Setting up a sole trader (ET) in Bulgaria
An ЕТ (едноличен търговец) is a business run in the name of one individual and entered in the Commercial Register. It is simple to set up, but the owner is liable for its debts without limit, so compare it with company forms before deciding.
Companies and taxes · Last reviewed: 2026-10-08
This is not legal or financial advice
Who can register as an ET
According to the Ministry of Economy's SME handbook, under article 56 of the Commerce Act any legally capable individual with residence in the country can register as a sole proprietor. Article 57 bars certain bankruptcy-related situations (for example being in bankruptcy proceedings or bankrupt without restored rights); the applicant declares in writing that none applies. The handbook does not explain which residence status of a foreign national meets the condition, so ask a lawyer and the migration authority.
Name, capital and liability
- Name: the individual's first and family (or middle) name, written in full without abbreviation.
- Capital: there is no minimum capital and no partner is needed.
- Liability: the owner answers for debts with all property, personal property included; only items that cannot be seized under article 444 of the Civil Procedure Code are excluded.
- Marriage: business assets a married sole trader buys are personal property under article 22(3) of the Family Code, not joint marital property.
How to apply
The application («A1» form) goes to the Commercial Register run by the Registry Agency, in person or online; online filing needs a qualified electronic signature. Per the handbook, the attachments are a declaration that none of the article 57 circumstances applies, a specimen of your signature and a declaration that you are not banned from commercial activity. The fee is not stated here; confirm the current figure with the Registry Agency.
Tax and annual obligations
On the National Revenue Agency page, an ET is taxed on the tax profit determined under the Corporate Income Tax Act, reported in the personal annual return (article 50, form 2001, Appendix 2). The return and payment are due from 1 March to 30 June of the year after the income. If the ET had no business income in the year, no return is filed on that basis. The ET owner bears social and health insurance and taxes personally; the handbook describes them as paid at year end. On filing annual accounts, the Registry Agency page exempts sole traders from the general-meeting minutes requirement that applies to large enterprises.
This page is not legal or tax advice
Frequently asked questions
Does an ET need partners or capital?
No. The Ministry of Economy handbook states there is neither a minimum capital nor a partner requirement, but the owner's liability is unlimited.
Can a sole trader's personal home be seized for business debts?
According to the handbook, liability covers all property including personal property, except items that cannot be seized under article 444 of the Civil Procedure Code. Ask a lawyer about your own case.
Sources
The information on this page is based on the official sources listed below. Legislation changes — open the links and verify the current position.
- Министерство на икономиката — Business handbook for SME: избор на правна форма, документи и процедура (англ.) — https://www.mi.government.bg/en/business-handbook-for-sme/choice-of-legal-form-registration-documents-and-procedure/ · 2026-10-08
- Национална агенция за приходите — Годишен данък за дейност като едноличен търговец — https://nra.bg/wps/portal/nra/taxes/godishen-danak-deynost-ednolichni-targovtsi · 2026-10-08
- Агенция по вписванията — Как да подам финансов отчет (Търговски регистър) — https://www.registryagency.bg/bg/registri/targovski-registar/kak-da-podam-finansov-otchet/ · 2026-10-08
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