Escrow account — what you need to know
An escrow account is a special temporary bank account through which the founding capital is deposited when registering an EOOD or OOD. Without it you cannot obtain the certificate of deposited capital that is attached to the application to the Commercial Register. Here is what you need to know in 2026 if you are incorporating a limited liability company.
What Is an Escrow Account and Why Is It Mandatory?
For limited liability companies the law requires the subscribed capital to be deposited before registration. The escrow account acts as a temporary holding account — the funds are earmarked for the founding contribution until the bank issues a certificate or deposit slip with which you prove to the register that the capital is in place.
The minimum capital for an EOOD/OOD is 1 EUR. The amount on the bank document must match the amount in the Articles of Incorporation or the Company Agreement.
Which Banks Offer an Escrow Account?
Most major banks in Bulgaria service company incorporations. Among the commonly used ones are DSK, UniCredit Bulbank, Postbank, Fibank, UBB, Raiffeisenbank and others. Terms, timelines and fees differ by branch and product — compare offers before choosing, especially if you plan to use the same bank afterwards for a current account and POS.
What Documents Are Required?
Typically the bank requires:
- Articles of Incorporation (for an EOOD) or Company Agreement (for an OOD) — at the incorporation stage some banks accept a draft or finalised text according to their internal rules;
- Owner's resolution / minutes of the founding meeting — depending on the company type;
- Personal identification documents of the persons opening the account;
- where needed — a power of attorney and a notarially certified specimen signature of the manager (some banks require this even for the escrow account).
The exact list is provided by the bank at the counter, in a form or in an online process for companies "in the process of incorporation." If the founder and the future manager are different persons the bank may ask for additional powers of attorney — clarify this in advance to avoid a second visit.
It is important that the amount on the bank certificate matches the amount described in the founding documents; a mismatch may lead the Commercial Register to request a correction or refuse registration.
Fees
- Opening an escrow account — typically in the range of about 5–20 € equivalent; some banks offer it free of charge under certain conditions or packages (check the current tariff).
- Capital deposit — usually without a separate bank fee except for possible currency conversion if you deposit in a foreign currency under the bank's terms.
When comparing offers also include the conversion fee and monthly maintenance of the future current account — some banks offset a low escrow fee with a higher business package after registration.
Process: Opening → Deposit → Certificate
- Choose a bank you would also like to work with after registration (see the tip below).
- Submit the documents and open an escrow account in the name of the company "in the process of incorporation."
- Deposit the capital (minimum 1 EUR) into the account.
- Receive the certificate / deposit slip — attach it to application A4 in the Commercial Register.
You can prepare the entire incorporation process with Firmify to ensure the amounts in the documents match the bank certificate.
Timelines
In many cases opening the account and issuing the capital deposit document happen on the same business day if the documents are complete and the branch workload permits. If documents are missing or the branch is busy the process may be delayed — plan a 1–2 business day buffer.
After Company Registration
After you receive your UIC, the escrow account is usually converted into a current account or closed, and a new company account is opened for operations. Check with the branch whether the balance is transferred automatically to the new account or whether a separate request is needed.
For documents and bank requirements after incorporation see Opening a Company Bank Account. For a KYC package and onboarding to a bank of your choice: bank onboarding.
Tip: Choose a Bank for the Long Term
The escrow account is a short phase, but the same bank often becomes your partner for POS, corporate cards, EUR accounts and loans. If you already know which products you will need (international transfers, Stripe integration, exports), discuss them when opening the escrow account — this saves time on the subsequent opening of a current account.
If you plan online sales immediately after registration, ask about a business package with internet banking, EUR transfer limits and the ability to connect payment processors — the KYC requirements for the operating account are more extensive than those for the escrow account, but an early conversation eases the transition.
Frequently Asked Questions
Can the capital be in a different currency? You usually deposit an amount equivalent to the amount recorded in the founding documents; the bank issues a document that must correspond to those values. Clarify the exchange rate and the format of the certificate when opening the account.
What happens if I change the capital amount before filing? You must update the founding documents and deposit the corresponding amount again — a mismatch between the text and the bank slip is a common cause of registration delays.
Quick Reference
| Question | Answer |
|---|---|
| Why is it needed? | Proof of deposited founding capital |
| Minimum capital | 1 EUR (as of 2026) |
| Timeline | Often the same business day |
| After Commercial Register | Conversion or new current account |
Ready for the next step? Prepare the founding documents with Firmify, read the bank account guide and if needed start the bank onboarding for a document package to a bank of your choice. Firmify helps you structure the incorporation so you get through the bank and the Commercial Register faster.
Bank Branches by City
See specific information about bank branches and escrow account conditions in your city: Sofia, Plovdiv, Varna, Burgas.