Considering a Bulgarian AD or EAD? We’re happy to inform you about this Bulgarian business form and entity, Our advisors can also advise you about the legal, tax and practical aspects of having an AD or EAD company in Bulgaria.
What is an AD or EAD
The AD or EAD is comparable with the UK plc (Public Limited Company), German AG and the French SA. The difference between the AD and EAD is that the EAD is a single member company. A bit further in this text we’ll get back to this topic.
The Bulgarian AD company is a business entity with limited liability
Characteristics of the Bulgarian AD company
- The minimum capital is 50000 leva (about 26000 euro)
- At least one fourth of the capital needs to be paid up before registration of the company
- The remaining part of the capital needs to be paid up within two years
- The minimum amount of shareholders is one
- Both corporate entities and physical persons can be shareholders of an AD company
- The minimum amount of directors (managers) is three
- Board members can only be physical persons
Every year the annual accounts have to be published at the Bulgarian trade register. The annual accounts for an AD/EAD company have more requirements than -for example- the Bulgarian OOD / EOOD (limited company). More documents will have to be filed for an AD/EAD company and the accounts have to be audited.
When is an AD company interesting?
The Bulgarian AD company is interesting when:
- bearer shares are required
- a company needs to be able to trade the shares of the AD freely, for example to get registered on a stock exchange or an over-the-counter trading facility.
In certain cases other company types or business forms can be a better choice, like:
When it’s not desirable to have physical persons as a director or when a company registration is required without forming a permanent establishment in Bulgaria the Bulgarian KD (Limited Partnership) is usually a better option.
In most other caes the Bulgarian OOD (Limited company) is usually the most proper solution. This company type is chosen most by our clients. It’s an untrue statement that the OOD is only for small companies, there are many large corporations in Bulgaria doing business through an OOD / EOOD.
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 ‘R’, 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 veven 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
We’re very happy to give you more information about this subject or another subject on this website. Please contact us with the button below.Contact us