IT company — how to start?
Starting an IT services company in Bulgaria is a natural step for programmers, QA specialists, DevOps engineers, cybersecurity consultants and digital agencies that already work with clients locally or abroad. Below you will find practical guidance on legal form, NACE codes, VAT, banking, accounting and manager insurance — without replacing individual advice from an accountant or tax specialist.
Why IT Professionals Need a Company
Even with moderate turnover, a legal entity makes daily work and growth easier:
- Invoicing — corporate clients, agencies and freelance platforms often require an invoice from a registered company; this makes documents clear for accounting, audit and compliance with contractual requirements.
- Trust and contracts — a company with a UIC looks more serious in B2B partnerships, tenders and long-term framework agreements.
- Tax planning — with an EOOD profits are taxed at corporate tax (10% as of 2026), and the separation between personal and company finances is clearer than with a sole trader; dividends and expenses under the Corporate Income Tax Act can be planned as needed.
If you are still comparing forms, also see EOOD vs Sole Trader — Which to Choose?. For a general overview of start-up costs see How Much Does Company Registration Cost in 2026?.
EOOD or ET for IT Activity?
| Criterion | EOOD | ET |
|---|---|---|
| Liability | Limited to capital | With all personal assets |
| Client image | Suitable for B2B and international | Possible, but more often a "personal" brand |
| Administration | More formalities | Lighter start |
| Social contributions | Manager is often self-insured | Contributions as a trader |
For most IT professionals aiming for stable contracts, growth and work with foreign counterparts, an EOOD is almost always the more practical choice — a balance between limited liability and a professional image. The full registration guide: Registering an EOOD in Bulgaria.
NACE Codes for IT Activity
The NACE code (classification of economic activities) must reflect your main activity. Common codes for IT:
- 62.01 — software development
- 62.02 — IT consultancy and management of IT infrastructure
- 62.09 — other IT and computer services
- 63.11 — data processing, hosting and related activities; web portals
You can have a primary and secondary codes if you offer a mix of services (e.g. development + support + cloud).
Registering an IT Company — In Brief
- Choose a name and check it in the Commercial Register (reserve with D1 if needed).
- Prepare the Articles of Incorporation, owner's resolution, declarations, specimen signature (notarially certified).
- Open an escrow account and deposit the minimum capital (typically 1 EUR).
- File application A4 electronically with a QES (Qualified Electronic Signature) or on paper.
- After registration — UIC, BULSTAT registration if required, choose an accountant.
The online process is summarised in How to Register a Company Online — Step by Step. You can start directly from the registration page.
VAT: EU Clients and Art. 97a
- Domestic supplies — with turnover below 51 130 € for the last 12 months (threshold under Art. 96 of the VAT Act) you are not mandatorily VAT-registered; you can stay outside the system or enter voluntarily (Art. 100 of the VAT Act) if it is advantageous for input credit and your counterparts.
- Services from/to the EU — when receiving services from EU suppliers or providing services to taxable persons in other Member States, Art. 97a of the VAT Act often applies — a separate registration with specific obligations. This affects many IT companies with hosting, advertising, cloud services and B2B contracts within the EU.
Full overview: VAT Registration in Bulgaria.
Banking and International Payments
After registration you open a current account for the company. For clients outside Bulgaria SEPA transfers, Wise, PayPal or Stripe are typical — the choice depends on currency, fees and integration. Make sure contracts and invoices reflect the correct place of supply and the tax treatment for cross-border services.
If you invoice in EUR or USD, check with the bank about fees for incoming transfers and whether additional documentation on the origin of funds is needed for larger amounts. For long-term contracts with foreign clients, framework agreements with work-volume annexes are often signed — they simplify accounting and any future audit. For bank onboarding and the document package for the bank see opening a company bank account and bank onboarding.
Accounting for an IT Company
The minimum usually includes:
- tracking income and expenses, archiving invoices and contracts;
- filing monthly or quarterly returns depending on the regime;
- annual financial statements and other reports as required.
With VAT registration you add VAT returns and potentially VIES for intra-Community transactions. For the tax framework of a new company see also Taxes for a New Company — Complete Guide for 2026.
Social Contributions: Self-Insured Manager
A manager of an EOOD is often on self-insurance via a management contract. Contributions depend on the chosen insurable income (within the statutory minimums and maximums for the respective year). Social and health contributions are a significant part of the expense — plan for them when forecasting revenue.
More details: EOOD Manager Insurance — Complete Guide.
Ready to register your IT company? With Firmify you prepare the documents for an EOOD online in minutes, and the full registration guide is here: Registering an EOOD in Bulgaria. Start at Firmify — company registration and save time preparing the founding package.