Features and use of EOOD/OOD in Bulgaria
It is necessary to register and maintain a company in Bulgaria in accordance with the applicable legislation. As mentioned above, in Bulgaria, there are two types of companies equivalent to the LLC (LTD): with one founder (EOOD) and two or more founders (OOD).

According to the local legislation, the name of the company must be written in Cyrillic. The entrepreneur has the right to use the name in Latin as an additional one. The company can be founded by a foreign citizen, and one or more founders who are not residents of Bulgaria can act as a director.
It should be emphasized that before registering a company, the founder must open a savings account and deposit the authorized capital in leva. At the time of submitting documents to the Company Register, a founder must deposit at least 70% of the authorized capital, and the remaining amount can be contributed within a year.
The minimum amount of authorized capital when registering OOD/EOOD is 2 leva, however, it is recommended to deposit a larger amount to include initial expenses and claim for VAT refund.

Management of OOD/EOOD does not require personal participation of the founders. Their liability is limited to the amount of the authorized capital. To register OOD/EOOD, one may apply a simplified registration procedure with a minimum amount of authorized capital. Shares of the members in the OOD/EOOD cannot be transferred to anyone without the consent of at least 75% of the other company members. OOD/EOOD shares are undividable and no certificates are issued.

The total number of founders of a company is not limited by law. One or more founders, as well as an authorized person specially appointed by the founder, can manage the company and protect its interests.
It should be noted that the number of founders can be changed. The company may exclude founders and include new ones. However, it is necessary to register all changes in court.
All information about the company is entered into the Bulgarian Trade Register, which is publicly available. This register reflects the following information about the company:
  • 1
    Company name in Bulgarian and Latin
  • 2
    The legal form of the company (OOD, EOOD, etc.)
  • 3
    Type of activity
  • 4
    Names of company shareholders
  • 5
    Names of company executives
  • 6
    Amount of authorized capital
After registering a company and receiving a unique TBR number (ID), the founder can open a current account with any bank. If the director of the company is not a citizen of Bulgaria, they need to obtain a business number from the country's tax office. The tax office must be notified of the start of the company's operations within one week from the date of the first invoice, issued for payment for goods or services. In addition, it is necessary to choose the form of company management - under a contract or as a self-managing entity.

If one of the founders is an individual, they have the right to manage the company as a self-managing entity. If the founders are third parties (for example, a foreign legal entity), they are required to enter into a contractual labor relationship. If the founders are not citizens of the European Union, they need to obtain a work permit.

An undoubted advantage of starting a business in Bulgaria is the fact that the founders are not required to personally visit the country to register a company. Investors have the right to carry out all the paperwork remotely.

Benefits from opening a company in Bulgaria

  • 1
    Possibility to obtain a residence permit by investing more than 250,000 leva in the authorized capital of the company
  • 2
    Quick company registration and account opening
  • 3
    Possibility to open a company remotely
  • 4
    Zero VAT for transactions with goods and services in the Euro region
  • 5
    Lowest tax rates in the European Union

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