Registration of ET, OOD, AD

In order to start a business in Bulgaria you have to register a legal entity , i.e. a company. The most popular and widespread legal entities in Bulgaria are listed below. Of course, there are two other forms – SD (general partnership) and KD (limited partnership). If you are interested in the SD or the KD, you can send an inquiry and we will reply as soon as possible what are the advantages and disadvantages of each.

ЕТ (Sole proprietor)

Advantages
√ It can be established by a Bulgarian citizen over 18.
√ No initial capital needed for registration
√ Registration procedure is short and simplified

Disadvantages
⊗ It may be established by a foreigner only with permanent residency in Bulgaria or Bulgarian citizenship
⊗ Registration is only at the place of residence in Bulgaria.
⊗ The owner is liable to the company’s creditors with his personal property

Time for preparation of the documents and registration of the sole proprietor: 1 working day

ООD / ЕООD (Limited liability company)
Advantages
√ It can be established by a Bulgarian or foreign citizen
√ It can be established by a Bulgarian or foreign legal entity
√ minimum capital required – 2 BGN
√ Shareholders in the LTD are liable for the LTD obligations up to the amount of registered capital. Their liability does not extend to their personal property.
√ Registration procedure is short and simplified
Disadvantages
⊗ A General Meeting is required for most of the decisions in the LTD
⊗ The manager has broad powers and the control exercised by the General Meeting is week.
⊗ Weak protection of the LTD creditors’ interests if the capital is 2 BGN only.

Time for preparation of the documents and registration of ООD / ЕООD (Limited liability company): 2 working days

АD/ ЕАD (joint stock company)
Advantages
√ It can be established by one or more individuals or legal entities
√ the creditors of AD are more protected because of the large capital
√ Well-built and financially stable organization, higher trust of partners
√ The activities of the Executive Director are controlled by the Board of Directors

Disadvantages
⊗ АD must issue shares
⊗ Minimum capital 50 000 BGN
⊗ A more complex structure, requiring several managing bodies
⊗ Registration procedure requires more time and preparation

Time for preparation of the documents and registration of АD/ ЕАD (joint stock company): 5 working days