Key Takeaways
- Bulgaria requires a license for any agencies that mediate employment in the country or abroad, with supervision under the Employment Promotion Act and labor code. Agencies must observe GDPR and anti-discrimination rules and register with the Bulgarian Employment Agency.
- Need for licensed recruitment companies rises amid labor shortages and EU mobility, notably for IT, BPO, agriculture and manufacturing sectors. Agencies link employers with the right candidates and assist with labour market planning.
- Expect a 1 to 2 month licensing timeline encompassing company registration, document preparation, application submission and official review. Ready for a potential office visit and explanations if ask.
- Fulfill eligibility criteria with clean tax & criminal record, minimum capital and appropriate office. Set up the right entity – OOD, EOOD, open a corporate bank account, prepare compliant constitutive documents.
- Put together a full application pack with business plan, address proof, director IDs, clean record and tax declarations, employment contract templates and GDPR policies. Translate into Bulgarian and notarize where needed, then pay the state fee and monitor your reference number.
- Once you’re approved, show your license, put your registration number on job ads, and continue complying. Submit periodic reports, revise registration details, renew timely, do not function or publicize prior to licensing.
Employment agency licence Bulgaria means the licence to offer employment mediation services in Bulgaria. The permit is issued by the Employment Agency pursuant to the Employment Promotion Act and related ordinances. It includes domestic placements, cross‑border mediation as well as, in certain instances, temporary staffing activities. Applicants generally require a registered legal entity, appropriate office space, qualified personnel, unblemished compliance history and an internal policy that prohibits fees to job seekers. Common steps are application form, corporate and personnel papers, state fees and document checks. Its processing takes often a few weeks, depending on completeness. The paragraphs below detail requirements, papers, deadlines and legal obligations, with links to formal references.
The Bulgarian Recruitment Landscape
Bulgaria’s recruiting scene is highly competitive. With unemployment hitting a record low of 3.7% in Q3 2022, recruiters are engaged in fierce battles for talent across various geographies and seniority levels. Bulgarian firms are grappling with labor shortages in sectors like engineering, healthcare, logistics, and seasonal farm work, prompting them to recruit cross-border talent within the EU. This scenario creates a heightened demand for licensed recruitment agencies that can effectively source rare skills and manage compliance with local labor laws.
Recruitment companies play a crucial role by connecting employers with vetted candidates, quickly assessing skills, and adhering to deadlines. They conduct local searches while utilizing EU mobility options and provide guidance on pay bands influenced by the state-determined minimum wage, which adjusts annually. Agencies also advise clients on the standard 40-hour work week, spread over five days, and rules for paid leave, sick leave, and maternity benefits. This guidance helps establish equitable offers and reduces legal exposure for employers.
Compliance is essential from day one. By law, employers are obliged to provide a written statement of the main employment terms within a month of the commencement of employment. Certified vendors assist with data capture and create clear contract language, coordinating start dates, orientation, and policy hand-offs to ensure that new employees integrate smoothly into teams and that operations remain efficient.
Key industries that rely on recruitment agencies include those with typical roles and drivers. Licensed agencies add significant value by managing volume searches, niche profiles, and EU relocation steps. They construct transparent offers that align with wage floors and working time regulations, effectively accelerating the hiring process while keeping companies compliant and resilient.
Industry | Typical roles hired | Demand drivers | Notes |
|---|---|---|---|
Information Technology (IT) | Developers, QA, DevOps, PMs | Nearshoring, global clients | Scarce mid/senior talent |
BPO/Shared Services | Support, finance ops, HR, multilingual agents | Multilingual demand, 24/7 | High volume, steady churn |
Agriculture | Pickers, packers, machine ops | Seasonal peaks | Often cross‑border sourcing |
Manufacturing | CNC, welders, quality techs | Export growth, upgrades | Skill gaps in trades |
Finance & Accounting | GL/AP, controllers, analysts, auditors | Sector growth, SSCs | ACCA/IFRS skills valued |
In summary, the role of recruitment agencies in Bulgaria is vital, especially as businesses seek to navigate labor market challenges. Their expertise not only streamlines the hiring process but also ensures that both employers and employees adhere to the necessary regulations, ultimately fostering a more robust workforce.
Understanding the Legal Framework
Bulgaria governs private recruitment under a blend of employment, data, and equality legislation. The key legislation is the EPA, which regulates job-mediation services and licensing, and the Labor Code, which establishes employment minimum standards. The Protection Against Discrimination Act and Personal Data Protection Act (GDPR-aligned) complete the regulations that agencies must comply with when sourcing, screening, and placing candidates. To ensure compliance, a reputable recruitment agency must stay updated with these laws.
Anybody or company who brokers work in Bulgaria or from Bulgaria to another country must have a licence from the Bulgarian Employment Agency. The licence encompasses domestic placements as well as cross-border recruitment. Applicants register to the Employment Agency and have to demonstrate professional responsibility, appropriate internal regulations and observance of data and anti-discrimination law. The EPA prohibits charging candidates fees. Terms of service must be expressly in writing with client employers. Agencies need to include the licence number on public-facing materials so that clients and candidates are able to check the status.
Licensed businesses must be listed in the Employment Agency’s public register and keep their records up to date. Sample files may contain job orders, placement agreements, consent forms, data logs, and invoices to employers. Agencies are responsible for reporting placements periodically and must inform the agency of any changes in legal form, management, address, or scope of services promptly. Good practice includes maintaining a retention schedule linking every record category to a lawful basis and retention period, which is essential for effective staff recruitment.
The regulations cover GDPR, labor, and equality rules. Under GDPR, agencies require a defined lawful basis for CV collection, privacy notices, secure storage, role-based access, and protections for cross-border transfers, such as standard contractual clauses. The Labor Code stipulates working time and rest: a normal week consists of up to 40 hours over five days; night work is limited to 35 hours per week over five seven-hour days. Employees are entitled to two consecutive rest days weekly, typically including Sunday, and daily hours can reach 12 only under open-ended or aggregated regimes. In cases of mass redundancy, specific rules are triggered when dismissals within 30 days reach certain thresholds, requiring consultation and notification procedures.
Protection from dismissal extends to mothers of children under three, occupational rehabilitees, and employees with specific diseases listed in a health ordinance. Additionally, employees on authorized leave, elected employee representatives, and members of European Works Councils or similar bodies enjoy protection. Categories of prior protection include mothers of young children, disability reassigned staff, and employees with listed illnesses. If employment terminates due to sickness, qualifying employees receive two months’ gross pay, provided they have a minimum of five years’ service with the employer and have not received such compensation within the past five years. Pay practices are also crucial; whether extra pay is deemed ‘permanent’ depends on the contract, internal rules, and actual practices, prompting agencies to reflect recurring allowances in offers while avoiding vague ‘discretionary’ labels.
How to Get Your Employment Agency Licence in Bulgaria
Prepare to wait 1–2 months, depending on how quickly you collect papers and respond to follow‑ups. Meet basic eligibility: clean tax record for owners and managers, minimum paid‑in share capital per your company type, and a suitable, accessible office space. Additionally, consider engaging a recruitment agency to assist in staff recruitment and prepare a concise business plan that describes services, sectors, candidate sourcing, client onboarding, and data controls.
Register a company and deposit share capital.
Prepare documents and translations.
Submit the application to the Bulgarian Employment Agency and pay the state fee.
Undergo review and possible on‑site check.
Once approved by the FSC, obtain your licence and registration number. Steps may differ, since not all information is public, so allow for additional demands.
1. Company Registration
Pick a legal form that fits scale and liability: OOD or EOOD for small to mid teams; a joint stock company if you have larger capital in mind, multiple investors, or listings to come.
Register in the Bulgarian Commercial Register and get a special company number. Designate directors, prepare articles that cover scope of ‘employment mediation’ or ‘temporary employment’, signatory authorities.
Open a corporate bank account and deposit the statutory share capital. This bolsters credibility in review and is frequently scrutinized with your tax and social security configuration.
2. Required Documents
Prepare a full set for your recruitment agency: company registration certificate, IDs for directors, proof of office address (lease or title), and a business plan that maps sourcing channels, sector focus, pricing, and compliance routines. Include a clean criminal record and tax declarations for all owners/managers. Provide sample mediation contracts, temporary staffing agreements, and GDPR-compliant data policies with retention provisions and breach responses. Recruiters manage sensitive data at scale, so show evidence of secure databases and access logs. Additionally, include any HR consulting service descriptions if provided. Have all documents translated into Bulgarian and notarized wherever necessary.
3. Application Submission
Submit the form and supporting documentation to the Bulgarian Employment Agency, and pay the relevant state fee (fees are variable: see work permit and visa fees, which depend on type and duration).
File online where possible via official portal, or submit hard copies. Save the reference number for status tracking.
4. Official Review
Authorities verify compliance with legal requirements, financial soundness, personnel, and office equipment.
Expect clarification requests; respond fast to avoid delays.
Get ready for an office audit in terms of records, data protection and accessibility!
Usual review takes around 30 days if files are in order.
5. Licence Issuance
Once approved, you will be granted a licence and a specific registration number for mediation or temporary employment. The Financial Supervision Commission grants licences for recruitment companies.
Display the certificate at your office and mention the number in advertisements. Maintain websites and job posts in line with the licence scope.
Comply with Bulgarian labor and immigration regulations, such as labor market tests for non‑EU recruits, and renew the licence prior to expiration to prevent fines. Look into wider services such as HR consulting as you scale.
Post-Licence Operational Duties
Once licensed in Bulgaria, agencies have to move from filing to ongoing, compliant operate. Operational work falls under the Labour Code and the Employment Promotion Act, with temporary work additionally bounded by Article 107p of the Labour Code.
- Keep licence active: pay annual renewal fees and file any change in address, directors, scope, or shareholding with the Bulgarian Employment Agency.
- Submit activity reports on time: placements, client sectors, and any cross-border mediation, in the format and cycle the Agency sets.
- Maintain GDPR-grade data controls: lawful basis for processing, clear notices, narrow data collection, secure storage, and timely responses to access or erasure requests.
- Apply equal treatment: job ads, screening, and interviews must avoid bias and follow anti-discrimination rules.
- Use Article 107p correctly: deploy temporary workers only for the listed reasons and within time limits. Record the legal basis for each task.
- Sign compliant contracts: ensure temporary work contracts meet Article 107p terms, including pay, working time, rest, and health and safety.
- Agree clear tripartite roles: agency provides the worker, user company directs daily work, and the user company handles discipline and performance.
- Align payroll and taxes: the economic employer (the user company) is liable for withholding personal income tax and social security in Bulgaria, not the agency.
- Track working time: breaks, overtime, night work, and leave in line with Bulgarian rules. Maintain records available for review.
- Manage cross-border cases: confirm EU posting rules, A1 certificates, and host-state pay floors when relevant.
Agencies are required to provide periodic reports to the Bulgarian Employment Agency. Standard line items are candidates registered, placements by industry, open vacancies, and any cross-border mediation. Maintain source documents–job postings, contracts, timesheets–so there’s something to audit the numbers against. A simple example: monthly tally of placements and quarterly consolidation with anonymized candidate IDs.
Compliance encompasses both the workflow and the workfloor. On a project, the user company handles scheduling, tools, safety meetings and performance problems. Agencies audit user companies for safe sites, equal pay vs comparators and lawful grounds for the assignment under article 107p. Where assignment length caps exist, keep track of start and end dates and take a break before any extension.
Pay renewal fees in advance of the deadline and update registration particulars within the period stipulated by the Agency. Failing either can suspend your licence.
Common Pitfalls to Avoid
The licensing road for a recruitment agency in Bulgaria is full of twists and turns, especially regarding the application process for work permits. The majority of issues arise from skipped steps, poor documentation, or not understanding how immigration and labor regulations intersect with the recruitment services license itself.
- Operating without a valid license: Running or mediating hires before license approval can trigger steep fines and even closure. They can block future apps.
- Poor planning and timelines: Build in at least a month for work permit steps, and expect up to 35 working days (about 7 weeks) for the Type D visa from the consulate appointment date. Build in buffer for peak seasons and holidays.
- Advertising or mediating too early: Posting job ads, sourcing candidates, or brokering contracts before the license is issued is unlawful. Even “test” job board or social media ads can flag.
- GDPR and labor law gaps: Collect only needed data, store it securely in the EU, set clear retention rules, and share privacy notices. Check equal pay, working time and minimum wage rules. Audits and fines are par for the course.
- Skipping the embassy interview: The Type D visa requires an in-person interview at the Bulgarian embassy or consulate. Missed or late slots tend to add weeks.
- Confusion over visa types: Bulgaria has three main entry visas. Not everyone needs a work permit (EU citizens usually don’t). Avoid the typical mistakes. Incorrect choices cause rejections.
- Ignoring foreign worker quotas: The cap is usually 10% of staff (higher for small firms). Example: with 12 local staff, one non-EU hire may be allowed. Headcount plan before recruiting.
- Missing residence steps: After work permit approval and a Type D visa, the employee must register for a residence permit within 90 days of entry.
- Weak documentation for freelancers: A viable business plan, at least two years of relevant experience, and proof of funds or steady income are required. purchase orders, invoices, or bank statements.
- No business or tax registration: Self-employed persons must register and pay taxes and social contributions. Overlooking this can stymie renewals.
- Renewal surprises: Most work permits renew yearly with similar fees. Seasonal permits are employer/sector-specific and cannot rollover to longer-term permits without leaving and reapplying.
- Formalities missed: Use sworn Bulgarian translations and notarization/apostille where required. Incomplete paperwork bogs down files.
Our End-to-End Agency Support
Designed for international founders and recruiters seeking recruitment services, we provide a direct route into Bulgaria’s market by handling setup, licensing, and growth while ensuring compliance.
Company formation, employment agency licensing, and registration
We establish your Bulgarian company and create a suitable legal form while also booking the name and drawing up articles to file with the Commercial Register. For the employment agency licence, we gather needed documents such as an office lease and equipment list, coordinate with the Employment Agency, and submit the application form. Our end-to-end support includes labor market testing when required, work visa filings, and direct liaison with local authorities. The work permit process typically takes 10–30 days, depending on the type and role, as we monitor permit and visa fees based on type and duration.
Ongoing accounting, payroll, and tax optimization for recruitment firms
We operate payroll, social security, and health insurance under Bulgarian regulations and EU norms, ensuring compliance with the recruitment agency standards. We determine timesheets, overtime, and the appropriate base for contributions while managing VAT, CIT, and withholding requirements for cross-border arrangements. You receive monthly closes, cost-by-contract views, and clean audit trails. Our team advises on tax obligations and social charges for direct hires and agency workers, developing easy budgets for work permits and translations to maintain transparent cash flow.
Legal support, HR hiring, and compliance management
Our lawyers vet client terms, subvendor deals, and fixed-term contracts to ensure that working conditions are documented and legal. We craft compliant onboarding and privacy notices while maintaining proper record keeping. Additionally, we track labor law and immigration shifts that impact staffing models, particularly through the lens of recruitment agencies. Where temporary services face unique regulations, we adapt placements to align with what’s permitted, ensuring a smooth process for client employers and employees alike.
Long-term partnership on growth, efficiency, and regulatory updates
We map hiring funnels, minimize time-to-fill, and optimize document flows for our recruitment agency. Additionally, we conduct compliance audits and update policies regularly to ensure adherence to labor market tests and work visa requirements. We send alerts on new rules and permit forms while benchmarking agency fees and tuning processes as volumes increase.
Conclusion
An employment agency license Bulgaria About: employment agency licence bulgaria Clear steps, not guesswork. Be aware of legislation. Lodge fresh forms. Maintain logs. Renew timely. That route suits a two-person shop in Varna or a tech recruiter in Sofia. Skip a permission slip, and you screech to a halt. Miss a report, and you face a fine. Go through the checks, and you begin to map individuals swiftly.
Real victories appear easy. Publish prices on your website. Have clear client terms. Educate employees on information policies. Record every hire with dates and contacts. Establish a review each quarter. Close gaps before they become big.
Want a reliable hand from file to launch to audits? Our team can map the steps, prep every file and stand with you after go-live. Contact us for a quick chat to strategize your next step.
Frequently Asked Questions
Who issues the employment agency license in Bulgaria?
The Employment Agency under the Ministry of Labor and Social Policy grants a license to recruitment agencies to mediate in job placement. Applications are submitted to the Employment Agency, which examines them for compliance with the Employment Promotion Act and associated regulations.
What are the basic requirements to get licensed?
To comply with Bulgarian labor laws, you require a Bulgarian registered entity or branch, an office meeting the law’s standards, qualified personnel, and internal procedures, including equitable recruitment practices and clean criminal records from managers.
How long does the licensing process take?
Processing usually finishes within around a month of submitting a full file to the recruitment agency. Timelines may differ if the authority, such as the migration directorate, seeks clarifications or additional documentation.
Can a foreign-owned company apply?
Yes. Foreign investors may establish a Bulgarian company or register a branch through a recruitment agency and make an application for the license. It is essential to have local representation, a Bulgarian address, and translated documents by a Bulgarian certified translator where necessary.
Are agencies allowed to charge candidates?
Under Bulgarian law, recruitment agencies do not charge mediation fees to job seekers; instead, they receive compensation from the respective employer. Agencies must provide candidates with written details about vacancies, conditions, and rights before placement.
What ongoing obligations apply after licensing?
You need to publicly present your recruitment agency licence information, maintain contract templates, keep records, and protect personal data (GDPR). Additionally, send activity reports to the Employment Agency and inform authorities of changes (address, managers, scope) as part of the compliance process.
Do I need a separate license for cross-border placements?
Frequently, it does. Cross-border mediation through a recruitment agency might necessitate extra paperwork and arrangements with overseas employers. Ensure that employment contracts satisfy both Bulgarian law and the destination country’s rules, such as language and worker protection provisions.
Daniel Malbašić is a business expert with extensive experience in the field of business consulting, organization and business optimization. His expertise includes market analysis, strategic planning, and implementation of effective business solutions. Daniel is dedicated to helping companies grow and improve their operations, providing them with comprehensive support in making key business decisions.