Many entrepreneurs register a Bulgarian company because of the many tax and business benefits that Bulgaria has to offer.
The most used company types in Bulgaria are:
The Bulgarian OOD/EOOD
The Bulgarian OOD is a limited liability company and is the most preferred and used business form in Bulgaria. This type of company can be compared with the UK Limited company, German GmbH and the French sarl. Click here for more information about the Bulgarian OOD company.
The Bulgarian AD/EAD
The Bulgarian AD is a ]Joint Stock Company and can be compared with the UK plc, German AG and the French SA. This type of company is used by bigger companies with many shareholders, when bearer shares are required and by companies that wish to freely trade the shares (fe on a stock exchange or by over-the-counter trading). Click here for more information about the Bulgarian AD company.
The Bulgarian KD
The Bulgarian KD can be compared with the UK LP, German KG and the French SCS. This type of company is interesting for companies that have to be integrated into an existing holding structure, companies wishing to do business in Bulgaria, but don’t require a permanent establishment or when pass-through taxation on profits is desired. Click here for more information about the Bulgarian KD company.
Instead of forming a Bulgarian company one can also register a branch office in Bulgaria. A branch office isn’t a separate entity, but like an ‘extension’ of the parent company.
Entrepreneurs who insist on being able to use the corporate law system of the home country of the parent company, but still be able to use all the benefits that Bulgaria has to offer, could form a branch office in Bulgaria. Click here for more information about registering a branch office in Bulgaria.
The Bulgarian companies act
Bulgaria has a very modern and flexible companies act which makes Bulgarian companies even more suitable for international business. An example of this is the fact that Bulgarian companies have both a Bulgarian and an international name. The Bulgarian name will be in Bulgarian and written in Cyrillic, but the international name can be in any language and may end on any applicable suffix, like Ltd, GmbH, SL or sarl.
Other important benefits of the Bulgarian companies law:
- A Bulgarian company can be registered anywhere in Bulgaria and the administrative address may differ from the registered office
- The registered office doesn’t have to be the place of business
- A Bulgarian company can have several places of business
Single member companies
The Bulgarian companies act is very favourable for single member companies. Single member companies are exempted from annual, general or extraordinary meetings for making decisions. Instead the single member may just issue a written resolution. Single member companies can be recognised by the fact that their suffix will always start with an ‘E’, for example OOD will become EOOD and AD will become EAD.
The single member company provisions in the Bulgarian companies act are very interesting and time-saving and are even more convenient when the company is being used in a holding/subsidiary structure.
Forming a Bulgarian company doesn’t take much time, usually the company will be registered within a week after all documents have been filed.
You can come to Bulgaria for forming a Bulgarian company, but the formation process can also be done on distance.
Steps to be taken to register a Bulgarian company
Forming a Bulgarian company is done in a few steps:
- Drawing up the corporate documents (minutes, memorandum/bylaws, signature card and declarations)
- Every director or manager will have to sign the signature card in the presence of a notary public (either in his own country or in Bulgaria)
- Opening of an escrow account for the company’s capital and applying for a declaration of paying-up the capital
- Translation and legalisation of the signature cards (if not signed in front of a Bulgarian notary public)
- Filing all documents at the Bulgarian trade register
After about a week the company will be registered and the company will be able to close the escrow account, apply for a business bank account and and apply for a VAT number.
Our way of working
BulgariaCompanyFormations.com will take every part of the registration process for doing business in Bulgaria out of your hands. All our documents are bilingual (English and Bulgarian), when desired other languages are also a possibility.
Alle documenten die wij opstellen zijn tweetalig (Engels en Bulgaars), desgewenst zijn ook mogelijk.
BulgariaCompanyFormations.com also offers supplemental services:
- Accounting services
- Legal advice
- Tax advice
- Fiduciary services
- Provision of Bulgarian bank accounts
- Applying for a VAT number
- Translation services
- Supplying a Bulgarian registered office
- Consulting services for financing a Bulgarian enterprise through European funds, grants and subsidies
- Consulting services for finding the right location and real estate for Bulgarian companies
- Services to find Bulgarian business partners and starting a joint-venture
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