Opening a Company in Bulgaria for Israelis in 2026: EOOD or OOD, Minimum Capital in Euros, Steps, Costs and Obligations

Bulgaria attracts Israeli companies and entrepreneurs with its 10% corporate tax, EU membership and, since 1 January 2026, membership of the euro area as well. This guide explains which form of incorporation suits an Israeli owner, what the registration process looks like in practice, what needs to be prepared in Israel and what the ongoing obligations are once the company is set up.

1Which company form suits an Israeli in Bulgaria?

In most cases, a limited liability company: an EOOD (ЕООД) when there is one shareholder, or an OOD (ООД) when there are two or more. A joint-stock company (AD) is suited mainly to large-scale activity, broad capital raising or regulated sectors where the law requires it.

When the purpose is to hold land, there is an additional consideration: an Israeli may not acquire land in Bulgaria in his own name, but a Bulgarian company that he owns may. Details are in the guide owning land in Bulgaria through a Bulgarian company.

2What changed in the minimum capital with the switch to the euro?

As of November 2026, the minimum capital is one euro for an OOD and an EOOD, with a nominal value of at least one cent per share, and 25,000 euros for a joint-stock company, according to professional summaries of the Bulgarian Commerce Act. The capital was redefined in euros because the euro has been Bulgaria's official currency since 1 January 2026, at a fixed conversion rate of 1.95583 leva to the euro, set by Council Regulation (EU) 2025/1409.

For companies that were already registered, the Registry Agency converted the registered capital to euros on its own initiative, without any need to inject money and without a capital increase or reduction procedure. However, the company's articles of association must be updated to the euro amount and the updated text filed with the next application to the register. More background is in the guide Bulgaria in the euro area.

3What are the steps for registering a company in Bulgaria?

Registration takes place in the Commercial Register and Register of Non-Profit Legal Entities, run by the Registry Agency (Агенция по вписванията). Once the documents are ready, processing by the register usually takes a few days.

1. Name check: checking that the name is available in the register and, if desired, reserving the name for a short period.
2. Constitutional documents: a deed of incorporation (for an EOOD) or a memorandum of association (for an OOD), setting out the partners, the capital, the manager and his powers, the fields of activity and the rules for transferring shares.
3. Appointing a manager: the manager's consent and a notarised specimen signature.
4. Registered address: an office address in Bulgaria, to which official notices will be sent.
5. Declarations: declarations by the partners and the manager, including a declaration of the ultimate beneficial owner (UBO), under the Measures Against Money Laundering Act.
6. Paying in the capital: deposit into a Bulgarian bank account and obtaining a bank certificate, where required by the amount of capital and the method of formation.
7. Filing with the register: online with a qualified electronic signature, or on paper. On registration the company receives a unique identification code (ЕИК), which also serves as its tax identification number.
8. After registration: opening an operating bank account, appointing an accountant, VAT registration if required, and registering employees if there will be any.

4Which documents need to be prepared in Israel?

Israel and Bulgaria are parties to the Hague Convention Abolishing the Requirement of Legalisation for Foreign Public Documents, so an Israeli document usually needs an apostille and a Bulgarian translation instead of consular legalisation.

• Individual shareholder: a valid passport and, where necessary, a certified translation.
• An Israeli company as shareholder: a certificate of incorporation, a current company extract from the Israeli Registrar of Companies, and a board resolution approving the formation of the Bulgarian company and appointing an authorised signatory, all with an apostille and translation.
• Notarised power of attorney: if none of the owners comes to Bulgaria, a specific power of attorney to carry out the formation, signed before a notary in Israel, with an apostille and translation.
• Ownership structure documents: an ownership chart up to the ultimate controlling owner, which the bank and the accountant will require in any case.

5Can a company in Bulgaria be opened remotely, from Israel?

Yes. Filing with the register can be done online with a qualified electronic signature, or by an attorney-in-fact in Bulgaria on the basis of a notarised power of attorney from Israel. The register's review is strict, and a defect in the power of attorney or the translation may lead to refusal and refiling.

The part that is harder to do remotely is opening the bank account. Bulgarian banks apply strict know-your-customer procedures to owners from outside the EU, and some ask for the personal presence of the manager or the controlling owner.

6How much does it cost to open a company in Bulgaria, and how long does it take?

As of November 2026, the formation itself is relatively cheap and quick, and the Register usually processes the filing within a few working days. The state fee for registering a limited liability company is relatively low, and online filing is cheaper than paper filing. The main cost is professional fees, translations, notarisations and apostilles in Israel. The current Registry Agency tariff should be checked at the time of filing, as it has been converted from leva to euros.

In terms of timing, the longest stage is usually the preparation in Israel: issuing extracts, signing before a notary, apostille and translation. After filing, the register's processing usually takes a few working days.

7Who can manage the company, and is a Bulgarian manager needed?

The law does not require the manager to be a Bulgarian citizen or resident, and an Israeli manager is an accepted option. However, such an appointment does not confer a right to live or work in Bulgaria, and a company whose decisions are all made in Israel may be treated in Israel as an Israeli-resident company for tax purposes.

8How do you open a bank account for the company?

The account is opened with a Bulgarian bank after registration, through a full know-your-customer process, and the bank sometimes asks for personal attendance. The bank will usually ask for the registration documents, details of the manager and shareholders, proof of the source of funds, a description of the planned activity and the identity of the main customers and suppliers. When the shareholder is an Israeli company, the bank will also ask for the parent company's documents and the ownership chain up to the ultimate individual.

• Prepare an organised know-your-customer file in English or Bulgarian in advance.
• Expect questions about the connection to Israel and about transfers of money between the countries.
• Check the initial capital transfer separately with the Israeli bank, to avoid delays. See the guide to transfer delays and source of funds.

9What are the company's obligations after registration?

In practice, from day one a Bulgarian accountant is needed to connect the company to the systems of the National Revenue Agency (NRA), keep the books and file the returns. Details on tax and on transferring profits to Israel are in the guide taxation in Bulgaria and the guide Israel's tax treaties.

10What must be reported in Israel about a Bulgarian company?

An Israeli resident who holds a foreign company may be required to report the holding, for example on Form 150, and in an annual return reporting dividends and profits. Bulgaria's corporate tax, 10% according to PwC as of November 2026, is below 15%, so a company whose income is mostly passive, such as rent, interest or royalties, may meet the conditions for a controlled foreign company (CFC) under section 75B of the Israeli Income Tax Ordinance.

The practical result: before formation, it is worth coordinating the structure with an Israeli accountant, and not only with the Bulgarian accountant. An overall view of the Israeli side is in the guide the Israeli side of a property abroad.

11What should be checked before starting?

1. Define the company's purpose: commercial activity, a subsidiary of an Israeli company, holding a property or a project.
2. Choose between an EOOD and an OOD according to the number of partners, and prepare a founders' agreement where there is more than one partner.
3. Decide who will manage and where decisions will be made, in coordination with an Israeli tax adviser.
4. Prepare Israeli documents with an apostille and translation, and a power of attorney if you are not travelling.
5. Coordinate the capital transfer in advance with a bank in Bulgaria and with the bank in Israel.
6. Appoint a Bulgarian accountant and build a calendar of reporting deadlines in both countries.

This guide provides general information only, and every case requires a specific review of Bulgarian and Israeli law.

More on doing business in Bulgaria: Corporate tax and transferring profits to Israel from Bulgaria · An Israeli company operating in Bulgaria · Commercial disputes and litigation in Bulgaria · Comparison of 8 countries · All guides for companies and businesses

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