Company incorporation and doing business in Bulgaria is carried out within the legal framework. There are two types of companies similar to LTDs – with one founder (EOOD) and two or more founders (OOD).
The company has a legal name in Cyrillic and has the right to use the Latin name, which is mentioned in the Statute. There needs to be at least one director, to represent the company; there is no requirement for the director/s to be resident in Bulgaria.
The minimum share capital is only 2 Bulgarian leva (BGN). 70% of authorized share capital must be initially paid up, the remainder to be paid up within 1 year of incorporation. We recommend setting a higher authorized capital, which you can include in the expenses and get a VAT refund.
The OOD / EOOD does not require the founders’ personal presence in the management of the Company; its liability is limited to the amount of the authorized capital. At the same time, the OOD / EOOD differs from the Joint-Stock Company by fast and easy procedures, a low minimum authorized capital, and a higher level of confidentiality. The shares of OOD owned by members of a
Limited Liability Company cannot be transferred without the approval of at least 75% of the participants. Shares of OOD / EOOD are not separable.
The number of founders is not limited. One or several Co-founders can manage and represent the Company. The number of founders can be changed after the company incorporation. All changes in the Articles of Incorporation must be registered in Court.
The company information is filed to the Bulgarian Trade Register, which is public. It displays the following information:
- the company name in Bulgarian and Latin characters (in English);
- legal form of Company – OOD, EOOD, etc.;
- the address of the Company;
- type of activity;
- the names of the Directors;
- the names of the shareholders/shareholder;
- amount of authorized capital.
When the company is formed, you get a TBR number. After this, you can open a current account in any bank. Tax office number is required if you have a non-resident Director. Notify the tax office during a week from the moment of the first invoice and choose the form of the company structure. There are monthly expenses for the Director on deductions. If the founder (or one of them) is an individual, he/she can be either a Head of the company as self-employed. If the founders are third parties (for example, a foreign legal entity), it is necessary to arrange a Contract on Management and Control (contractual employment). It is required to get a work permit.
All companies in Bulgaria are required to keep accounting records, file financial and tax reports.
There is no need to visit the country in person. The company formation can be done remotely.