| LLC | Free Zone Company | JSC | LLP | Branch | Rep. Office | |
|---|---|---|---|---|---|---|
| Local Name | ООД | Фирма в Свободна Зона | АД | СОО | Предствителство | Клон на дружество |
| Company Setup Time | 20 days | 20 days | 20 days | 20 days | 20 days | 20 days |
| Bank Account Opening | 10 days | 10 days | 10 days | 10 days | 10 days | 10 days |
| Government Grants Available | Yes | Yes | Yes | Yes | No | No |
| Government Contracts Bidding | Yes | Yes | Yes | Yes | No | No |
| Limited Liability | Yes | Yes | Yes | Yes | No | No |
| Client Required to Travel | No | No | No | No | No | No |
| Inquiry | Inquiry | Inquiry | Inquiry | Inquiry | Inquiry |
Corporate Structure Explained
Bulgaria Limited Liability Company (OOD)
- An LLC requires a minimum of one shareholder. In case of having only one shareholder it will use the EOOD abbreviation. It requires a single director as well. Shareholders and directors do not need to be Bulgarian residents. For this entity, the minimum capital requirement is only € 1.
- After starting its operations, the company must submit annual financial statements.
- It is one of the best options for trading and manufacturing business operations in the country.
Bulgaria Joint Stock Company (AD/EAD)
- A joint stock company (JSC) can be formed by having a single shareholder (locally known as an EAD) or two or more shareholders (AD company). The prerequisite for forming this business entity is a minimum of € 25,000 as the initial share capital, of which 25% must be paid at the time of incorporation. It needs a board of directors with a minimum of three members and a certified Chartered Accountant.
- Bulgarian Joint Stock Companies are required to submit an audited financial statement each year.
- It is found that AD and EAD companies are better options to raise capital more easily to support business operations. The Bulgarian corporate laws do not impose any restrictions on the issuance and the transfer of shares by these entities. Bulgarian JSCs can be listed either on the Sofia Stock Exchange or on any other EU stock exchange.
Bulgaria Limited Partnership
- A limited partnership entity can be formed with a minimum of two partners. There must be at least one “general partner” fully responsible and another “limited partner” accountable only to the extent of their contribution to the partnership ;
- It is a good option for clients who already have a partner in Bulgaria and for those who want to provide professional services in Bulgaria.
Bulgaria Free Zone Company
- In the Free Zone of Bulgaria, international clients can form a wholly foreign-owned business entity. Free economic zones are mainly to host export-oriented businesses. The conditions for the formation of this entities vary from one zone to another. This includes the jobs created and minimum paid-up share capital.
- The formation of this entities in a free economic or industrial zone is the best way to start a manufacturing or export-oriented business. The manufacturing low-costs are one of the main benefits.
Bulgaria Sole Proprietorship
- A sole proprietorship can be formed by a local or a foreign entrepreneur. This entity type does not give the sole trader limited liability. This type of entity does not need capital for its incorporation.
- This is one of the best options for self-employed locals and foreigners who want to start their independent business in Bulgaria.
Bulgaria Branch Office
- According to Bulgaria’s trade law, foreign entities are allowed to have a branch office to conduct commercial activities. In such a scenario, the parent company is entitled to unlimited liability in case of loss occurs. This entity needs to recruit a legal representative who must be a resident of Bulgaria and submit annually audited financial statements.
Bulgaria Representative Office
- A Bulgarian representative office can be formed by a foreign entity. This corporate entity is free from corporate income tax. It can not carry out any direct commercial activities.