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Types of companies


Bulgarian legislation in force specifies the following types of commercial enterprises:

1) General Partnership
2) Limited partnership
3) Limited liability company
4) Joint-stock company
5) Association limited by shares
6) Sole proprietorship


        All of the above, excluding the sole proprietorship are legal entities. They can be established by both domestic and foreign physical and legal persons. All enterprises аre to be entered in the commercial register, with a resolution from the District Court on the location of company’s main office (for Sofia - in the Sofia city court). The decision of court is to be promulgated in the official state newspaper "State bulletin ". Regarding taxation, there is no distinction between the enterprises. Registration with insurance authorities is mandatory as well.

Partnership: Partnership is the most common form of personal companies. Normally, the partners in these companies know each-other very well. The number of partners should be not less than two and they carry the joint and unlimited responsibility under obligations of the company. Mutual relations between founders are determined by the constituent contract. They are obligated to participate in the activity of the company in person. There is no minimum capital for setting up such a company. This legal form is suitable for ones who have limited

Limited partnership: One or several co-founder bear joint and unlimited responsibility for the liabilities of the company and the others – only to the amount of their share in the capital. The management is done by the first group of co-founders. The second group doesn’t take part in the management and decision making process.

Limited liability company: The limited liability company is the most suitable form for the average capital. The minimum capital required by law to set up such a company is 5000 BGN. Due to the advantages it has, this form has received wide popularity in Bulgaria. The procedure of registration is simple, the size of minimum capital required – relatively small and there is no publicity of the activity. By the moment of submission of documents on registration, the establishment capital of the company should be brought in size not less than 70 %. The rest of it - within one year. The share of one co-founder in the company capital cannot be less than 10 leva. The number of founders is not limited. Management and representation are done by one or several co-founders, or a manager, who may not be a partner. The number of co-founders can be changed at any time after the company is registered. All changes in the constituent documents should be registered in court. Founders of the limited liability company could be physical or legal persons as well as just one person. Then the company is EOOD (abbreviation in Bulgarian). The founder of EOOD can personally manage and represent the enterprise or appoint another person.

Joint-stock company: The shareholders are united only by the capital. Capital is divided into equal parts. The shareholders participate in the company to the number of their shares and are not obliged to take part in management personally. The minimum capital for the joint –stock company should be 50 000BGN. (on a face-value of shares), and in case of formation of the company through a subscription – 100 000BGN. The operating and managing body of the joint-stock company is the board of directors.

Association limited by shares: Part of the founders have limited liability, part – unlimited. The minimum number of the founders with limited liability should be at least three. Company is established with a contract and shares are emitted for the capital of partners with unlimited liability. Other legally established procedures are like in the joint – stock company.

Sole proprietorship (ET): Physical person. Can be established by a Bulgarian citizen or a foreigner having the status of constant residence in Bulgaria. One person can register only one sole proprietorship. There is no limit for the minimum capital of such company. Founder is liable to the whole amount of personal and company assets. Recommended form if the scope of activity and capital are limited.. The name of the company includes the name and surname of the founder.