There are two main types of business organizations that Bulgarian Commercial Law permits, those that have to be entered into the commercial register related to the appropriate district court, and those that don’t have to be.
The most suitable types of business are commercially registered as well as a representative office.
A Private Limited Company – OOD
This type of business means that it is a commercial company that has a limited amount of liability. There must be at least one managing director and annual meetings for shareholders must be held.
The minimum foundation capital is 1€ and can be paid to the foundation in cash or by transfer upon founding the business.
A Single Person Private Limited Liability Company in Bulgaria – EOOD
A single person limited company is very similar to a private limited company, the minimum capital is 1€, there must be a managing director and they must hold annual meetings. The main difference is that only one person owns the capital and carries the liability.
A Public Limited Liability Company – AD
An AD is also known as a joint stock company. The share capital is owned by members and they will carry the liability, which is restricted to the amount of capital they invested. The initial amount of capital depends on the business purpose, banks, insurance or investment companies. The minimum amount is BGN 10,000,00. At least 25% of the capital must be paid on the founding of the business.
A Representative Office
Here, a non-Bulgarian is permitted to be involved in business activities under the commercial laws of their own country. Their office may represent their country and will be registered with the Bulgarian Chamber of Commerce but they are not a legal person. A representative office is regulated by the Foreign Investment Act.
Holding Public Limited Liability Company
A public limited company, a public limited partnership or a private limited company that wishes to take part in another company (or their running) will be set up as a holding company. The holding company must have 25% of the stocks and shares (directly or indirectly) or 50% of the management (directly or indirectly).
A Branch Company
If a company is registered as a commercial entity in its founding country, individuals and parties may register a branch in Bulgaria, assuming they follow the commercial laws of their country. The branch is not considered a legal entity, and is required to keep financial records as an independent company would.
Joint Venture Company
This is a very common way for foreigners to invest in Bulgaria, as a foreign partner will merge with a Bulgarian. There are no restrictions on the size but it must be legally formed as one of the businesses in the Bulgarian Commercial Code.
Sole Proprietor Company in Bulgaria
One person living in Bulgaria, who can legally register himself or herself as a sole proprietor. The individual carries all of the unlimited liability.
