ABOUT BULGARIA

Amongst all the countries in Europe, Bulgaria, officially the Republic of Bulgaria, is a nation located in the southeastern part of the Balkan Peninsula. It is characterized by its diverse landscapes, including the Black Sea coastline, mountainous regions, and fertile plains. Bulgaria is the 16th largest country in Europe by area. The capital of Bulgaria is Sofia, which is its largest and most populous city, serving as the country’s primary economic, cultural, and administrative hub. According to the report of the World Bank, Bulgaria is classified as an Upper Middle-Income Economy, and as a full member of the European Union, it is well-integrated into the bloc’s economy. The currency of Bulgaria is the Bulgarian Lev (BGN), which is pegged to the Euro at a fixed rate (1 EUR = 1.95583 BGN). The value of 1 Indian Rupee is approximately 0.0216 Bulgarian Leva (or 1 BGN is approximately 46.22 INR) as of today’s exchange rates (June 2025). The population of Bulgaria is estimated to be around 6.5 million in 2024. Its neighbouring countries are Romania to the north, Serbia and North Macedonia to the west, Greece and Turkey to the south. The official language of the country is Bulgarian. The majority of the Bulgarian population practices Eastern Orthodox Christianity, with a significant Muslim minority and other smaller religious communities. Currently, Bulgaria has several international airports, including Sofia Airport (SOF), Varna Airport, and Burgas Airport, offering convenient air connectivity to various parts of Europe and beyond. As Bulgaria borders the Black Sea, it has key commercial seaports in Varna and Burgas, which are crucial for facilitating international trade, especially with other Black Sea countries and for onward transport to Central and Western Europe.

The corporate income tax rate in Bulgaria is famously low at a flat 10%, making it one of the most attractive tax regimes in the European Union. This low rate applies to corporate profits. Various incentives, including state aid for specific investment projects and EU funding opportunities, are also available. Opesh Group of companies will be helping you in completing the Due Diligence process which includes financial planning, registration process, business options, and if required, even helping you find a rental property for your office.

Establishing a business in Bulgaria is relatively straightforward, benefitting from its EU membership and harmonized legal framework. The Bulgarian Investment Agency (BIA) is the primary government body promoting and assisting foreign investors. A foreign investor who is planning to start his business in Bulgaria can form various company types, such as a Limited Liability Company (OOD or EOOD for sole ownership), a Joint Stock Company (AD), or a Branch Office. A Limited Liability Company (OOD or EOOD) is the most common and flexible form, allowing 100% foreign ownership and requiring a minimal share capital (BGN 2).

In case an investor is planning to establish an LLC (OOD/EOOD) in Bulgaria or a corporate business setup, Opesh Group will be helping you in taking the right decision for setting up your business in Bulgaria and we will also guide you about how to follow the procedure while formulating your company in Bulgaria.

Types of Business which can be started in Bulgaria:

• IT & BPO (Information Technology & Business Process Outsourcing): Bulgaria has emerged as a significant hub for IT and BPO services in Europe, owing to its skilled, multilingual workforce, competitive costs, and strong tech talent pool. Opportunities are vast in software development, cybersecurity, cloud services, IT support, call centers, and shared service centers.
• Manufacturing (Automotive, Machinery): A well-established sector, particularly in automotive components (parts for major European carmakers), machinery, and electronics. Opportunities exist in precision manufacturing, assembly, and leveraging Bulgaria’s competitive costs for export-oriented production within the EU.
• Tourism: Bulgaria offers a diverse tourism product including Black Sea beach resorts, ski resorts (Bansko, Borovets), cultural and historical sites, and eco-tourism. Opportunities are vast in hotel development, specialized tour operations, wellness tourism, and sustainable tourism initiatives.
• Agriculture & Food Processing: With fertile land and diverse climate, Bulgaria produces grains, vegetables, fruits, and wine. Opportunities exist in modernizing farming, organic production, and value-added food processing (dairy, meat products, canned goods, wine, essential oils like rose oil).
• Energy (Renewables): Bulgaria is enhancing its energy mix with a focus on renewables. Opportunities exist in developing solar farms, wind power projects, biomass, and energy efficiency solutions, supported by EU policies and funding.
• Infrastructure & Construction: Driven by EU cohesion funds and national development plans, there’s ongoing investment in transport networks (roads, railways), energy infrastructure, and urban development projects. This creates opportunities for construction, engineering, and material supply firms.
• Logistics & Transportation: Bulgaria’s strategic location provides access to key European, Balkan, and Black Sea markets. Opportunities lie in developing logistics centers, warehousing, and intermodal transport solutions, leveraging its ports and land corridors.
• Healthcare & Pharmaceuticals: With an aging population and increasing demand for modern healthcare, opportunities exist in specialized medical services, private clinics, and the import/distribution or manufacturing of pharmaceutical products.

Advantages of Starting Business in Bulgaria:

• EU Membership: Provides access to the entire EU single market, free movement of goods, services, capital, and people, and eligibility for EU structural and cohesion funds.
• Strategic Location: Positioned at the crossroads of Europe, Asia, and the Middle East, offering excellent connectivity and market access to various regions.
• Low Operating Costs: One of the most cost-competitive countries in the EU for labor, office rents, and utilities, making it attractive for various businesses.
• Favorable Tax Regime: Offers one of the lowest corporate income tax rates in the EU (10%), enhancing profitability for businesses.
• Skilled & Multilingual Workforce: A relatively well-educated workforce, with a good command of foreign languages, particularly English, German, and Russian.
• Political Stability: Has a stable democratic political system and is committed to further integration with European structures.

Business Opportunities for Indians in Bulgaria:

There are excellent business opportunities in Bulgaria for new investors who are planning to start their business abroad. As an EU member with a low tax rate and strategic location, Bulgaria presents an attractive proposition. Indian investors, with their strengths in IT & BPO, pharmaceuticals, automotive components, manufacturing, agriculture, and renewable energy, can find significant opportunities. Bulgaria can serve as a cost-effective manufacturing and service hub for accessing the broader European market.

Imports & Exports:

Many goods are imported and exported from Bulgaria. Imports and exports business is an ever-growing business in any country; however, you need to do proper R&D before investing in that product which you can import or export. You need to check whether that product is suitable for your target market and how much revenue you will be able to generate from that market.

Major items which are exported from Bulgaria to India:

• Sunflower seeds (major item)
• Medicinal and aromatic plants
• Plastics and plastic articles
• Iron and steel products
• Optical, photographic, medical instruments
• Machinery and mechanical appliances

Major items which are imported in Bulgaria from India:

• Pharmaceutical products
• Machinery and mechanical appliances
• Electrical and electronic equipment
• Organic chemicals
• Textiles and apparel
• Vehicles and parts
• Cereals (especially rice)

Manufacturing:

Opportunities in manufacturing are strong, particularly in the automotive components sector, machinery, and electronics, often as part of global supply chains. There’s also potential in food processing, textiles (especially value-added products), and light manufacturing, leveraging Bulgaria’s cost advantage within the EU.

Mining:

The mining sector in Bulgaria includes coal, copper, gold, and lead-zinc. Opportunities exist in modernizing existing mining operations, improving extraction and processing efficiency, and exploring new deposits, with a focus on environmental sustainability.

Major Indian companies which are currently working in Bulgaria:

While specific large Indian corporate manufacturing setups might be fewer compared to West Europe, Indian businesses have a growing presence or strong trade ties:

• Pharmaceuticals: Several Indian pharmaceutical companies (e.g., Ranbaxy, Dr. Reddy’s) have a strong market presence through distribution and sales.

• IT & BPO: Some Indian IT service providers or BPO companies have established operations or partnerships.

• Trade: Indian traders are active in importing various goods from India and exporting Bulgarian products.

• Automotive Components: Indian auto component manufacturers may have supply chain relationships.

• GDP = $105.7 billion (2024 est.)

• GDP Growth = 2.2% (2024 est.)

• Ease of doing business rank = 61 (2020 – Note: The World Bank discontinued this report, but this is the last available ranking.)

• GDP per Capita = $16,211 (2024 est.)

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