How to Check a Bulgarian Company: Debts, Lawsuits, and Due Diligence in 2026

Introduction

Before buying a business, acquiring property, signing a contract, investing, or extending deferred payment terms to a Bulgarian counterparty, conducting a thorough company check — a Due Diligence — is strongly recommended.

Experience shows that the majority of problems in transactions involving Bulgarian companies are not the result of outright fraud, but of less obvious risks:

• • undisclosed debts to creditors and suppliers;
• • outstanding tax liabilities to the state;
• • ongoing or concluded court disputes;
• • active enforcement proceedings;
• • de facto insolvency of the counterparty;
• • pending bankruptcy or liquidation procedures.

The good news is that a significant proportion of information about Bulgarian companies is public and available online. The Trade Register, financial statements, the Pledge Register, and the Property Register are all open sources that allow a preliminary check to be conducted independently, without engaging a lawyer. However, for transactions above €50,000 — whether a business acquisition, property purchase, or long-term contract — a professional legal Due Diligence is the mandatory standard.

This guide covers all 10 steps of checking a Bulgarian company: from a basic Trade Register search to a full Legal Due Diligence covering court cases, enforcement proceedings, and tax obligations.

Step 1. The Bulgarian Trade Register — The Starting Point of Any Check

The first and mandatory step in checking a Bulgarian company is analysing data in the official Trade Register (Търговски регистър). The register is maintained by the Bulgarian Registry Agency and is publicly accessible.

How to Find a Company

Official resource: portal.registryagency.bg

Search is available by:

• • company name (full or partial);
• • EIK — the unique identification code (equivalent to a tax or company registration number);
• • director’s name;
• • founder or shareholder name.

The EIK is a unique 9-digit identifier assigned to every Bulgarian company upon registration. Knowing a counterparty’s EIK significantly speeds up the check and eliminates errors when searching for companies with similar names.

What to Check in the Trade Register

Step 2. Financial Statements — Reading the Numbers

Most Bulgarian companies are required to publish annual financial statements in the Trade Register. The only exceptions are micro-enterprises meeting specific criteria. Access to financial statements is free of charge.

Financial Indicators Checklist

Key items to analyse:

• ☐ Revenue for the past 3 years
• ☐ Net profit / loss
• ☐ Total liabilities (current and long-term)
• ☐ Equity (net assets)
• ☐ Accounts receivable
• ☐ Accounts payable
• ☐ Existence of bank loans

Red Flags in Financial Statements

Step 3. Checking for Bankruptcy and Liquidation Proceedings

The Trade Register publishes information on the current legal status of a company, including any initiated insolvency (bankruptcy) or liquidation proceedings. This is one of the fastest and most critical elements of any check.

Possible Company Statuses

Step 4. Checking Court Proceedings

This is one of the most important and frequently underestimated steps. A company that appears financially sound on paper may simultaneously be involved in dozens of court disputes whose outcome could fundamentally alter its position.

What to Look For

The Bulgarian court system maintains an open case registry. All of the following categories require investigation:

• • commercial disputes (debt recovery, breach of contract);
• • employment disputes with former employees;
• • tax disputes with the National Revenue Agency (NRA);
• • bankruptcy proceedings initiated by creditors;
• • disputes with state authorities and regulators;
• • enforcement proceedings cases.

How to Analyse Court Cases

Step 5. Checking State Tax Liabilities

There is no direct public database of all Bulgarian companies’ tax debts — unlike some EU countries. Nevertheless, as part of a comprehensive check, a company’s tax position can be assessed through several routes.

Methods for Checking Tax Liability

Step 6. Checking Enforcement Proceedings

A won court case does not mean a recovered debt. Enforcement proceedings are the next, compulsory stage of collection — and information about them is critically important when assessing a company’s real financial position.

What Enforcement Proceedings Checks Reveal

• • active debt recovery by private or state enforcement agents;
• • freezing of the company’s bank accounts;
• • attachment of movable and immovable property;
• • imposed restrictions on the disposal of assets;
• • details of creditors who have initiated compulsory recovery.

Step 7. Checking the Company’s Property Through the Property Register

If the company owns property — offices, warehouses, retail premises, land plots — this property requires a separate check through the Bulgarian Property Register (Имотен регистър).

Property Checklist

• ☐ Property is actually registered in the name of the company being checked
• ☐ No mortgages, or any mortgage is understood and manageable
• ☐ No attachment orders on property
• ☐ No court restrictions or encumbrances
• ☐ No active enforcement measures against the property
• ☐ Legal history of the property — number of ownership transfers

Step 8. Checking Pledges and Security Interests

Bulgaria maintains a separate Central Register of Special Pledges (Централен регистър на особените залози). Through it, any pledges over a company’s movable assets can be identified.

What the Pledge Register Reveals

• • pledges over production equipment and machinery;
• • pledges over vehicles (company fleet);
• • pledges over company shares (OOD/EOOD shareholding);
• • pledge over the business as a going concern;
• • pledge over trademarks, licences, and intellectual property.

Step 9. Checking Beneficial Owners (UBO)

Since 2018, Bulgaria — in line with all EU member states — has required companies to register information about their ultimate beneficial owners (UBOs) in the Trade Register. These are individuals who directly or indirectly control more than 25% of the company or exercise other decisive influence over its activities.

When UBO Verification Is Especially Important

• • in international transactions and investments;
• • when acquiring a shareholding or the entire business;
• • when assessing sanctions risk (individuals on EU, US, or UK sanctions lists);
• • when working with companies with an opaque ownership structure;
• • when fulfilling AML/KYC compliance requirements.

Step 10. Professional Legal Due Diligence

When acquiring a company or major commercial property, entering into a long-term contract, or investing in a Bulgarian business, an independent check through open registers is only the first level. A full legal Due Diligence is conducted by a lawyer and covers all critical aspects.

Structure of a Professional Due Diligence

When Professional Due Diligence Is Required

• • when acquiring a shareholding in a Bulgarian company or the entire business;
• • when purchasing commercial property valued above €100,000;
• • when entering into a contract with obligations exceeding €50,000;
• • when investing in a Bulgarian startup or manufacturing project;
• • when extending trade credit or deferred payment terms to a new counterparty;
• • in mergers and acquisitions involving Bulgarian assets.

Key Signs of a Problematic Bulgarian Company

Red Flags Checklist

• ☐ Company has existed for less than 1 year
• ☐ Frequent change of directors (3+ times in 2 years)
• ☐ No financial statements published
• ☐ Negative or minimum share capital
• ☐ Negative equity (liabilities exceed assets)
• ☐ Losses for 2+ consecutive years
• ☐ Active court disputes with creditors
• ☐ Active enforcement proceedings
• ☐ Open liquidation or bankruptcy procedure
• ☐ Multiple pledges over key assets
• ☐ Attachment orders on property or bank accounts
• ☐ Discrepancy between registered and actual address
• ☐ Undisclosed UBO or clearly nominal beneficial owner

Practical Algorithm for Checking a Bulgarian Company