You've probably seen company formation in Bulgaria advertised for EUR 149-499. We charge EUR 700-999. Here's what that difference buys you — and why it matters when your tax residency, legal liability, and financial future are at stake.
Formation agents and law firms both help you set up a company. But that's where the similarity ends. Here are the differences that matter.
| Feature | Formation Agent | Law Firm (Innovires) |
|---|---|---|
| Regulated by | Not regulated (commercial service) | Bulgarian Bar Association — regulated, licensed, insured |
| Legal advice | Cannot give legal advice (not licensed) | Full legal counsel — can advise on tax, structure, visa |
| Legal privilege | None — communications not protected | Attorney-client privilege — confidential, court-protected |
| Court representation | Cannot represent you | Can represent you before courts, NRA, Migration |
| Professional insurance | Typically none | Mandatory professional liability insurance |
| Personal liability | Company liability only (often minimal capital) | Attorney personal + firm liability |
| Tax structure advice | "We register your company" — no guidance on optimal structure | "Here's whether you should be freelancer, EOOD, or employed — and why" |
| Exit tax coordination | Not equipped | Coordinate with your home-country tax adviser |
| Visa & residence support | Basic or outsourced | Direct handling — we appear at Migration Directorate with you |
| Power of attorney | Standard template | Legally drafted, notarized, tailored to your situation |
| Problem resolution | "Contact a lawyer" | We ARE the lawyer — problems resolved in-house |
| Ongoing support | Registration only, then goodbye | Ongoing relationship — annual compliance, changes, questions |
| Bank account support | "Here's a list of banks" | We accompany you to the bank, prepare all KYC documents |
| Due diligence | Minimal identity check | Full AML/KYC due diligence (legally required) |
| Document quality | Template-based | Individually drafted, legally reviewed |
These are real situations we've seen from clients who initially used formation agents. Names and identifying details have been changed.
A freelance developer registered an EOOD on the advice of a formation agent. An EOOD pays 10% corporate tax + 5% dividend tax (15% combined) on all profits. As a freelancer with the 25% expense deduction, their effective rate would have been roughly 7.5%. No one advised them because formation agents cannot give legal advice.
Company registered, Bulgarian address obtained — but the residence card was never applied for at Migration Directorate. When the client applied for a tax residency certificate from NRA, it was rejected. Their home country maintained tax residency, resulting in an unexpected assessment.
A formation agent provided a registered address that the bank flagged as a "virtual office." The bank refused to open an account. The company was legally registered but couldn't receive payments or pay invoices for two months while the issue was resolved.
A Belgian client relocated to Bulgaria without analysing their exit tax obligations. They discovered the issue 18 months later. Deferred status was questionable because no proper documentation had been filed at departure. A 30-minute conversation with a lawyer before the move would have prevented this entirely.
A power of attorney drafted by a non-lawyer was rejected by the Bulgarian Commercial Registry. The company registration was delayed by three weeks. The client had to fly to Sofia in person to sign corrected documents — flights, hotel, lost work days.
Every engagement includes legal advice, not just paperwork. Here is what our clients receive.
Every situation is different. Book a free consultation and we will send you a tailored quote based on your specific needs.
Relocating to another country is one of the biggest financial decisions you will make. The difference between a correct setup and a flawed one can be tens of thousands of euros.
We handle the legal analysis, the structure decision, the registration, the residence, the bank, and the tax setup as one integrated process. One team, one invoice, no gaps. And if something goes wrong later, you have a licensed attorney on your side — not a customer service email.
Book a free 15-minute call. We assess your situation and recommend the right approach — structure, residence, tax, bank, everything.