The idea of starting your own business is exciting until you face the question: “Where do I start with all these institutions?”. Bureaucracy in Bulgaria might seem intimidating, but it actually follows a strict and clear logic.
Here are the exact steps you need to go through in 2026 to work completely legally, pay the right taxes, and sleep peacefully.
Step 1: Choose a Legal Form (EOOD or Freelance Profession)
This is the most important decision in the beginning because it determines what documents you will fill out and how much tax you will pay.
- Freelance Profession: Suitable for people providing services with their personal labor (designers, consultants, manicurists, programmers). Registration is easy, and the state recognizes a percentage of expenses for which you do not need to keep invoices.
- EOOD (Single-Member Limited Liability Company): Mandatory if you are buying and reselling goods, running an online store, or hiring employees. You pay a 10% tax on the actual profit (revenue minus expenses). To make an informed choice, read our detailed comparison in Advantages and Disadvantages of an EOOD (Ltd.) and Freelancing.
Step 2: Registration (Registry Agency)
Once you have chosen the form, you must officially create it before the state.
- For EOOD: You submit documents to the Commercial Register. You need a minimum capital of 2 BGN, a reserved company name, and an escrow account in a bank of your choice. It is easiest and safest to do this with the help of a lawyer or an accountant.
- For Freelance Profession: The procedure is much lighter. You register in the BULSTAT register within 7 days of starting your activity. More details about this process can be found in The essentials for registering and accounting as a freelancer.
Step 3: Declaring to the NRA and Starting Social Security
The institutions now know your company (or profession) exists, but you need to tell them exactly when you start working and making money.
- Within 7 days of actually starting the activity (e.g., launching the website, first sale, or first contract), a special declaration for registering a self-employed person is submitted to the NRA.
- From this moment on, you owe monthly social security and health insurance contributions based on the minimum insurable income for the country, even if you have no clients in a given month.
Step 4: Bank Account and Cash Register
How will your clients pay you? This question determines whether you need a fiscal device (cash register).
- Without a cash register: You can work without one if all your clients pay exclusively via bank transfer (IBAN to IBAN) or via Postal Money Order (PPP) through a licensed courier company like Econt or Speedy.
- With a cash register: It is mandatory if you accept cash payments or standard POS terminal payments with a physical card. See more specifics in Freelancing and cash registers.
Step 5: The VAT Registration Trap
Many starting entrepreneurs think VAT registration is only done when they reach a huge turnover of tens of thousands of levs. However, there is a serious catch for small online businesses!
- If you buy advertising on Facebook, Instagram, Google, or use services from platforms like Upwork and Fiverr, you are actually receiving a service from a company outside Bulgaria.
- In this case, the law obliges you to make a special “partial” VAT registration (under Art. 97a) at least 7 days before launching your first ad. Learn how the system works in What is VAT and when do we have to register for mandatory VAT?.
Summary
Starting a business is not scary when you follow the steps consistently. The best investment you can make on “Day 1” is to consult a good accountant. They will help you choose the cheapest and most suitable form for your specific idea and protect you from the hidden traps of the laws.
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