For a Chinese manufacturer, trader or e-commerce seller, a company inside the EU changes the conversation with European customers: an EU address, an EU VAT number, an EU importer of record and a party that can take responsibility for products sold here. Bulgaria offers that base with a 10% corporate tax, Black Sea ports at Varna and Burgas and road connections to the rest of the EU. This guide covers the company, the checks on both sides, the goods, the people and the investors.
Choosing the vehicle
| Vehicle | When it fits | What to know |
|---|---|---|
| Subsidiary (EOOD) | Trading, importing, warehousing, employing staff | A separate Bulgarian company; the parent's liability is limited to its investment |
| Branch | The parent wants to trade in its own name | Not a separate legal person; the parent answers for its debts |
| Representative office | Market research, promotion, liaison | Registered with the Bulgarian Chamber of Commerce and Industry; may not trade — see representative office |
| Buying an existing company | Speed, or an existing licence or contract | Requires full due diligence on its history |
For most Chinese businesses the subsidiary is the right choice. The comparison is set out in branch or subsidiary, and the registration steps in setting up a limited company.
Before money leaves China
Chinese outbound investment rules apply before the Bulgarian ones. As a rule, the investment is filed with or approved by the National Development and Reform Commission and the Ministry of Commerce, and registered for foreign exchange before the funds can be transferred. A State Council regulation on outbound investment in force since 1 July 2026 also covers investment by individuals. Your Chinese advisers handle these filings; the Bulgarian bank will often ask to see them as part of its source-of-funds checks, so plan the two sides together.
Documents from China
Since 7 November 2023 documents issued in China take an apostille instead of consular legalisation, which saves weeks. A subsidiary usually needs:
- The parent's business licence and articles of association.
- The resolution of the parent's competent body approving the subsidiary and appointing its manager.
- A chart of the ownership chain up to the individuals who ultimately own the group.
- Powers of attorney for the people acting in Bulgaria.
- Passports of the manager and of anyone else acting for the company.
Everything is apostilled in China and translated into Bulgarian. Chinese companies often have no registered English name, so choose one Latin-script version of the parent's name and use it on every document. For individuals, use the pinyin spelling exactly as it appears in the passport.
Foreign investment screening
Since 2024 Bulgaria screens certain investments from outside the EU. It applies to sensitive sectors — such as critical infrastructure, critical technologies and the media — where the investor acquires 10% or more of a company or invests above a set amount, including in a new project. An investment caught by the rules may not be completed until it is cleared. Investors in which a non-EU state participates are caught regardless of those thresholds.
An ordinary trading, distribution or warehousing company usually falls outside the regime. Logistics near ports, energy, telecommunications and technology can fall inside it, so we check at the start rather than at closing.
The bank account
Bulgarian banks apply enhanced checks to companies owned from outside the EU. Expect to show the ownership chain to the individuals at the top, the Chinese outbound investment filings, a business plan naming the main suppliers and customers, and, for goods that may have military uses, how export-control and sanctions rules have been checked. See opening a Bulgarian business bank account.
Warehouse, customs and selling in the EU
- EORI number. Needed from the Bulgarian Customs Agency before the first import.
- VAT registration. Required for imports and sales in Bulgaria; distance sales to consumers elsewhere in the EU are declared through the EU's one-stop-shop schemes (OSS and IOSS).
- Customs warehouse. Holding non-EU goods with import duties suspended until they are sold requires an authorisation from customs.
- Product compliance. CE marking where it applies. Since December 2024 the EU General Product Safety Regulation requires an economic operator established in the EU for most consumer products — a Bulgarian subsidiary can take that role.
- Packaging. Packaging placed on the Bulgarian market brings producer-responsibility obligations.
- Premises. A Bulgarian company can lease or buy a warehouse and urban land; with owners from outside the EU it cannot acquire agricultural land — see what foreign buyers can own. Check the plot's zoning and permits before signing: see title due diligence.
- Transfer pricing. Prices between the parent and the subsidiary must be at market level and documented.
Staff from China
- Managers and specialists from the group can come on an intra-corporate transfer permit, after at least 12 months' prior employment in the group (six for trainees), for up to three years (one year for trainees).
- Highly qualified hires can use the EU Blue Card, which has no job-advertising requirement and no cap on foreign staff.
- Other employees come on the single permit, subject to the labour market test and the cap on non-EU staff.
- An owner who manages the company can obtain residence as its manager once the company creates at least 10 full-time jobs for Bulgarian citizens for each foreign partner or manager.
Investors and families
Individual investors from China can obtain permanent residence through investment — fund units, listed securities or a priority investment project above the statutory amounts — without having lived in Bulgaria first. A purchase of real estate above the statutory value gives long-term residence. In both cases you apply for a Type D visa at the Bulgarian embassy in Beijing or at the consular post responsible for your region, with apostilled documents, and families follow through family reunification.
Tax
The subsidiary pays 10% corporate tax on its profit. Dividends paid to the Chinese parent are subject to 5% withholding tax in Bulgaria, and the Bulgaria–China double tax treaty governs taxing rights between the two countries. Interest, royalties and service fees paid to the group need the same care as prices for goods, because the tax authorities test them against market terms. See tax structuring.
A typical timeline
Plan
Choose the vehicle, check whether screening applies, and start the outbound investment filings in China.
Documents
Board resolution, licence, articles and powers of attorney are signed, apostilled and couriered to Sofia.
Registration
The company is registered within days of a complete filing.
Bank
The account is opened once the bank's checks are complete — usually one to two weeks.
Customs and VAT
EORI and VAT registration, and a customs warehouse authorisation where needed.
People
Permits for staff from China — allow three to six months for a single permit.
Questions clients ask
Can a Chinese company own 100% of a Bulgarian company?
Yes. There is no restriction on foreign ownership of an ordinary Bulgarian company. The individuals who ultimately own the group are declared as beneficial owners.
Do our directors need to travel to Bulgaria?
Not for the registration. Some banks want to meet the manager once; we check this before you start.
Does setting up a company give our managers residence?
Not automatically. A manager sent from the group can use the intra-corporate transfer permit; an owner-manager needs the company to meet the conditions of the manager ground.
Can the subsidiary buy land for a warehouse?
It can buy urban land as a Bulgarian company, subject to zoning. It cannot acquire agricultural land while it has owners from outside the EU.
This guide is general information about Bulgarian law as it stood on the date of publication. It is not legal advice for your specific case. Unfamiliar terms are explained in our glossary.
