The company branch registration in Bulgaria is in many ways similar to trade representative office (TRO) of a foreign company in Bulgaria. What makes the company branch different is that it must be established by an already registered Bulgarian company. For example, if one has already registered a limited liability company in Bulgaria, the latter may open a branch or multiple branches outside the place of its headquarters.

Similarly to the TRO, the company branch is not a separate legal entity from its parent. Thus, the Bulgarian company that sets up the branch is accountable with all of its assets for all the branch liabilities.

Who can set up a company branch in Bulgaria?

Any Bulgarian commercial legal entity or a sole trader can establish unlimited number of branches within the country. There is no minimum capital requirement for registering the branch.

Management and scope of activities

The parent legal entity must appoint a either foreign or local natural person who will manage the branch.

It is allowed to perform any commercial activity. Its activities may match the one of its parent or extend beyond that. For example, the parent company may perform all of the manufacture while the branch is focused on retail services at another location.

What is the tax liability for the branch?

The branch must keep separate accounting books, and it triggers corporate income tax liability for its parent.

What are the required registration documents?

The parent legal entity or sole trader must adopt a resolution for setting up the branch. A notarized specimen of the branch manager is also required. All documents, including a receipt for paid state fee in the amount of BGN 20 (approx. EUR 11), shall be filed with the Commercial Register. The registration takes up to 2 work days.