Set up a Sole Trader in Bulgaria

A sole trader in Bulgaria, also known as sole proprietorship or ET, represents one of the most common business structures in this area. This type of business structure in Bulgaria has full ownership from an individual who also has management responsibilities within the company. Below, our specialized agents for opening a company in Bulgaria offer a brief guide on sole trader’s opening requirements, documentation, benefits and more.

How to establish a sole trader in Bulgaria

To successfully register a sole proprietorship in Bulgaria, there are some essential steps to follow in order to comply with all the Bulgarian regulations:

1. The registration step: firstly, Bulgarian citizens and also foreigners who own a Bulgarian residency permit and plan to open a sole trader must begin with signing on to the Registry Agency of the Bulgarian Ministry of Justice, also known as the Commercial Registry;
2. Documents preparation: business owners who plan to establish a sole proprietorship in Bulgaria must prepare essential documents required by the authorities;
3. Choosing the sole trader’s name;
4. Tax registration, which requires filing annual income tax per the applicable rate as a sole trader in Bulgaria.

Documents to set up a sole proprietorship in Bulgaria

Following the main requirements to open a sole trader in Bulgaria, documents requested in order to start this business structure must include:

• filled incorporation form;
• Bulgarian business ID;
• name of the business approved;
• identity documents of the owner – ID or passport;
• official proof of opening a bank account in Bulgaria;
• declaration of not being bankrupt;
• official signature of the owner.

Our specialists in company incorporation in Bulgaria can offer additional support in preparing and filing these documents in order to establish a sole trader. We can also help you establish a company in France, through our local affiliates. In France the incorporation process lasts 2 weeks compared to 3 days in Bulgaria.

Requirements and taxation of sole traders in Bulgaria

Although setting up a sole trader in Bulgaria is an effective and quick process, after registering the sole proprietorship, there are some additional requirements to consider. Moreover, it is important, as a Bulgarian sole trader, to have up-to-date information regarding taxation of this business structure. For instance, important additional requirements include: keeping a business plan, maintain the local bank account and register with the VAT department in Bulgaria.

Moreover, it is important to note and periodically verify the taxation rules updated in Bulgaria. In the case of Bulgarian sole proprietorships, the income tax for sole traders is 15% (Personal Income Tax Act) and the VAT rate stands at 20% for this kind of structure. Our specialized accountants in Bulgaria can offer assistance in the matter of taxation and registration of Bulgarian sole traders.

We can also help you incorporate a company in Dubai, through our partners from BridgeWest Dubai. The time frame for incorporation in Dubai is 1-3 weeks.

Data on companies in Bulgaria

As Bulgaria represents an attractive business destination, especially for foreigners, official data presents a breakdown of companies across the country:

• In May 2025, there were 886,293 companies registered;
• The total number of Bulgarian companies represents 1,92% from the total of companies across Europe;
• One of the most popular business fields in Bulgaria is represented by the services industry, with 200,478 companies.

Furthermore, business expansion in this country is also offering young entrepreneurs a beneficial environment for startups in Bulgaria. In this matter, our specialized company formation agents can offer professional support to successfully open a Bulgarian startup.

For more information and specialized support in setting up a sole trader in Bulgaria, do not hesitate to contact us.