What is the difference between EOOD and OOD Bulgaria?

When talking about company formation in Bulgaria, the most common kinds of companies that attract entrepreneurs are the EOOD and OOD. Both these companies have limited liability, meaning the shareholders are not personally liable for company debt and financial responsibilities.

We will further go into detail about what each type of company is, what is the difference between an EOOD and an OOD Bulgaria, and some important information on company registration.

It is worth mentioning that engaging the services of an accounting firm, like Accountancy Bulgaria, is a wise move in order to delegate the bookkeeping responsibilities, and the yearly tax reports to the experts, and focus on growing your business.

Accountancy Bulgaria, with headquarters in Sofia, counts with experts that have years of experience and deep knowledge of the Bulgaria financial system, rules, and regulations and can even advise on company formation. Opt for a free consultation and find out how they can best serve your company.

What is an EOOD?

An EOOD is a sole-owned limited liability company. 

As a sole-owned company, only one proprietor is necessary. The person opening this kind of company can be a Bulgarian or a foreign citizen.

Bulgaria has no restrictions in place regarding the citizenship or residency of directors of a company registered in Bulgaria, making this country an attractive destination for companies looking to relocate to maximize their earnings and reduce costs.

However, members of EOODs or OODs Bulgaria that are going to be settled in the country to run said company must have a residency, as well as a registered address in Bulgaria, and company owners will also need to consider opening a corporate bank account in a local bank.

Limited responsibility means that the proprietor doesn’t have to compromise his own assets and he is not liable in the case of company debt.

READ ALSO: Bulgaria Eood: what is this corporate form and why is it so convenient?

What is an OOD?

Similarly to the EOOD, an OOD is a limited liability company. However in this case more than one member is possible. 

In the case of an OOD, there are 2 or more shareholders. 

This is the main difference between an EOOD and an OOD Bulgaria. 

Company registration Bulgaria

Company formation Bulgaria is actually a very straightforward process that may only take a few days to complete if all documents are drawn correctly. 

The attractive business environment in Bulgaria and the advantageous tax scheme are some of the main reasons for companies to relocate or open branches in this country. 

Requirements to open an OOD Bulgaria

To open an OOD in Bulgaria the following documents are necessary:

• a copy of an ID,
• 3 options for company names,
• The name of the company’s manager,
• The name of the company’s capital sole proprietor,
• The amount of the foundation capital,
• A brief scope of the company’s activities.

Open an OOD Bulgaria: step by step

The steps to open a OOD in Bulgaria are the following:

• Prepare the incorporation documents,
• Open a bank account in Bulgaria,
• Present the paperwork at the Bulgaria Company Register.

It usually takes about 2 business days to complete the process. 

Keep in mind that foreign citizens may also need to work on obtaining a visa or residency for Bulgaria if they are planning to stay over 183 days in the country (in a period of one year) to run the business.

READ ALSO: All you need to know about Bulgaria Ltd

Conclusion

An OOD Bulgaria is one of the most common company types for company formation Bulgaria.

The process of creating and registering a company in Bulgaria is simple and fast.

Counting on the accounting services of a reputable accounting firm like Accountancy Bulgaria is a definite must for any business looking into registering a company in Bulgaria. Accountancy Bulgaria has over 30 years of experience that can be an asset for an OOD Bulgaria.