Different types of companies I can establish in Bulgaria?

In Bulgaria, you can establish several types of legal entities depending on your business needs and objectives. The most common types of companies include:

1. Single Person Limited Liability Company (Еднолично дружество с ограничена отговорност):
   • A company with one shareholder who is liable for the company's obligations up to the amount of their contributions.
   • Minimum share capital: 1 BGN.
   • Suitable for small businesses or sole entrepreneurs.
2. Limited Liability Company (Дружество с ограничена отговорност):
   • Requires at least two shareholders.
   • Liability is limited to the amount of their contributions.
   • Minimum share capital: 2 BGN.
   • Suitable for small to medium-sized enterprises (SMEs).
3. Joint-Stock Company (Акционерно дружество):
   • Can be public (АД) or private (ЕАД).
   • Minimum share capital: 50,000 BGN for public JSC; 1 BGN for private JSC.
   • Shares are freely transferable (public JSC).
   • Suitable for larger businesses seeking public financing.
4. General Partnership (Събирателно дружество):
   • Partners share unlimited liability for the company's obligations.
   • Suitable for small partnerships or professional firms.
5. Limited Partnership (Командитно дружество):
   • Consists of at least one general partner (unlimited liability) and one limited partner (limited liability).
   • Limited partners are liable only up to the amount of their contributions.
   • Suitable for businesses with passive investors.
6. Branch (Филиал):
   • An extension of a foreign company operating in Bulgaria.
   • The foreign parent company is fully liable for the branch’s obligations.
7. Representative Office (Представителство):
   • Limited to non-profit activities such as market research and promotion.
   • Cannot engage in commercial activities or generate revenue.

Key Considerations:

• Share Capital: Depending on the type of company, minimum share capital requirements vary significantly.
• Liability: Liability can be limited or unlimited depending on the type of company chosen.
• Management: Different types of companies may have varying requirements regarding governance and management structure.
• Taxation: Companies in Bulgaria are subject to corporate income tax, with rates applicable to profits generated.

When choosing the type of company to establish in Bulgaria, it's essential to consider your business objectives, liability preferences, management structure, and regulatory requirements. Consulting with a legal advisor or accountant familiar with Bulgarian company law can help navigate the complexities and ensure compliance with local regulations.

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