Romania or Bulgaria for your business?
Compare Romania and Bulgaria as company formation destinations and find clear answers to the questions entrepreneurs ask most often.
🇷🇴 Romania
Company formation, taxation, dividends, and ongoing business support in Romania.
We take a practical, business-focused approach built on clarity, reliability, and personal support. We do more than simply register your company — we help you choose the right structure for your business model, profit distribution strategy, and long-term plans. From the outset, you know what the process looks like, which documents are required, and which legal and tax matters need to be handled properly.
We provide a clear all-inclusive quote based on the scope of services you need. The overall cost depends on factors such as the type of company, number of shareholders, VAT registration requirements, registered address, document translations, and post-incorporation support. This gives you a realistic view of the full cost from the beginning, not just a headline starting price.
Not necessarily. Company formation and personal tax residency are two separate matters. In many cases, it is possible to establish a company in Romania without changing your personal tax residency. The right structure should always be chosen carefully to avoid unnecessary tax exposure and practical complications.
Romanian corporate taxation should always be assessed as part of the setup process. Some smaller businesses may still qualify for the micro-company regime, but the eligibility criteria are more restrictive than they used to be. For that reason, every structure should be reviewed carefully before registration.
Dividend planning should be considered from the very beginning. What matters is not only the tax rate itself, but also the shareholder’s status, tax residency, applicable double tax treaties, and the timing of profit distributions. We always tailor the distribution model to the client’s specific circumstances and business goals.
Yes. It is entirely possible to establish a company structure designed for a single owner. We help choose the appropriate legal form and documentation so that the company is practical to manage, fully compliant, and suitable for long-term operation.
Profit distributions must comply with the relevant corporate and accounting rules. In practice, they can often be planned with a fair degree of flexibility, but proper documentation and correct accounting treatment are always essential.
Yes, although this is not always the most efficient option from a cost perspective. The right approach depends on whether your priority is a regular salary, social security contributions, building an income history, or taking profits in a different way. The structure should reflect your actual business needs.
Yes. A Romanian company needs a registered address and, in practice, also an appropriate operational setup, including banking or payment solutions. We help identify the most suitable option based on the type of business, ownership structure, and expected turnover.
We work with clients in Polish, English, and Romanian. Depending on the project, we can also assist with communication involving documents, government authorities, accounting, and day-to-day company support.
🇧🇬 Bulgaria
Low 10% corporate tax, attractive options for many self-employed professionals, symbolic share capital, and euro adoption from 2026.
Bulgaria is one of the most attractive jurisdictions in the EU for entrepreneurs looking for a simple and relatively low-tax setup. The standard corporate income tax rate is 10%, and the basic personal income tax rate for individuals and many self-employed structures is also 10%. This makes Bulgaria particularly appealing for service providers, consultants, IT businesses, e-commerce entrepreneurs, and international founders.
The most common company forms in Bulgaria are EOOD and OOD, which are broadly comparable to limited liability companies. The standard corporate income tax rate is 10% on profits. If profits are distributed as dividends, an additional 5% dividend tax generally applies. In practice, this creates a straightforward and predictable model: 10% at the company level, followed by separate taxation when profits are distributed.
Yes. Foreign individuals and legal entities can establish companies in Bulgaria. The most common structure is an EOOD, which is a single-owner limited liability company, or an OOD for multiple shareholders. It is a practical solution for entrepreneurs who want to operate within the EU without the need for a local partner.
The minimum share capital for an EOOD or OOD is symbolic — just 2 BGN, or roughly 1 EUR. This is one of the reasons Bulgaria is relatively easy to enter. In practice, however, some entrepreneurs choose to start with a higher amount of capital in order to present the company as stronger and more credible to banks, counterparties, and payment providers.
Sometimes, but it depends on the structure. Many self-employed professionals and liberal professions in Bulgaria are taxed at a 10% personal income tax rate on the taxable base rather than on gross revenue. However, the classic sole trader structure (ET) is treated differently and is generally taxed at 15%. For that reason, it is important to compare self-employment with an EOOD before deciding which option is more suitable.
That depends on your revenue, costs, profit distribution plans, and whether limited liability is important to you. Self-employment can be simpler and more efficient at a smaller scale, while an EOOD offers limited liability and greater flexibility when retaining profits within the company. A company structure is also often viewed more favorably by banks, payment providers, and business partners.
The standard VAT rate in Bulgaria is 20%. For many small businesses and service-based activities, it may be possible to begin without VAT registration, but once the legal threshold is exceeded, registration deadlines must be monitored carefully. If you provide cross-border services or operate within the EU market, VAT should be reviewed at the planning stage.
Yes. For entrepreneurs, this means easier international payments, simpler cost comparisons within the EU, and less exposure to exchange-rate risk when working with foreign clients.
Not necessarily. Owning a Bulgarian company and being personally tax resident in Bulgaria are two separate matters. It is possible to own a Bulgarian company without changing your personal tax residency, but in that case you need to pay careful attention to management, the place of effective business activity, business substance, and possible taxation in another country.
Very often, yes. Bulgaria is popular with service businesses, consulting firms, software houses, freelancers, marketing companies, e-commerce ventures, and other online businesses. The main reasons include the 10% corporate tax rate, relatively simple tax rules, low entry barriers, symbolic share capital, and full access to the EU market.
We provide support in Polish and English, including assistance with documents, company registration, tax matters, registered address solutions, and ongoing business support. This means our clients do not need to manage the entire process on their own.
Learn more in the Free Advice section.