Bulgaria

Republic of Bulgaria is a state in South-Eastern Europe, in the eastern part of the Balkan Peninsula. Occupies 22% of its area. In the north it borders with the Republic of Romania, in the east with the Black Sea, in the south with the Republic of Turkey and the Republic of Greece, and in the west with the Republic of Macedonia and the Republic of Serbia.

Bulgaria is of interest to foreign investors, first of all, due to low purchase prices and high development potential. Consequently, the expected return on investment is quite high. Since 2004 Bulgaria has been a member of NATO, and since 2007 - a member of the EU. The country is currently building new infrastructure with the help of the European Union.

A company in Bulgaria is required when buying land or real estate with land, since the sale of land to foreigners is prohibited in Bulgaria. Political stability, low crime rates, developed air and land communications, as well as a wonderful climate and the largest tourism market in the region make Bulgaria an attractive jurisdiction for buying real estate and participating in investment projects. In addition, with significant investments, you can immediately get permanent residence in Bulgaria, bypassing temporary one-year residence permits. Bulgarian citizenship gives the right to live and work in any EU country without restrictions.

Types of companies in Bulgaria

• Gathering Society (Collective Friendship - SD)
• Commandite society (Commandite friendship - CD)
• Limited Liability Company (Limited Liability Company - OOD)
• Sole proprietorship limited liability company (EOOD)
• Joint Stock Company (Joint Stock Company - AD)
• Limited partnership with shares (Limited partnership with shares - KDA)
• Self-employed (Single commercial - ET)

All of them, with the exception of ET, are legal entities. Their founders can be Bulgarian or foreign individuals and legal entities. All businesses must be entered in the commercial register by decision of the district court at the location of the company.

According to the Constitution of Bulgaria, foreign persons and foreign legal entities cannot obtain direct rights to own land.

The above restrictions, however, do not apply to Bulgarian companies with foreign participation, regardless of the percentage of this participation. Thus, foreign persons can obtain full rights to own land, including ownership of agricultural land, by creating or joining a company registered under the laws of Bulgaria.
The most popular form of participation in business in Bulgaria is OOD.

OOD structure

The minimum number of shareholders is two. They can be represented by both individuals and legal entities.

The minimum capital for an OOD is 2 BGN. To register a company, the authorized capital must be deposited into a special bank account.

A limited liability company does not have a board of directors. Instead, a manager or managers authorized to manage the affairs of the company is appointed.

Limited liability companies are prohibited from engaging in banking or insurance business.

The company is registered in the commercial register of the relevant district court by an appointed executive who has representative authority.

The main advantages of registering a company in Bulgaria in the form of an OOD:

• The minimum possible size of the authorized capital, only 70% of which must be paid before starting the registration of a company in Bulgaria;
• An audit is mandatory only if there are special requirements related to the type of activity of the company (banking, insurance, etc.);
• No need to form and maintain reserve funds, both at the time of registration of a company in Bulgaria, and subsequently;
• Limited liability of the founders.