Single-Member Limited Liability Company (EOOD) in Bulgaria — HR & Recruitment Agency Formation Guide
Consider jurisdictions with clear labor leasing laws and favorable payroll tax structures if you plan to act as an Employer of Record (EOR). Data privacy compliance (like GDPR) is critical when handling candidate data.
Last verified: June 13, 2026
Corporate Tax
10.0%
State Tax
0.0%
Formation Cost
$30
Annual Fee
$16
Forming a Single-Member Limited Liability Company (EOOD) in Bulgaria as a HR & Recruitment Agency means a total tax burden of 10.0% and an official formation cost of $30. This guide covers the steps, tax breakdown, banking options, and compliance requirements — all from verified data.
First-year total cost
≈ $2,060
Ongoing (per year)
≈ $1,400
Why Single-Member Limited Liability Company (EOOD) for HR & Recruitment Agency?
A business model focused on sourcing, vetting, and placing candidates for client companies, or providing comprehensive human resources and payroll management services.
Ideal for
- Headhunters and executive search consultants
- Employer of Record (EOR) startups
- Freelance recruiters
- Global payroll providers
Challenges to watch
- Strict data protection and privacy regulations (GDPR, CCPA)
- Complex cross-border employment and tax laws
- High liability risks regarding employee misclassification
- Licensing requirements for temporary work agencies in many countries
Key decision criteria
- Does the jurisdiction require a specific license to operate a recruitment or staffing agency?
- Are there favorable tax treaties to prevent double taxation for cross-border placements?
- How strict are the local labor laws regarding temporary staffing and contractor classification?
Estimated breakdown (based on avg. $250,000 revenue)
Simulate with your own revenue →
VAT / Sales Tax
Standard rate 20%. Registration threshold: 51,130 EUR. Foreign providers of digital services to Bulgarian consumers must charge 20% VAT, which can be reported through the EU One-Stop Shop (OSS) scheme.
Single-Member Limited Liability Company (EOOD) formation steps
Choose and reserve a unique company name with the Bulgarian Commercial Register.
Draft the Founding Act (Articles of Association) and standard management declarations.
Notarize and apostille the Power of Attorney and specimen signatures in your home country (if forming remotely).
Courier the original apostilled documents to your legal representative in Bulgaria.
Open a capital accumulation bank account and deposit the minimum share capital of 2 BGN (1 EUR).
Submit the incorporation documents and pay the state filing fees to the Bulgarian Registry Agency.
Obtain the Unified Identification Code (UIC/EIK) upon successful registration (usually within 3-7 days).
Register for VAT (mandatory if turnover exceeds 100,000 BGN or for intra-EU B2B services) and open an operational corporate bank account.
HR & Recruitment Agency FAQ
Do I need a special license to start a recruitment agency?
It depends on the jurisdiction and your exact model. Executive search often requires no license, but temporary staffing or acting as an Employer of Record (EOR) usually requires strict licensing and capital deposits.
Which country is best for a global HR agency?
Countries with strong B2B service sectors, clear employment laws, and extensive double tax treaty networks, such as the UK, Singapore, or Estonia, are popular choices for global HR operations.
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Related terms
Key concepts you'll encounter when forming a HR & Recruitment Agency
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One-time and annual cost breakdown
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