Bulgaria - Company Types

The Bulgarian Commercial law allows for the following types of business organisations:

  • Private limited company.

The most appropriate types of companies for carrying out business in Bulgaria are: a private limited company, a public limited company, a single member private limited company. All of these have to be entered into the commercial register kept with the relevant district court.

Private Limited Company - limited liability company - OOD - (Druzestvo s ogranichena otgovornost - DOO)

It is a commercial company with share capital owned by its members whose liability is limited to the amount of the capital subscribed. A private limited liability company may be founded by one or more persons, including foreign natural or legal persons. The minimum foundation capital is Leva 5,000 divided into shares with nominal value of Leva 10 each and at least 70% of the capital must be paid upon foundation. Contributions to the foundation capital may be paid in cash or in kind. The statutory bodies of the private limited companies are the general meeting of shareholders, which must be held at least once a year, and the managing director or board of directors.

A single member private limited liability company is called EOOD. It is owned by a natural or a legal person. The sole shareholder exercises the powers of the general meeting and the managing director or board of directors is appointed to run the company. A private limited company must prepare a balance sheet and financial statements each year.

Here is a general explanation of what is needed to set up a private limited company in Bulgaria:

  • Produce articles of association (Memorandum of Association - in the case of a single member private limited company; the Law on Commerce stipulates the obligatory provisions of the articles.
  • Appoint a managing director (or board of directors).
  • Paid up at least 70% of its authorised capital, including at least one-third of each member's contribution.

This information together with details of the management is recorded in the commercial register and promulgated in the State Gazette.