Types of Business Structure

Information on the main forms of company and business structure, plus details on the requirement to establish a company in order to buy a property in Bulgaria...

When entering into, or setting up a business, it is important to know the categories of business in Bulgaria.

Limited Liability Company (Sole-owned Limited Liability Company)

An LLC is formed by one or more physical persons or legal entities, which are liable for the obligations of the company up to the amount of their contributions to the subscribed capital of the company. If a foreign legal entity participates in the company, its certificate of registration must be presented.

Under Bulgarian law, the minimum required capital to open a limited company is 2 levs (€1). 
Note: there are additional bank charges associated with opening (and closing) a limited company account; these vary depending on the bank but are usually 20 to 30 levs.

Joint Stock Company (Sole-owned Joint Stock Company)

A JSC is formed by one or more physical persons or legal entities. The company is liable for its obligations with its assets. If a foreign legal entity participates in the company, its certificate of registration must be presented.

The minimum required capital of the JSC company under Bulgarian law is 50,000 Bulgarian levs (approximately €25,565). At the time of establishing a limited liability company, at least 25 percent or 12,500 Bulgarian levs (about €6,391) of the subscribed capital is paid in. The remaining 75 percent of the capital must be paid within the following two years.

Sole proprietor

This is formed by one person only, who is resident in Bulgaria. The sole proprietor is a physical person and a trader, and their liability is unlimited.

Property Purchase Restrictions and Company Set Up

According to Bulgarian legislation, foreigners or legal persons not formed in accordance with the laws of Bulgaria may acquire a right to ownership of land under the terms arising from the accession of the Republic of Bulgaria to the European Union, or by virtue of an international treaty which has been ratified, promulgated, and has entered into force for the Republic of Bulgaria.

Nationals of EU member states or of member states which are a party of the European Economic Area Agreement (EEAA), and legal persons, formed in accordance with the laws of an EU member state or an EEAA state, may acquire the right of ownership over agricultural land after January 1 2014.

Information supplied by Tax Com Ltd, 5 Nikola Vaptsarov Str., Floor 5, Office 501, Varna 9005 Tel: 052 712 381 / 052 712 382, Fax: 052 712 383 e-mail Website Managing Director: Mr Delyan Sarov Copyright © 2013 Tax Com Ltd - All Rights Reserved