Legal basis and establishment of corporations in Bulgaria

 The corporations in Bulgaria are actually a company with corporative features. According to Bulgarian legislation they can be several types, but they have always used as their base the characteristic of a capital company and the accumulation of primary and secondary capital. The members of corporate or a company have limited liability according the law. Commercial Act always governs the registration and operation of corporations and varieties of partnerships. According to it, there are three legal types of corporations in Bulgaria – Limited Liability Company (LLC, in Bulgarian “OOD”), Sole Limited Liability Company (SLLC, in Bulgarian “EOOD”), Joint-stock company with share capital and shareholders (JSC, in Bulgarian “AD”) or Limited partnership again with shares (LP, in Bulgarian “KD”).

Corporations in Bulgaria can be registered by Bulgarian residents or foreign investors. But to choose among all the forms of corporate companies and to do successful registration is required specific knowledge and which type is the most suitable in each current situation. Consultations during corporate establishment, its registration and preparation of all necessary documents and following representations, assistance and talks on behalf of the new company with banks and state institutions is better to be  and state ones need to be completed by lawyers. To establish this kind of company has specific features of share distribution, initial capital, types of members, etc.

For example, in both types of LLS, the property and shares of shareholders of established corporate entity are strictly recorded.

Only for SLLS, the founder could be a natural person or even state representative. In Limited partnerships the partners are numerous and they are divided into two groups of entities – with unlimited and limited liability. The most common form of corporations in Bulgaria is JSC where each partner brings capital and receives the corresponding number of shares of the capital. The shares have nominal and market value and at the end of the year the profit is distributed as dividends.

All this is a matter that bears the specific character and is strictly regulated by the law. Therefore, the setting up only local, mixed, or foreign corporation in Bulgaria requires professional intervention of the law firm and professionals. Then the whole process will be fast, secure and most importantly legal according the laws of the country.