Businesses looking into setting up a company in Bulgaria have a few interesting options. Among the limited liability companies (LTD) we find the EOOD.
An EOOD is a perfect option for those looking into starting their business in Bulgaria, especially foreigners, who after obtaining their residency can register a LTD company in Bulgaria in some simple steps and therefore be able to purchase real estate, or even register a vehicle as a company asset.
As a limited liability company, the shareholder’s responsibility doesn’t extend to their personal assets, however many professionals or small businesses can benefit from a flat rate of 10% in corporate taxes.
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Corporations in Bulgaria
Like in many other countries around the world, in Bulgaria there are many kinds of corporations. The most common ones, and those that will be of more interest to foreigners planning to dip into company registration in Bulgaria, are the EOOD and OOD.
The most common cases we see in the Bulgarian company register, especially for smaller businesses is the EOOD. We will discuss what it is, and what makes it different from other types of companies in Bulgaria, as well as the requirements for company formation in Bulgaria.
What is a Bulgarian EOOD? Difference between an EOOD and an OOD
EOOD stands for a sole-owned limited liability company, and the same term is used in English. A similar corporate type is the OOD, however there are some differences between them.
Both types of corporations are rather similar, however, they are diverse in the number of equity stakeholders required for each company.
An EOOD is a limited liability commercial corporation with a solely limited stakeholder. An OOD also has a limited responsibility, but it requires two or more limited stakeholders.
It translates into a few differences in the incorporation of the company. An EOOD can be eventually transformed into an EOOD, or vice versa.
Starting a business in Bulgaria as a foreigner is easy and requires a very straightforward process.
Who can form a Bulgaria Eood?
The main question we hear is if foreigners can open a company in Bulgaria. And the answer is yes.
Anyone can open a company in Bulgaria, without restrictions to foreigners.
Additionally, Bulgaria has no restrictions regarding the citizenship or residency of directors of a company registered in Bulgaria, which has made this country a perfect option for companies looking to maximise their profits by benefiting from the tax scheme in this European country.
Something to consider is that every Private Limited Company must have a registered address in Bulgaria, and business owners will also need to consider opening a corporate bank account in a Bulgarian bank.
Steps to set up an EOOD Bulgarian company
Foreigners and residents of Bulgaria are under the same requirements to open and register an EOOD company in Bulgaria. However, foreign investors will need to look into the requirements to obtain Bulgarian residency if they are planning to spend long periods of time in the country in order to run their business.
Bulgaria has simplified the process of company formation with the intention of becoming an appealing destination for companies looking to benefit from the tax haven that Bulgaria has become.
Many companies have taken steps into forming branches or sister corporations in Bulgaria in order to benefit from the attractive business environment and appealing tax laws, as well as investment opportunities and options to maximise the company’s profits. A challenge some may experience is the language barrier.
Counting on the accounting services of a reputable company like Accountancy Bulgaria is a must for a business hoping to take advantage of Bulgarian regulations. Accountancy Bulgaria has over 35 years of experience and can deal with the day-to-day bookkeeping needs, yearly reports, and taxes, as well as the more complex ins and outs of your corporation’s specific needs. Definitely, an excellent option when it comes to an accountancy company in Bulgaria.
Company registration in Bulgaria is something that must be done with a lawyer or notary. The process takes only a few days. And thanks to specialised agencies and multilingual experts, like Accountancy Bulgaria, this process is quick and simple.
Benefits of an EOOD in Bulgaria
There are many interesting reasons and benefits to opening a company in Bulgaria.
While a simple and straightforward tax system is the main attraction, businesses may also consider the appealing rules that include a low share capital, low tax rates, low VAT, low social security costs, and an educated and experienced labour force at a lower cost compared to other European countries.