Types of Companies in Bulgaria
Types of Companies in BulgariaUpdated on Sunday 06th November 2016
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Investors in Bulgaria can choose from several available types of companies. The choice can be determined by the available capital, the number of business partners or the business field in which they want to operate.
According to the Commercial Law in Bulgaria, the following types of companies are available for incorporation, with no restrictions for foreign investors:
- the limited liability company;
- the joint stock company (public limited liability company);
- sole trader;
- joint venture;
- branch of a foreign company;
- representative office.
The most popular business form is the limited liability company because of its lower incorporation and maintenance costs and less reporting requirements compared to the joint stock. Foreign corporations in Bulgaria will often open a branch that will act as an extension of the parent company abroad.
One of our lawyers in Bulgaria can give you detailed information on all of these business types as well as personalized counseling according to your business development plans in the country.
Corporations in Bulgaria
The private limited liability company (OOC) is mostly suited for small or medium-sized businesses. The risks of the members (at least one founder, natural or legal person) are only limited to the amount of capital invested in the company. The OOC’s registered capital must be at least BGN 2.
The joint stock company is suited for larger businesses and the main difference compared to the private limited one is a much larger minimum share capital (BGN 50,000) which must be fully subscribed upon incorporation. This type of company can be listed on the Stock Exchange.
These two types of companies must be registered with the Bulgarian Commercial Register. one of our lawyers in Bulgaria can help you submit the company’s articles of association and other documents needed for the registration.
Partnerships in Bulgaria
The general partnership, the limited partnership and the partnership limited by shares are available for incorporation in Bulgaria. The difference between these three partnership forms lies mainly in the investor’s liability.
There are no requirements for a minimum share capital for this business form. The general partner is liable for the debts and obligations of the business while the silent one does not have the same responsibilities.
The sole proprietorship is the simplest business form incorporated by a single individual who is liable for all the debts and obligations of the business.
Legal entities in Bulgaria are subject to taxation requirements and to annual reporting and accounting requirements.
To find out more about how to open a company in Bulgaria please contact our law firm in Bulgaria.