria, you must first determine the legal form of your business. The most common forms for businesses in Bulgaria are:

Sole Proprietorship (Individual Merchant): A business owned and run by an individual who assumes full responsibility for the business’s debts and obligations. This is suitable for small-scale online businesses.
Limited Liability Company (LLC): A more complex structure, suitable for small to medium-sized businesses. An LLC offers limited liability to its owners and is one of the most popular options for companies operating in Bulgaria.
Joint-Stock Company (JSC): A company structure suitable for larger enterprises that plan to issue shares or go public. This is less common for online businesses but may be suitable for larger operations.

For most online businesses, a Limited Liability Company (LLC) is the preferred choice because it provides flexibility, limited liability protection, and is relatively easy to establish and manage.

Choosing a Company Name

Once you have decided on the legal structure of your business, the next step is to choose a name for your online business. The company name must be unique and must not infringe on any existing trademarks or business names.

In Bulgaria, you can check the availability of your chosen name through the Commercial Register. The name must end with an appropriate designation for the legal entity type. For example, a Limited Liability Company (LLC) must include the designation “OOD”, which translates to “Limited Liability Company” in English.

3. Registering Your Online Business

To officially register your online business in Bulgaria, you will need to follow these steps:

Step 1: Preparation of Company Documents

Company Charter and Articles of Association: These documents outline the company’s goals, internal structure, and operations. For an LLC, you will need to prepare the Articles of Association, which specify the company’s rules, structure, and member obligations.
Proof of Legal Address: Your online business must have a legal registered address in Bulgaria. This address must be provided to the Bulgarian Commercial Register.
Shareholder and Director Information: You will need to provide personal details of the shareholders and the company’s directors. If you are the sole owner, you will be both the shareholder and the director. The minimum number of shareholders for an LLC is one, and the minimum number of directors is one.

Step 2: Company Registration

Submit Your Application: You will need to submit your company registration application to the Bulgarian Commercial Register. The application includes all the required documents, such as the Articles of Association, proof of address, shareholder and director details, and other required legal documents.
Company Name Reservation: If you are registering a business name that is unique and hasn’t been taken, you can reserve the name in advance by filing an application with the Bulgarian Commercial Register.

Step 3: Tax Registration

Once your company is registered, you must also register with the Bulgarian National Revenue Agency (NRA) for tax purposes. This involves obtaining a VAT number (if your business revenue exceeds a certain threshold) and registering for corporate tax purposes. Bulgaria has a flat corporate tax rate of 10%, which is one of the lowest rates in the European Union, making it an attractive location for online businesses.

VAT Registration: If your online business sells goods or services that are taxable, you will need to register for VAT once your turnover exceeds the annual threshold of €50,000. The standard VAT rate in Bulgaria is 20%.
Corporate Tax Registration: After registering for VAT, your business must also be registered for corporate taxes with the NRA.

Step 4: Open a Business Bank Account

To manage your online business finances, you will need to open a business bank account in Bulgaria. This account will be used to process payments, manage transactions, and pay any taxes or fees associated with your business.

You will need to provide the bank with the following documentation:

Company registration documents.
Proof of identity of the business owners and directors.
Business address proof.
A business plan may also be requested by some banks.

Required Documents for Company Registration in Bulgaria

To register your online business in Bulgaria, the following documents are typically required:

Company Charter (or Articles of Association): A document that outlines the structure, purpose, and internal management of your company.
Proof of Address: A valid Bulgarian address where your business will be legally registered.
Shareholder and Director Information: Identification details of the business owner(s) and directors.
Valid Passport Copies: For foreign shareholders or directors, a copy of your passport will be required.
Bank Reference Letter: In some cases, a reference letter from your bank may be needed.

Costs of Registering an Online Business in Bulgaria

The cost of registering a company in Bulgaria depends on several factors, such as the type of business and its legal structure. Below are some of the typical costs involved in the registration process:

Registration Fee: The Bulgarian Commercial Register charges a fee for company registration, which generally ranges from €50 to €100.
Notary Fees: If any documents require notarization (e.g., shareholder agreements, company charter), additional fees will be incurred.
Legal and Administrative Fees: Depending on the complexity of your business, you may need to hire a legal consultant or accountant to ensure that all your documents are correctly prepared and submitted. These services typically cost between €200 to €500.
Bank Account Setup: Banks may charge a nominal fee to open a business account.

How B2B Hub Can Help

Starting an online business in Bulgaria may seem like a daunting task, but with the right guidance and support, the process can be quick and straightforward. B2B Hub specializes in company formation in Bulgaria and provides comprehensive services to help you navigate the complexities of setting up your online business.

Our services include:

Business registration: We handle all the paperwork and filing with the Bulgarian Commercial Register, ensuring your company is set up properly.
Tax registration: We help you register for VAT and corporate taxes with the National Revenue Agency, ensuring compliance with Bulgarian tax laws.
Bank account setup: We assist you in opening a business bank account in Bulgaria.
Legal and financial advisory: Our team of experts provides legal advice and financial consultation to help you manage your online business effectively.

With B2B Hub, you can focus on growing your online business while we handle the administrative and legal tasks, making the process seamless and hassle-free.

B2B Hub offers comprehensive company formation and corporate services in any jurisdiction of your choice.

For inquiries, please contact us at +44 770 018 3107, visit our website at b2bhub.ltd, or send us an email at reg@b2bhub.ltd.