Open a Financial Company in Bulgaria

Investors who want to open a financial company in Bulgaria need to observe the country’s rules for banking and financial entities. One of our lawyers in Bulgaria can help you set up a financial services company by observing all of the applicable regulations. 

How to open a financial company in Bulgaria

Investors who want to start a financial company in Bulgaria need to follow a few steps concerning registration, and permits. First-time investors in Bulgaria can request specialized assistance during the completion of these steps.

Commonly used business forms in Bulgaria include: the limited liability company, the joint stock company, the foreign branch, and the representative office.

Financial licenses in Bulgaria

Considering there are various types of services a Bulgarian financial company can offer, the licenses issued by the local authorities are related to these undertakings. Even if they are grouped under one financial business permit, the issuance requirements are covered by different laws.

Generally speaking, a Bulgarian financial license will cover the following:

• the provision of payment services, in accordance with the Payment Services and Payment Systems Law;
• the issuance and administration of various types of credits;
• financial leasing operations;
• trading of local and foreign currency, precious metals, and other financial instruments;
• issuance of electronic money;
• currency exchange services;
• purchase of credit claims;
• factoring activities;
• lending operations;
• asset management;
• private banking;
• wealth management;
• insurance and reinsurance;
• capital management, risk, and liquidity management.

The non-banking financial sector in Bulgaria is overseen by the Financial Supervision Commission. The stability of the banking system and the activities of other banks are overseen by the Bulgarian National Bank (significant banks have been supervised directly by the ECB since Bulgaria joined the Banking Union in October 2020).

Our lawyers in Bulgaria can offer detailed information on all the activities that can be completed under a financial license in Bulgaria.

Conditions to obtain a financial license in Bulgaria

In order to be issued a financial license, a company must ensure the following before applying for it:

• it must be registered under one of the available business forms in Bulgaria (for financial activities, it can be organized as a private or public company or a limited partnership with shares);
• the business must supply a description of its activities which must be related to the financial sector;
• the enterprise must issue registered shares only, and its capital must be deposited in accordance with Ordinance No. 26/2009;
• the main operation of the business must be completed in Bulgaria;
• the managers, directors, and other key officers must meet certain adequacy requirements.

The adequacy conditions of the staff refer to having:

• qualifications and experience in the financial field;
• good reputation;
• a clean criminal record.

Apart from these requirements, there are also various documents to provide to the Bulgarian National Bank or Financial Supervision Commission.

If you need assistance in filing for a financial license, you can rely on our Bulgarian law firm.

Capital requirements for financial companies in Bulgaria

As mentioned above, obtaining a financial license in Bulgaria is linked to securing capital in accordance with Ordinance No. 26/2009 which stipulates:

• at least EUR 511,292 (the euro equivalent of the former BGN 1 million) is the minimum share capital for a financial institution;
• such companies must also ensure a minimum equity of the same amount (EUR 511,292) at all times;
• EUR 75,000 to EUR 750,000 is the initial capital required for investment firms (investment intermediaries), depending on the services they offer.

The financial services sector in Bulgaria 

The financial services sector in Bulgaria is well-developed and represented by both national and foreign companies. More than half of the banking sector in Bulgaria is dominated by foreign banking groups.  Bulgarian financial services companies provide a variety of services and solutions. Most of the large and medium-sized companies in this field are concentrated in large cities like Sofia, Plovdiv, or Varna. Several of the largest EU banking groups operate in Bulgaria through local subsidiaries.

Our law firm in Bulgaria is at the service of companies and natural persons as well. Besides company incorporation, we offer various other services. If you are a foreign citizen who wants to immigrate to Bulgaria, we can assist with the procedures of obtaining a Bulgarian residence permit. If you plan to move here indefinitely, we can also help with the application for Bulgarian citizenship through naturalization.

Contact our lawyers in Bulgaria for legal services and assistance for investments.