Introduction to Company types in Bulgaria

Although Bulgaria offers a rich variety of legal structure, we specialize in forming 3 types of companies in Bulgaria - Limited Liability Company (used most often), Joint Stock Company and Foreign Company Branch.

Please take 5 minutes to read the following introduction so you can make sure you choose the company structure that is right for you. If you need any assistance, please give us a call at +359 (0) 877 042 770.

Company registration for Non-Residents

Bulgaria does not distinguish between locals citizens and foreigners for the purpose of formation of a company. This means that there are no legal or regulatory restrictions for foreigners whether they are natural persons or companies. In addition the procedure for the company formation and registration is the same for foreign citizens and local individuals and companies.

Company registration process

The process starts with preparation of the Articles of Incorporation and other applicable documents, with signature specimens and owners document notarized and apostilled (depending on country of citizenship).

After completion of all documents then the company is registered in the BulgarianTrade Register - a process which takes 3 business days. After successful registration the owners obtain a Unified Identification Code, which is unique code for each company and is used to identify the company.

Each company has a file in the Commercial Register and all actions with it such as change of the sum of capital or owner can be traced through this file (visible now also online). No further registrations for establishment are required under the applicable legislation.

Limited Liability Company

The majority of new companies registered by locals and foreigners in Bulgaria are Limited Liability Companies (LLC). In Bulgarian the LLC is abreviated as EOOD (one owner LLC) and OOD (more than 1 owner LLC). This is the standard business structure for any company which has been formed with the intention of generating profit for the owners.

Similarly to other jurisdictions this structure is popular because it offers restricted financial liability for the owners while allowing them to share the profits among themselves. The restricted financial liability means that the shareholders are only responsible for company debts up to the value of the shares they hold in the company. So their personal assets will be protected, should the company encounter any financial difficulties.

We offer two packages in regards to LLCs. The first package is intended for 1 individual who will hold 100% of the shares of the company The second package is intended for 2 or more shareholders, who intend to setup the company and share the profits and liabilities.

For Non-Residents we offer remote LLC registration and it is not necessary for the investor to be physically present in Bulgaria. With this package we also offer a Bulgarian address service with international mail forwarding. This makes it easy for our clients from abroad to manage their company from outside of Bulgaria.

Joint Stock Company (JSC)

The Joint Stock Company (JSC) is a more complex structure than the LLC with additional legal requirements and higher minimum capital requirements, currently 50,000 BGN (approx. 26,600 EUR).

The company can be founded by 1 or more persons (legal or natural) and the minimum nominal value of one share must be 1 BGN. When owned by one person the company is abbreviated as "EAD" and when owned by more than 1 person "AD".

A JSC may have one- or two-tier managing system. Companies electing a 1-tier system are required to appoint a board of directors. When a 2-tier management system is used, then a supervisory body is appointed along with a managing board.

When setting up your Joint Stock Company you will get expert advice from our senior lawyers. Contact us for more information.

Foreign Company Branch

An alternative to setting up a Limited Liability Company in Bulgaria is using the Foreign Company branch legal structure, which allows a foreign company to operate in Bulgaria through a branch office. This local branch office is part of the foreign company (not a separate legal entity) which means that the foreign company is liable for any debt owed by the branch.

The branch office in Bulgaria is required to be registered in the Bulgarian Trade Registry where it will be issued a Unified Identification Code (UIC). Companies are required to submit a certificate of good standing of the company, the company representative and their powers and a resolution of the foreign company to establish a branch in Bulgaria.