Bulgaria
Introduction
There are several types
of company appropriate for conducting business in Bulgaria. Regardless
of the type of business, all details must be entered in the Commercial
Register, which is maintained by the District Court of the area in which
the business is to be located. The whole registration process should be
completed within 30 days. Registration at the local tax office and the
National Social Security Institute are mandatory. Once the company has
been registered, the National Statistical Institute issues a BULSTAT
number, but this must be requested and, again, is a mandatory legal
requirement.
Bulgaria Private Limited Company (OOD)
A Private Limited
Company has share capital and the liability of shareholders is
limited to the amount of each individual’s shareholding. One or more
individuals can form this type of company. The minimum start-up
capital is BGN5,000, which must be divided into shares of BGN10 each.
A minimum of 70% of share capital must be paid up on foundation of
the company. Shareholders must meet at least annually and a Board of
Directors must run the company.
The main requirements
to set up a Private Limited Company are the availability of the
Articles of Association, the appointment of a managing director, and
confirmation of paid-up share capital.
Bulgaria Single Person Private Limited
Company (EOOD)
This
is a form of company that is owned by a single shareholder, who
appoints a Board of Directors (or Managing Director) to run the
business. The legal requirements for the foundation of a Single
Person Private Limited Company are the same as for a Private Limited
Liability Company. Proper accounts (balance sheet and financial
statement) must be prepared annually.
Bulgaria Public Limited Liability
Company (AD)
A Public Limited
Liability Company has share capital and is owned by the shareholders.
Liability of shareholders is limited to the value of the
shareholding. Two or more people can found a Public Limited
Liability Company. There is a requirement to have minimum capital of
BGN50,000, or BGN100,000 if by public issue. A minimum of 25% of
share capital must be paid up upon inception. As with other company
forms, shareholders must meet at least annually and proper accounts
and financial statements must be maintained.
Bulgaria Holding Company
A Holding Company
is permitted in Bulgaria, provided that it has some role in the
management or investment of a Public or Private Limited
Liability Company. Legally, at least 25% of the capital of a
Holding Company must be invested in its subsidiaries. A Holding
Company must control a minimum of 25% of the shares of a company.
Bulgaria Joint Venture
This is a popular form of business in Bulgaria, where a
Bulgarian company is joined by a foreign company in a Joint
Venture. The business form of the Joint Venture must comply with
any of the business forms stipulated in the Commercial Code, but
the size of any Joint Venture is without limit.
Bulgaria Branches
Any legal entity
registered in another country can register a Branch of the business
in Bulgaria. This is provided that the necessary legal registration
in the country of domicile has been properly completed. A Branch is
not regarded as a legal entity, although it must maintain accounts.
