Establishment a company in Bulgaria – different types and specification

Establishment a company in Bulgaria is determined by a number of specific features. A company may have a different organisation, activities, belonging and may be registered in the country in various forms. According to its size, a company in the country, whether foreign or not, can be micro, small, medium or large. More common are companies whose activity brings them a profit and they can be national or international (there are two or more partners form different countries). Overall the different types of companies in the country according to their organisation and their methods of control are most important, which is reflected in their form of registration.

Establishment a company in Bulgaria – types and specification

In our country you can register companies with sole control or corporation. The first are managed and controlled entirely by one person who takes full responsibility for the actions of the company. Such companies are registered in Bulgaria as “ET” (Sole Proprietorship). The next type is sole limited liability company (or in Bulgarian is “ЕООД) is a special form of one-man company. Commercial law regulates the procedure of registration and the management of a company, whether it is a corporation or a sole proprietorship. In “ET” the business owner takes full responsibility with the corporate assets and with the personal properties! Capital for the setting up a similar company is minimal, and accounting and taxes are more simplified.

Limited liability company (LLC or in Bulgarian “ООД”) is a corporation with limited responsibility, and its specific type is Sole limited liability company.

Whether the company is a single entity or not each of the partners are responsible accordingly to the extent of its contribution in the capital of the company. The number of the partners could be up to 20 for this kind of company and it is managed by a General meeting of Shareholders and a Manager. Initial capital is minimal and accounting and tax declaration concern the distribution of the profit among shareholders and their personal incomes.

Limited and General partnerships are special forms of setting up a company in Bulgaria.

They have unlimited liability and are initiate by a contract between several parties for the establishment of a common business. Its management is very difficult to be determent and such companies have heterogeneous taxation.
The most popular type of corporate business in Bulgaria is “AD”. The joint stock company is registered with initial capital, number of partners, management organisation, type of activity, etc. It is a subject of corporate tax, employees and managers are subject of income taxes. The profit is distributed and accounting is common.