Considering a Bulgarian OOD or EOOD? 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 OOD or EOOD company in Bulgaria.
What is an OOD or EOOD?
The OOD and EOOD are is the most used company type in Bulgaria. The OOD can be compared with the English Limited company (private company limited by shares), German GmbH (Gesellschaft mit bekrankter Haftung) and the French sarl (Société à responsabilité limitée).
Limited liability and legal person
The Bulgarian OOD company is a legal person and has limited liability for the members of the company.
Characteristics of the OOD company
- The minimum share capital is only 2 leva (about 1 euro)
- The minimum amount of shareholders is one
- Shareholders can be both physical persons as corporate entities
- The minimum amount of directors (managers) is one
- Only physical persons can be director
Every year some obligations will have to be fulfilled, including filing the annual accounts. The annual accounts of an OOD company are usually quite simple and exempted from auditing.
When is an OOD company interesting?
The Bulgarian OOD company is interesting for most companies and is the most chosen type of company for doing business in Bulgaria among our clients. The EOOD/OOD is also very suitable to be used for joint-ventures and consortiums.
In certain cases other company types or business forms can be a better choice, like:
Companies with higher capital requirements will usually prefer the Bulgarian AD (plc / joint stock company), because they’ll be able to trade the shares more freely, for example by registering at the stock exchange or trade the shares by over the counter trading. Also only only Bulgarian AD can offer bearer shares.
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.
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.
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