Starting a Business in Bansko – Legal Forms and Administration

If Bansko is the place where you have decided to turn your entrepreneurial idea into reality, you have come to the right place. The city has long been more than just a winter resort - it is a global hub for digital nomads, investors and innovators. But before you open your laptop in one of the popular coworking spaces or cut the ribbon on your new physical facility, your first task is to „shape“ your presence before the state. The successful starting a business in Bansko requires the correct choice of legal form.

Here's what the main options look like, their advantages and administrative requirements relevant to the local ecosystem.

1. Company registration (LLC or OOD)

This is the most universal and preferred model in Bulgaria. You should definitely choose it if you are going to work with a large team, attract partners, or plan to open a physical location in the city, such as a restaurant, boutique hotel, ski locker, or store.

Main advantages (Pros)

Protection of personal property: The company is a separate legal entity. You are liable to potential creditors only up to the amount of the company's capital.
Tax optimization: Corporate tax (profit tax) in Bulgaria is fixed at 10%. In addition, you can report a number of company expenses (purchase of equipment, office rentals, specialized software and business trips), which further reduces your taxable base.
Trust and prestige: Limited Liability Companies (Ltd.) look much more prestigious and reliable to international clients and B2B partners.

Potential Disadvantages (Cons)

Administrative burden: You need professional accounting services from day one of your business. This is a monthly fixed expense that you should budget for.
Access to funds: Withdrawing company money for personal use is not instantaneous. It requires the payment of a dividend (which is subject to additional 5% tax after the end of the financial year) or is done through the payment of a salary on which the relevant social security contributions are due.

📑 Required documents for starting an EOOD/OOD:

Articles of Association (for LLC) or Articles of Association (for LLC).
Decision to appoint a manager/s.
A specimen (sample of the manager's signature), which must be notarized.
Certificate from a selected bank for paid-in share capital (the minimum required by law is 2 BGN or 1 EUR).
Application A4 to the Commercial Register and Registry Agency.

2. Self-employed person (Freelance)

This model is the "gold standard" for the thousands of digital nomads, programmers, graphic designers, copywriters and business consultants who work completely independently and choose Bansko as their home and mobile office.

How is the activity started?

Registration in the BULSTAT register with the Registry Agency is required within a strict 7-day period from the start of the activity (the date of your first contract or invoice). The process is optimized and is done quickly and entirely online if you have a qualified electronic signature (QES). An important requirement is to present an official document proving your professional qualification (higher education diploma or valid certificate for an acquired profession).

Insurance and Taxes

As a self-insured person, you pay your own insurance premiums by the 25th of each month. You choose the amount you insure yourself, but it must be within the legal limits - between the minimum insurance threshold and the maximum threshold for the relevant year.

However, here it is hidden the biggest advantage on this model. The state provides you with 25% of legally recognized expenses (in some specific professions they are even more). This practically means that you do not have to collect invoices for small expenses, coffees and consumables - the state automatically assumes that a quarter of your income is an expense for carrying out the activity, and taxes you with a 10% flat tax only on the remaining 75%.

3. Where to find legal assistance and lawyer services in Bansko?

To avoid getting lost in the translation between the Bulgarian state administration and your ambitious business plans, it is highly recommended to trust local experts. They are part of the city's ecosystem and solve cases related to foreign investments and remote teams on a daily basis.

Vip Consult Bansko: Undisputed leaders in comprehensive services for foreign entrepreneurs in the Pirin region. They are an excellent choice for quick registration of new companies, as well as for legal assistance in the purchase and sale of business properties in the resort.
Trifonov Law Offices: A firm that is strongly oriented towards the modern IT sector, e-commerce and remote employment contracts. They perfectly understand the needs of online-based businesses.
Attorney Valentina Katsarska / Bansko Lawyer: Established local specialists with extensive experience in working with local authorities. Their services are invaluable in obtaining permits for physical facilities, as well as for complex immigration matters (e.g. procedures for obtaining a D Visa for foreign employees or partners).

⚠️ Important advice for digital business (VIES and VAT):

If you plan to provide services to business-to-business (B2B) clients based in the European Union (for example, if you work through freelance platforms such as Upwork, Fiverr, or have direct clients in Germany, Spain, etc.), be sure to ask your lawyer and accountant for registration under Art. 97a of the VAT Act. This registration is critically important and must be done. before to issue your first international invoice!

Starting a business in Bansko is an exciting start to a new chapter. Whether you choose the corporate security of an LLC or the freedom of freelance practice, the right legal structuring will save you time, money, and unnecessary headaches in the future.