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Set up OOD in Bulgaria

Updated on Friday 18th May 2018

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set_up_OOD_in_bulgaria.jpgSetting up a limited liability company in Bulgaria is a rather straightforward procedure. First thing to do is to choose the type of entity you want. A popular form in Bulgaria is the one called limited liability company (LLC) known as drujestvo s ogranichena otgovornost (OOD) in the Bulgarian language. Our team of company formation specialists in Bulgaria is at your disposal with assistance for opening a business, in compliance with the authorities in charge.
 

The steps of company formation of an LLC in Bulgaria

 

Once you decide to set up an LLC in Bulgaria, firstly you have to choose a name that has to be unique and you need to check if it is available and issue the proven document.  The managing body of the company needs an act of association as a result of the constituent meeting. The number of the stakeholders is at least one. The company body of the  Bulgarian OOD is made of a general meeting of stakeholders and a (minimum one) manager. The LLC must have a director to represent the company in front of authorities, but it is not mandatory for him to be a Bulgarian resident. For an efficient communication, the OOD company should have a registered office in Bulgaria and a bank account.
 

What is the minimum share capital for OOD in Bulgaria?

 
It is good to know that the authorized capital required for an LLC in Bulgaria is BGN 2 or EUR 1. The entrepreneur needs a bank document to state the deposit, attached to the file. 
 

What is the Bulstat number for OOD in Bulgaria?

 
The Bulstat number represents the company's tax identification number that shows the company is registered as a taxpayer in Bulgaria. The National Social Security Institute in Bulgaria provides the Bulstat number for which the company must apply along with the papers for the Commercial Registry. 

 

What are the necessary documents for LLC registration in Bulgaria?

 

The shareholder of a limited liability company in Bulgaria needs to put together the papers for the Registry Agency like:
 
  • the application form, the name certificate, and the signature specimen with the notary consent of the person who represents the company;
  • the owners of the limited liability company must provide copies of identity documents;
  • in case of legal entities setting up the company, legalized copies of the corporate documents are required; 
  • a set of copies of the owners’ identification documents (ID and passports).
 
The Registry Agency accepts paper and electronic applications. A court decision will acknowledge the main scope of the company and will include the articles of incorporation. The company receives a registration number and a taxation number. In the process of company registration in Bulgaria, the State Gazette publishes the Register entry, but it doesn’t mean that the set up of the company is complete. The tax registration is the next step in the company formation.
 

What are the taxes for LLCs in Bulgaria?

 

One should know that a Bulgarian limited liability company is subject to the Corporate Income Tax Law and the rate is 10%. The 20% VAT is not mandatory for companies with an income under BGN 50,000. Another thing that is not compulsory for an LLC is the independent audit of annual accounts. The LLC set up in Bulgaria is required to pay social security contributions. This can be done by filing an application at the Social Security Administration.
 

 The main attributes of LLCs in Bulgaria

 
Foreign entrepreneurs who choose to open an LLC in Bulgaria may benefit from a reputable business environment and a permissive investment legislation in most sectors of interest in this country. Among the attributes of OOD in Bulgaria, we mention the following:
 
  • such companies can deal and sign contracts in agreement with the applicable legislation;
  • an LLC in Bulgaria can issue invoices to local clients and can deal with trading activities;
  • each LLC in Bulgaria can solicit virtual office services instead of setting up a traditional office;
  • there is no need for frequent statutory audits, but the annual tax return must be submitted;
  • an LLC in Bulgaria can be established by at least one shareholder.

 

Virtual office services for LLC in Bulgaria

 
 
Investors from abroad who want to control the business in Bulgaria from the home country can benefit from complete virtual offices in Sofia or in other important cities in the country. Mail collection and forwarding, dedicated fax services, a local phone number for potential clients and collaborators, bank statements collection and a private local number are provided to foreign entrepreneurs as part of the virtual office packages. We remind that virtual office services in Bulgaria are cheap compared to traditional offices for LLC establishments. Our advisors can offer in-depth information in this matter.
 
 
Our company formation specialists in Bulgaria can help you with more information about how you can set up an LLC in Bulgaria, so please feel free to contact us at any time.

 

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