Minimum share capital of a limited liability company ( OOD )
Since 19 October 2009, the minimum share capital of a limited liability company ( OOD ) has decreased from 5000 BGN ( 2 500 EUR ) to 2 BGN (1 EUR). This change aims to encourage young entrepreneurs to become business leader and promote the creation of companies in Bulgaria.
Bulgaria is one of the European countries that requires the smallest contribution in social capital to create a limited liability company, like France (1 EUR) or England ( £ 1 ).
Although the minimum share capital is only 2 BGN, LPG Bulgaria recommends that customers take into account the necessary capital to start any activity so that to determine the amount of capital when setting up a company in Bulgaria, especially when the activity is regulated (transport, activities subject to authorization , or those who require bank guarantees).
However, if the capital is set to 2 BGN or an amount that is not large enough, it will be very difficult to have recourse to bank financing. The shareholders may fund the company through contributions in the current bank accounts though.
In Bulgaria, the loan granted by the partners to the company can be remunerated at an interest rate close to the market rate, i.e. 3-4% in 2023. If the partner is a natural person, tax is withheld. If applicable, tax agreements against double taxation may allow the partner to benefit, depending on his country of residence, from a tax credit equal to the tax levied in Bulgaria.
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