Branch of a Foreign Company
Step by step
How to register a foreign company branch in Bulgaria
Prepare the parent company and manager documents, arrange any required translations and authentication, and register the branch in the Commercial Register.
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Collect parent documents
Prepare the parent company’s articles of association, a current commercial register extract showing its managers and representation, and its decision to open the branch and appoint the manager.
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Prepare manager documents
Prepare a notarised power of attorney for the manager and the manager’s notarised consent and specimen signature.
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Translate and authenticate
Arrange Bulgarian translations, with an apostille or legalisation where needed.
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Register the branch
Register the branch in the Commercial Register.
What a branch is
- Any foreign company entitled to trade in its own country can register a branch.
- The branch has a registered office and a manager, but no capital of its own.
- Its contracts are the parent’s contracts, and the parent is liable for its obligations.
- For tax it is a permanent establishment, taxed at 10%; profits sent to the parent carry no further tax.
Source: LPG Bulgarie: Setting up in Bulgaria, as a branch or as a subsidiary?; Multilaw: Bulgaria, branch of a foreign entity; Deloitte: International Tax, Bulgaria Highlights 20262,1,3
Documents
- The parent’s articles of association.
- A current extract from the parent’s commercial register showing its managers and how it is represented.
- The parent’s decision to open the branch and appoint the manager.
- A notarised power of attorney for the manager.
- The manager’s notarised consent and specimen signature.
- Bulgarian translations, with an apostille or legalisation where needed.
Source: Multilaw: Bulgaria, branch of a foreign entity; Commerce Act (Ministry of Finance, PDF), articles 17 and 17a1,4
Running a branch
- The branch needs at least one manager, who must be an individual. There is no residence requirement, but a manager living abroad means appointing a local contact person under the anti-money-laundering rules.
- It keeps its own accounts as if it were a separate business and files annual financial statements, approved by the parent, with the Commercial Register.
- The parent’s own annual accounts and changes to its articles must also be filed.
- It registers for VAT and payroll in the same way as a company.
Source: Multilaw: Bulgaria, branch of a foreign entity; Commerce Act (Ministry of Finance, PDF), articles 17 and 17a1,4
Branch or subsidiary?
| Branch | Subsidiary (EOOD) | |
|---|---|---|
| Separate legal person | No | Yes |
| Capital | None | From €1 |
| Liability | The parent | Limited to the capital |
| Corporate tax | 10% | 10% |
| Profit to the parent | No tax on transfers | 0% to EU and EEA parents, otherwise 5% or the treaty rate |
Source: Multilaw: Bulgaria, branch of a foreign entity; LPG Bulgarie: Setting up in Bulgaria, as a branch or as a subsidiary?; Deloitte: International Tax, Bulgaria Highlights 20261,2,3
Frequently Asked Questions
What is a branch of a foreign company in Bulgaria?
A branch of a foreign company in Bulgaria is a registered place through which the company can trade, sign contracts and employ staff. It has no capital and is not a separate legal person, so the parent company is liable for its obligations.
How long does it take to register a foreign company branch in Bulgaria?
Registration of a foreign company branch in Bulgaria takes one day after the application is filed.
How much does it cost to register a foreign company branch in Bulgaria?
Usual state and notary costs to register a foreign company branch in Bulgaria are approximately €150, before translation costs.
What tax does a foreign company branch pay in Bulgaria?
A foreign company branch in Bulgaria is taxed as a permanent establishment at 10% on its profits. Profits transferred to the parent company carry no further tax.
Sources
- Multilaw: Bulgaria, branch of a foreign entity
- LPG Bulgarie: Setting up in Bulgaria, as a branch or as a subsidiary?
- Deloitte: International Tax, Bulgaria Highlights 2026 (PDF)
- Commerce Act (Ministry of Finance, PDF), articles 17 and 17a
Figures checked 13 October 2026. Prepared by InvestBulgaria for general information. It is not investment, tax or legal advice; please confirm details with a qualified adviser before acting.
