Investment firm authorisation License in Bulgaria

• €75,000 (Limited Scope): Receives, transmits, and executes client orders, or provides investment advice. The firm is not permitted to hold client funds or trade on its own account

• €150,000 (Intermediate): Executes client orders and manages individual portfolios. Permitted to hold client funds but cannot deal on its own account

• €750,000 (Full/Market Maker): Authorized for all investment actions, including dealing on own account and underwriting financial instruments

• Must be registered as a Limited Liability Company (OOD/EOOD) or a Joint-Stock Company (AD) in the Bulgarian Commercial Register

• At least 25% of the initial minimum capital must be deposited into a local bank account during the application phase. The remainder must be fully paid within 14 days of licensing approval

• Submission of a comprehensive 3-year business plan, detailed financial forecasts, internal risk assessment matrices, and clear compliance/AML manuals

• The intermediary must be jointly managed and represented by at least two Executive Directors (Board Members)

• Directors and major shareholders must pass a strict fit-and-proper test evaluation by the FSC. They must hold higher education degrees relevant to financial management, possess clean criminal records, and have solid financial reputations

• The firm must hire dedicated personnel for specific internal control positions:

  • Compliance Officer

  • Risk Manager

  • Internal Auditor

  • AML Officer

• Physical Substance: The firm must maintain a fully functioning physical office inside Bulgaria. Virtual offices are rejected during the licensing review

• Infrastructure: Adequate technical equipment, secure IT servers, trade processing systems, and continuous data backup strategies must be implemented locally

Operating under MiFID II compliance allows the Bulgarian FSC license to be seamlessly passported across all 27 EU and EEA member states

This gives firms the legal framework to offer cross-border investment services or set up local branches throughout the Single Market without needing separate licenses

Bulgaria operates one of the most competitive tax environments in Europe

• Corporate Income Tax: A flat 10% rate

• Dividend Tax: A flat 5% rate on distributions

• VAT: A standard rate of 20%. However, specific core financial and investment services remain exempt from VAT under European law directives

• Financial tracking must comply with International Financial Reporting Standards (IFRS) as adopted by the EU

• Annual financial balance sheets must undergo external audits performed by an independent, certified public accountant

• Ongoing disclosures, capital adequacy status reports, and transaction data must be continuously provided to the FSC and the Bulgarian National Bank (BNB) according to European MiFIR frameworks