The different forms of Bulgarian companies
Company set-up in Bulgaria : the different forms of Bulgarian companies
Before setting up a company you have to be aware of the diffrent types of companies in Bulgaria.
A Limited Liability Company (LLC) : OOD
Equivalent to the LLC, the Bulgarian limited liability company "OOD" is the most suitable form of registering a foreign company in Bulgaria. It can have one or many partners that can be foreign legal entities. The required minimum capital is 2 leva (1 euro), divided in minimal nominative parts of 1 lev each. The capital is held by the partners and the liability is limited to the amount of the registered capital. The managing bodies are the general assembly which is held at least once per year and the president of the board of directors. Each year the company has to prepare a balance and an income statement.
A joint stock company : AD
The joint stock company has at least one shareholder whose liability is limited to the amount of the capital. Le the minimum capital amounts to 50.000 leva (25.000 euros). The shares can be nominative or to the bearer. The main organ of the company, the general assembly is held at least once per year. It elects members of the board of directors and of the supervisory board, if this structure of management has been chosen. Note that if you choose this form to develop your activity, the campany must prepare each year a balance and an income statement.
A Variable Capital Company (VCC) : DPK
A Variable Capital Company (VCC) is a business entity that may be incorporated by one or more natural or legal persons. While it does not have fixed share capital, the liability of its shareholders is limited to their respective capital contributions. The company operates through a General Meeting of Shareholders and one or more Managing Directors, who are entrusted with the management and legal representation of the company. Its share capital is divided into shares and may vary over time without the need for the capital amount to be registered with the Commercial Register. The VCC also provides a flexible framework for the admission of new investors. It therefore represents an attractive alternative to the traditional Bulgarian Limited Liability Company (LLC), notably because its incorporation does not require the prior opening of a bank account.
A General partnership "SD", a Limited Partnership "KD" or a Limited Partnership with Shares "KDA"
Without any minimum amount for the capital, the general partnership has at least two partners in the same way as the limited partnership company. The limited partnership with shares has at least three silent partners and two general partners and the capital requirements are the same as for the joint stock company.
