Company registration
Introduction
Registering a company in Bulgaria is a vital step for anyone planning to conduct business in the country. Bulgarian legislation offers various legal forms for conducting commercial activities, tailored to different needs and objectives. This guide outlines the main types of companies, the registration procedures, and the associated costs.
Types of Companies in Bulgaria
Sole Proprietor (ET)
- Description: A sole proprietor is an individual conducting business under their own name and risk.
- Features: The proprietor’s liability extends to their entire personal assets.
- Suitable for: Small businesses with limited financial risk.
Limited Liability Company (OOD) and Single-Member LLC (EOOD)
- Description: An LLC (OOD) consists of two or more partners with a minimum capital of BGN 2, whereas a single-member LLC (EOOD) has a single owner.
- Features: Partners’ liability is limited to the amount of their registered capital.
- Suitable for: Small and medium-sized enterprises.
Joint-Stock Company (AD)
- Description: A joint-stock company has a minimum capital of BGN 50,000, divided into shares.
- Features: Suitable for large enterprises planning to raise capital through public share offerings.
- Suitable for: Large-scale businesses and public companies.
General Partnership (SD)
- Description: Composed of two or more individuals who share unlimited liability for the company’s obligations.
- Features: High level of trust among partners.
- Suitable for: Small-scale partnerships.
Limited Partnership (KD)
- Description: Includes two types of partners—general partners (with unlimited liability) and limited partners (with liability up to their contributions).
- Suitable for: Businesses requiring different levels of participation and liability.
Registration Procedure
Step 1: Document Preparation
- Articles of Incorporation or Statutes: Defines the company’s structure and governance.
- Minutes of the Founding Meeting: Details the decisions to establish the company and appoint its governing bodies.
- Capital Documents: Proof of capital contribution (for OOD and AD).
- Application Form: Completed and submitted to the Bulgarian Commercial Register.
Step 2: Document Submission
- Online Registration: Through the Commercial Register’s online portal.
- In-Person Submission: At the offices of the Bulgarian Registry Agency.
Step 3: Entry into the Commercial Register
- Review Period: Applications are reviewed within three working days.
- EIK Code Issuance: A unique identification code required to commence operations.
Applicable Fees
Company Type | Online Fee (BGN) | In-Person Fee (BGN) |
---|---|---|
Sole Proprietor (ET) | 15 | 30 |
Limited Liability Company (OOD/EOOD) | 55 | 150 |
Joint-Stock Company (AD) | 180 | 360 |
Additional Costs:
- Bank Fees: For opening a capital deposit account.
- Notary Fees: For signature authentication and powers of attorney, if necessary.
- Professional Services: Legal and accounting assistance fees.
Advantages and Disadvantages of Company Types
Type | Advantages | Disadvantages |
---|---|---|
Sole Proprietor (ET) | Easy registration, low costs | Unlimited personal liability |
OOD/EOOD | Limited liability, operational flexibility | Requires management and reporting |
Joint-Stock Company (AD) | Suitable for raising capital | Complex structure, higher requirements |
General Partnership (SD) | Simple structure, shared responsibility | Unlimited liability of partners |
Limited Partnership (KD) | Flexible participation levels | Complex partner relationships |
Practical Tips
- Choose the Right Legal Form: Evaluate your business scale, financial risks, and long-term goals.
- Consult Professionals: Legal and accounting advisors can simplify the process and ensure compliance.
- Meet Legal Obligations: Regularly update company documents and fulfill tax obligations for sustained success.
Conclusion
Company registration in Bulgaria requires careful planning and adherence to legislative requirements. Selecting the appropriate legal form depends on the business scale, financial capacity, and strategic objectives. Proper preparation and professional assistance ensure a smooth registration process and set the foundation for a successful business.
For further assistance, you can contact our legal experts through the provided phone numbers or the online inquiry form.