Opening a business bank account in Bulgaria: EOOD, OOD or branch

Company forms that open a Bulgarian account

A business bank account in Bulgaria is the euro account of a company entered in the Commercial Register, usually an EOOD or an OOD, opened once the bank has checked directors, shareholders and the real activity. Foreign founders mostly choose the single-member EOOD or the OOD with several members, the AD suits heavier projects, and a foreign company may register a branch.

Most foreign founders choose the EOOD, a single-member limited liability company, or the OOD with several members; the AD joint-stock company suits heavier projects. A foreign company may also register a branch in the Commercial Register.

Paying in EOOD capital before entry in the Bulgarian register

For an EOOD or OOD the capital can be nominal, but it is usually paid into a blocked account before entry in the register kept by the Registry Agency. The bank then issues a deposit certificate attached to the registration application.

What the bank checks on the company and its beneficial owners

The relationship manager reviews the Commercial Register extract, which also lists beneficial owners, then identifies each manager and every member above 25%. An organisation chart, a business plan and the origin of the invested capital are requested.

Non-resident manager: attendance and powers of attorney

The manager often comes to the branch to sign; otherwise a notarised and legalised or apostilled power of attorney is reviewed case by case. For a business account in Bulgaria, Bulgarian banks rarely accept a fully remote opening for a company owned by non-residents.

10% corporate tax and 5% dividend tax: what the banker expects

With a 10% corporate tax and a 5% withholding on dividends paid to individuals, Bulgaria attracts purely tax-driven structures. Banks therefore ask for evidence of local activity: an office, staff, contracts or invoices.

Bulgarian VAT and the EIK number

Every company receives a unique identification code, the EIK, which also serves as its tax reference; VAT registration adds the BG prefix. The bank checks that this number, the invoices issued and the incoming flows are consistent.

Euro and foreign currency accounts for exporters

Exporters with a company account in Bulgaria keep a main euro account for European customers via SEPA and accounts in dollars or other currencies for non-EU markets. Payments from sensitive countries trigger requests for contracts and transport documents.

Card terminals for Black Sea hotels and online shops

Shops, coastal hotels and online stores ask for payment terminals or an e-commerce acquiring contract. The bank then reviews expected volumes, chargeback risk and, for online sales, the website’s terms and conditions.

Timelines and maintenance fees at a local bank

At Fibank, a foreign-owned company’s file goes through a compliance review before activation; allow several days, longer if a member lives outside the EU. Maintenance, transfer and online banking fees appear in the tariff for legal entities.

Bookkeeping, the National Revenue Agency and members’ duties

A Bulgarian company keeps local books, files annual accounts with the register and declares its tax to the National Revenue Agency. A member resident in France separately declares dividends received and, if a signatory on the account, files form 3916.

Documents to gather for a business bank account in Bulgaria

The file starts with a recent extract from the Commercial Register, the articles or deed of incorporation and the company's EIK number. The bank then asks for the identity of each manager and of each member holding more than 25%, together with their proof of address. For a company owned by legal entities, the full ownership chart down to the individuals is generally required.

Depending on the bank, foreign documents must be translated into Bulgarian by a recognised translator, legalised or apostilled. If the manager cannot travel, a notarised power of attorney is reviewed case by case. Find out about the legalisation formalities in advance, because they lengthen the timetable when they are done in a hurry and in the wrong order.

Finally, the bank wants to understand the activity: business plan, contracts, invoices, an office lease, a list of employees or subcontractors. The origin of the invested capital must be justified. In practice, the review time depends on the institution and the profile of the members, and no bank can guarantee that it will open a Bulgarian company account before studying the file.

Questions to ask before opening a company account in Bulgaria

First ask for the details of fees: opening, account maintenance, SEPA transfers, foreign-currency transfers, company cards and online banking. Have the bank specify the number of authorised users, the possibility of giving separate rights to the manager and the accountant, and the electronic signature arrangements for a director who lives abroad.

Ask the bank about its policy towards companies whose members are non-residents. Some require a first visit to a branch, others accept a power of attorney. Ask which proofs of local activity it expects and how quickly it gives its decision. An adviser who answers these questions precisely makes it easier to prepare the file.

Lastly, raise the question of incoming payments: payment terminals, an online acquiring contract, foreign-currency accounts for export and crediting times for international transfers. These elements determine the daily running of the company. Note the answers in writing in order to compare several institutions on the same basis before deciding.

Common mistakes with a Bulgarian company account

The most widespread mistake is to present a company with no visible link to Bulgaria: no office, no employees, no local customer or supplier. Banks know that the country attracts structures driven by taxation, and they require proof of real activity. A purely formal registered office rarely convinces the compliance department.

Another fault is inconsistent information between the Commercial Register, the articles and the statements given to the bank. A misspelled member, a different address or a holding percentage that does not match is enough to trigger questions. Check each document before sending it and correct any gaps in the register before asking to open the account.

Finally, do not underestimate the manager's role. A director who cannot be reached, who does not answer requests for documents or who cannot sign blocks the file. Name an available person, inform the bank of any change of director or member and keep the evidence of each change. This vigilance avoids temporary account freezes.

CRS and FATCA for a business account in Bulgaria and checks

Bulgarian banks apply the rules on automatic exchange of information. They collect the tax residence of the company and of its beneficial owners through a self-certification and pass the required data to the tax administration, which shares it with the countries of residence. For US taxpayers, FATCA adds its own obligations.

The members remain subject to the rules of their own country when declaring the dividends received, their holding and, depending on the case, the accounts on which they are signatories. A member resident in France, for example, files form 3916 where the rule requires it. These details vary by country, and a local tax adviser helps clarify them.

Before acting, check the current conditions with the bank, the Commercial Register and the National Revenue Agency. Rates, thresholds and requirements change, and the information on this page is general. It does not guarantee that the account will be opened and does not replace the advice of a professional who knows your situation.