Our business is forming Bulgarian companies that last over time — not selling as many as possible. As a result, we turn down certain profiles. A poorly thought-out company will always cost you more than not forming it at all.
Here, without beating about the bush, is who should NOT form a Bulgarian company — and, further down, for whom it is, on the contrary, an excellent idea. If you recognise yourself in the first list, we will tell you frankly, on the very first call.
Saying "no" is not a sales pitch — it is the best sign of seriousness a firm can give. Competitors who promise everyone miracles lose their credibility in the face of this transparency.
The profiles we turn down7 cases where a Bulgarian company is a bad idea
✕ You are looking for a simple invoicing shell, with no real activity to house in it.
If your activity (management, operations, means, clients) in reality stays in France or elsewhere, the Bulgarian company is just a façade. The authorities can re-characterise it as a permanent establishment and tax it where you are, with penalties and a reassessment spanning several years. A Bulgarian company protects an activity genuinely run remotely or mobile — not a sedentary physical business looking for a tax shield.
✕ You refuse any substance and any minimal commitment.
A defensible structure presupposes genuine economic substance: an address, a local agent, bookkeeping on the ground, and a minimum of involvement on your part. Without that, the company is open to challenge. Even the electronic-signature key (QES) and opening an account require commitment on your side. If you want to do nothing and be involved in nothing, the tool is not suited to you.
✕ You are hoping for "0% total tax" or anonymity.
We sell neither. Bulgaria means 10% corporate tax then 0 to 5% on dividends — but "0% in Bulgaria" ≠ "0% in total": depending on your tax residence, dividends and capital gains remain taxable there under treaty. And the beneficial owner (≥ 25%) is PUBLIC in the register (чл. 63 ЗМИП). Anyone promising you "0% total" or anonymity is misleading you.
✕ You are counting on a "guaranteed" bank-account opening.
Fenchell forms the company; you are the one who opens your accounts, and acceptance is up to each institution — it is neither included nor guaranteed. We help assemble the file, nothing more. If your project collapses without an account opened in advance, that needs to be discussed before forming the company, not after.
✕ You want to escape your reporting obligations in your country.
The automatic exchange of information (CRS), declaring your foreign accounts and income: transparency is the rule. A Bulgarian company does not remove your obligations in your country of residence — and we will not help you do that. Our role is to structure you legally, not to hide you.
✕ Your activity is regulated without a licence, sanctioned or unlawful.
Regulated professions without the required licence, sectors under international sanctions (OFAC, EU), unlawful activities: that is outside our scope, no exceptions. We apply our own compliance checks (KYC/AML) and turn down files we cannot defend.
✕ Your volume is too low for the operation to be worthwhile.
Below a certain level of profit, the cumulative cost (formation, substance, bookkeeping) exceeds the tax saving. We will tell you frankly: sometimes the best recommendation is to wait until your activity grows. A client who comes back at the right moment is worth more than a disappointed one.
Who, on the contrary, it is an excellent idea for
If your work fits inside a computer, a bank account and clients spread across the EU, a well-structured Bulgarian company is probably the most direct route:
EU e-commerce sellers
Amazon, Shopify and marketplace sellers: a digital activity, manageable remotely, with genuine substance in Plovdiv — credible to platforms and payment processors.
Freelancers & consultants
Clients spread across the EU, digital services: credible European invoicing, taxation among the lowest in the EU, with no capital to tie up.
Nomads & creators
For those who work from several countries: a stable legal base in the EU, formed remotely — provided you accept the minimum substance that makes the structure defensible.
If you recognise yourself in the list at the top, we will tell you — free of charge, on the very first call. An honest "no" is better than a "yes" that costs you dearly in a tax reassessment, a frozen account or a useless company.
This page reflects our policy and the law in force in 2026. It does not constitute personalised advice; your eligibility depends on your situation, to be confirmed case by case.