Setting up a company in Bulgaria
Types of businesses
Bulgaria - Business
Limited liability companies and Sole proprietor entities are the most popular business units in Bulgaria.
Sole proprietor (Ednolichen Tatgovetz, ET) - the company is owned and run by one person. There is no legal distinction between the owner and the business. The owner’s personal property and assets are tied to the company and vice versa. All possible liabilities can lead to seizure of personal property.
General partnership (Sabiratelno Druzhestvo, SD) - in this case two people (or legal entities) share the ownership of the company based on a previously signed contract. Partners have unlimited liability and are both held responsible for possible debts or legal actions related to the company.
Limited partnership (Komanditno druzhestvo, KD) - this company is founded when two or more people/legal entities sign up for commercial activity under a common company. One or more of the partners have unlimited liabilities for the obligations and debts of the company. The rest of the partners have limited liability according to the size of their investment.
Limited liability company (Druzhestvo s ogranichena otgovornost, OOD) - these are legal entities in which the partners’ liability is limited to the size of the capital they have invested. The company’s registered capital should not be less than 2 BGN (approx. €1).
This business unit can be initially founded by a single person/legal entity, in which case it is called sole limited liability company (EOOD).
Public limited Company (Aktzionerno druzhestvo, AD) - involves one or more persons or legal entities. They own shares of stock in the company. The liability of a joint-stock company is limited to its property.
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