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Single-Member Limited Liability Company (EOOD) in Bulgaria — Mobile App Developer Formation Guide

When choosing a jurisdiction, consider where Apple and Google will send your payouts. Ensure your chosen country has favorable double taxation treaties with the US to minimize the default 30% withholding tax on your US app sales.

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 Mobile App Developer 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

Detailed cost calculator →

Why Single-Member Limited Liability Company (EOOD) for Mobile App Developer?

Independent developers or small studios creating and monetizing applications on platforms like the Apple App Store and Google Play. Revenue streams typically include paid downloads, in-app purchases (IAPs), subscriptions, and in-app advertising.

Ideal for

  • Indie developers
  • Small gaming studios
  • SaaS mobile app creators
  • Freelance developers transitioning to product owners

Challenges to watch

  • High platform fees (15-30% from Apple/Google)
  • US withholding tax on royalties if no tax treaty exists
  • Managing global VAT/GST compliance for digital services
  • Protecting intellectual property across borders

Key decision criteria

  • Double taxation treaties with the US
  • Corporate tax rates on digital income
  • Ease of opening a business bank account compatible with App Store payouts
  • IP protection laws in the jurisdiction

Estimated breakdown (based on avg. $85,000 revenue)

Gross Revenue$85,000
Corporate Tax-$8,500
Formation Cost-$30
Annual Fee-$16
Net Profit$76,454

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

1

Choose and reserve a unique company name with the Bulgarian Commercial Register.

2

Draft the Founding Act (Articles of Association) and standard management declarations.

3

Notarize and apostille the Power of Attorney and specimen signatures in your home country (if forming remotely).

4

Courier the original apostilled documents to your legal representative in Bulgaria.

5

Open a capital accumulation bank account and deposit the minimum share capital of 2 BGN (1 EUR).

6

Submit the incorporation documents and pay the state filing fees to the Bulgarian Registry Agency.

7

Obtain the Unified Identification Code (UIC/EIK) upon successful registration (usually within 3-7 days).

8

Register for VAT (mandatory if turnover exceeds 100,000 BGN or for intra-EU B2B services) and open an operational corporate bank account.

Mobile App Developer FAQ

Do I need a US company to publish on the App Store?

No, you can publish from almost any country. However, having a US LLC or a company in a country with a US tax treaty can significantly reduce the 30% withholding tax on US sales.

How does VAT work for app sales?

Apple and Google generally act as the 'Merchant of Record' and handle VAT/GST collection and remittance for consumers in most countries, simplifying your tax compliance.

Where is the best place to incorporate an app studio?

Popular choices include the US (Wyoming/Delaware LLCs for low maintenance), UK (favorable tax treaties and IP laws), and Estonia (0% tax on reinvested profits, great for growing studios).

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