For ambitious Pakistani entrepreneurs, Europe usually means high costs and heavy bureaucracy. Bulgaria breaks that mould. You can register a Bulgarian company (an EOOD) with just €1 of capital, often remotely in a few days, then run it under the EU’s lowest 10% corporate tax. And here’s the strategic part: owning and managing that company can become your route to EU residency, and over time, to permanent residence and a Bulgarian passport. This complete 2027/2028 guide shows you exactly how to start a business in Bulgaria from Pakistan, the right way.
We’ll cover why Bulgaria is so founder-friendly, what an EOOD is, the company types, the two-part process (registering the company, then getting residency), the tax advantages, real costs, the crucial “real activity” rule, and the refusal reasons to avoid. Let’s build your EU business.
Why Start a Business in Bulgaria?
Bulgaria has quietly become one of the smartest places in the EU to base a company. Here’s why entrepreneurs choose it:
- Lowest EU corporate tax a flat 10% on profits, with dividends taxed at just 5%.
- €1 minimum capital the symbolic minimum to register an EOOD.
- 100% foreign ownership no Bulgarian partner or citizenship needed to own the company.
- Fast, often remote setup registration typically takes just 1 to 3 working days.
- EU + Schengen + euro full EU market access, Schengen mobility, and euro currency since 2026.
- A route to residency & a passport your company can lead to residence, PR, and citizenship.
What Is an EOOD? (Bulgaria’s Favourite Company)
The EOOD is the single-member limited liability company, the most popular choice for solo foreign founders. Here’s what defines it:
- Single owner you are the sole shareholder and can appoint yourself as manager.
- €1 minimum capital the symbolic minimum share capital (formerly BGN 2, before the euro).
- Limited liability your personal assets are protected; liability is limited to the company.
- 100% foreign-owned Bulgarian company law makes no distinction between EU and non-EU founders.
- Best for consultants, e-commerce, IT, freelancers, and small-to-medium businesses.
Bulgarian Company Types Compared
You can choose from several structures. For most Pakistani founders, the EOOD is the natural fit:
| Type | Owners | Min capital | Best for |
|---|---|---|---|
| EOOD | Single owner | ~€1 | Solo founders, consultants, IT, e-commerce |
| OOD | Two or more | ~€1 | Partnerships |
| AD (joint-stock) | Multiple/investors | ~€25,500 | Holdings, scale-ups, larger operations |
Part 1: How to Register Your Bulgarian Company
Register the EOOD with the Commercial Register
The company itself can usually be set up remotely and quickly. Here’s the track.
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Choose your structure & name
Select an EOOD (single owner) or OOD (partners), and check your company name is available.
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Draft & notarise documents; declare the UBO
Prepare the incorporation documents and declare the Ultimate Beneficial Owner (required under EU anti-money-laundering rules).
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Deposit the capital & file with the Commercial Register
Deposit the minimum €1 capital, then file electronically via the e-Trade Register portal (state fee around BGN 110 / €56).
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Get approved in 1 to 3 days
The Commercial Register typically reviews and approves your company within 1 to 3 working days.
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Complete post-registration steps
Register with the National Revenue Agency (NRA) for corporate tax, open a business bank account, appoint an accountant, and register for VAT if required.
Part 2: How to Get Residency as a Business Owner
From company owner to Bulgarian resident
Once your company exists, you apply for residence as its manager or owner, under the Foreigners Act.
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Apply for a Type D visa in Pakistan
Apply at the Bulgarian Embassy in Islamabad on the basis of being the manager or owner of your Bulgarian company (fee ~€100).
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Enter Bulgaria & apply for a residence permit
Travel to Bulgaria and apply for your residence permit at the Migration Directorate (processing around 2 to 4 weeks).
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Receive your 1-year residence card
Your residence permit is issued for up to one year, renewable annually as long as your business remains active.
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Renew, scale & build toward PR
Keep your company active, renew annually, and after five years pursue permanent residence, then citizenship.
Want a done-for-you Bulgaria company setup?
From registering your EOOD to securing your Type D residency, the details matter. Westside Visa maps your whole plan, entity, tax, banking, and residence, so you start right and stay compliant.
The 10% Tax Advantage (and Smart Structuring)
Bulgaria’s tax regime is the real magnet for entrepreneurs. Here’s how it works:
- 10% flat corporate tax the lowest in the EU, applied to company profits.
- 5% dividend tax when you distribute profits to yourself as the owner.
- Smart structuring many owners pay themselves a small salary (~€620/month, giving healthcare and pension) and take the rest as dividends.
- Effective rate advantage the combined structure keeps your overall tax remarkably low versus Western Europe.
Want to structure your Bulgarian company for the lowest tax?
Salary vs dividends, VAT timing, and residence compliance all affect your bottom line. Westside Visa helps you set up smartly from day one, legally and efficiently.
Costs & Fees to Start a Bulgarian Company
Starting up is refreshingly affordable. Here’s what to budget for:
| Item | Approximate cost |
|---|---|
| Minimum share capital (EOOD) | ~€1 |
| Commercial Register e-filing fee | ~BGN 110 (~€56) |
| Type D visa (residence) | ~€100 |
| Residence permit + ID card (in Bulgaria) | ~€150 to €300 |
| Corporate tax | 10% flat |
| Dividend tax | 5% |
The “Real Activity” Rule (Don’t Skip This)
This is the single most important 2026-onward change, and where many business-residence applications fail:
- Your company must be genuinely active the amended Foreigners Act prioritises real economic contribution.
- Verifiable activity is required turnover, or hiring, or clear business operations, not a dormant shell.
- Inactive companies get flagged zero turnover raises red flags at the Migration Directorate for residence.
- Some routes require hires certain investment/residency paths expect the owner to employ Bulgarian staff.
Path to Permanent Residence & Citizenship
Your business isn’t just a company, it’s the start of a long-term EU future:
- 1-year renewable residence as an active company manager/owner.
- Permanent residence after 5 years of continuous, substantive residence.
- Citizenship after 5 more years plus a B1 Bulgarian language test.
- An EU passport live, work, and study anywhere in the EU.
Business Residency Refusal Reasons (and How to Avoid Them)
Business-based residence applications fail for avoidable reasons. Fix these first:
Inactive company / zero turnover
A dormant company with no real activity gets flagged, and won’t sustain your residence.
Fix it first: Run a genuine business, invoice for services, or hire part-time to show real activity.
Apostille & document errors
Foreign documents that aren’t correctly apostilled and translated cause rejections.
Fix it first: Apostille everything non-English and use certified sworn Bulgarian translators.
Bank onboarding & source-of-funds
Banks can delay or refuse accounts without a clear source-of-funds explanation.
Fix it first: Choose an established bank and prepare a clear source-of-funds letter upfront.
Business model not aligned
Registering before your address, VAT, banking, and real model are aligned causes delays.
Fix it first: Align your registered address, VAT plan, banking, and business model before registering.
Assuming company = residence
Owning a company alone doesn’t grant residence; you still need the Type D route done correctly.
Fix it first: Apply for the Type D visa as manager/owner and complete the residence steps properly.
Weak or inconsistent funds
Sudden deposits or a thin financial picture raise doubt at the residence stage.
Fix it first: Show genuine, consistent funds and a credible business plan.
Quick Facts: Starting a Business in Bulgaria 2027/2028
Bulgaria Business & EOOD Key Facts
How Westside Visa Helps You Start a Business in Bulgaria
Here’s the honest truth: registering a Bulgarian company is genuinely easy, but turning it into secure EU residency is where the real skill lies. Owning a company doesn’t grant residence; you need the right entity, a real active business, flawless apostilled documents, a working bank account, and a correctly-built Type D application. Getting all of that aligned, and keeping it compliant year after year, is exactly where an experienced partner protects your investment. That’s where we come in.
At Westside Visa, our consultants in DHA Lahore help Pakistani entrepreneurs build businesses and EU residency in Bulgaria for 2027/2028. We help you:
- Choose the right structure EOOD, OOD, or AD, matched to your business.
- Register your company documents, UBO declaration, Commercial Register filing.
- Set up tax & banking NRA registration, VAT timing, bank onboarding, source-of-funds.
- Secure your Type D residency as manager/owner, with a compliant, refusal-proof file.
- Meet the “real activity” rule so your company sustains your residence.
- Plan for PR & citizenship your long-term EU future.
From your company name to your residence card, and onward to permanent residence, we make sure every piece fits, so your Bulgarian business becomes a real EU foothold, not a costly mistake. Think of us as your teammate, experienced, transparent, and fully on your side.
Build Your EU Business in Bulgaria
A €1 company, 10% tax, and a route to an EU passport, it’s genuinely within reach. Let Westside Visa guide your Bulgaria business setup, from EOOD to residency. Book your free consultation today.
Frequently Asked Questions
Can a Pakistani citizen register a company in Bulgaria? +
Yes. Any person of any nationality can register an EOOD (single-member limited liability company) in Bulgaria, with 100% foreign ownership and no citizenship or residency requirement, beyond the symbolic €1 minimum capital. Bulgarian company law makes no distinction between EU and non-EU founders. However, owning the company does not by itself give you the right to live in Bulgaria, that requires a separate Type D residence route as manager or owner.
Does owning a Bulgarian company give me residency? +
Not automatically. Registering a company and getting residence are two separate things. To live in Bulgaria, you apply for a Type D visa as the manager or owner of your company, then a residence permit at the Migration Directorate. Crucially, since the 2026 rules, your residence depends on your company showing real, verifiable activity (turnover or hires), a dormant company will not sustain your residence.
How much does it cost to start a company in Bulgaria? +
The company itself is cheap to register: about €1 minimum capital plus roughly BGN 110 (~€56) for the Commercial Register e-filing. For residence, budget ~€100 for the Type D visa and ~€150 to €300 for the residence permit and ID card in Bulgaria, plus accountant fees. Corporate tax is a flat 10% and dividends 5%. Figures update, so confirm current amounts.
How long does it take to register a Bulgarian company? +
The Commercial Register typically reviews and approves a new EOOD within 1 to 3 working days, and much of the process can be done remotely. After that, you complete post-registration steps (tax registration, bank account, VAT if needed). The residence side (Type D visa plus residence permit) takes longer, plan several weeks overall, and start early.
What is the “real activity” rule for business residence? +
Since the amended Foreigners Act (2026), Bulgaria prioritises genuine economic contribution. Your company must show verifiable activity, real turnover, invoices, or employees, to support your residence. A dormant, zero-turnover company gets flagged by the Migration Directorate and won’t sustain your residence permit. This means you should plan a genuine, operating business from day one, not just a paper company.
Can my Bulgarian business lead to an EU passport? +
Yes, over time. Your business gives you a Type D residence permit (renewable annually while your company is active). After five years of continuous, substantive residence you can apply for permanent residence, and after five more years, for Bulgarian citizenship (which requires a B1 Bulgarian language test). Bulgarian citizenship is EU citizenship, with the right to live, work, and study anywhere in the EU.
Does Westside Visa help set up a business in Bulgaria? +
Yes we help you choose the right structure (EOOD/OOD/AD), register your company (documents, UBO, Commercial Register), set up tax and banking (NRA, VAT, source-of-funds), secure your Type D residency as manager/owner, meet the “real activity” rule, and plan for PR and citizenship. Contact us to plan your Bulgaria business.
Explore More Bulgaria Guides
Plan your full journey to building a life in Bulgaria:
- Bulgaria permanent residence — the 5-year path to settling.
- Business & management in Bulgaria — study and manager careers.
- IT jobs in Bulgaria (EU Blue Card) — the tech work route.
- Study in Bulgaria (Type D) — the student route.
- Contact Westside Visa — book your free consultation.
Ready to start your Bulgaria business for 2027/2028?
A €1 EU company with 10% tax and a route to a passport is closer than you think. Westside Visa guides you from EOOD to residency, with honest, expert advice you can trust.
Disclaimer: This blog is general information only and not official, legal, tax, or business advice. Bulgarian company formation (EOOD/OOD/AD), corporate and dividend tax rates, VAT thresholds, the “real activity”/verifiable-activity residence requirements, Type D and residence-permit rules, fees, and the path to PR and citizenship change and vary by case, and were correct at the time of writing for the 2027/2028 period. Figures update yearly. Approval and tax treatment rest solely with the Bulgarian authorities (Commercial Register, National Revenue Agency, Migration Directorate). Always confirm current requirements on official sources such as the Bulgarian Ministry of Foreign Affairs (mfa.bg) and seek personalised legal, tax, and immigration guidance from Westside Visa before proceeding.
