Limited liability company
Probably the most common way of doing business all over the world. Also know as Ltd. in the UK and LLC in the USA. In Bulgaria this kind of entity is called OOD for a company with two or more partners and EOOD for a single shareholder firm. The minimum capital for a limited company in Bulgaria is 2 BGN which is about 1 EUR.
Joint stock company
A joint stock company is the business entity in which the capital consists of stocks. Usually it’s the preferred kind of company when it comes to businesses with bigger capital. The minimum capital for opening a JSC in Bulgaria is 50 000 BGN which is 25 600 EUR.
Advantages of having a company in Bulgaria
It is really easy and affordable to have a company in Bulgaria. You don’t need to be a Bulgarian resident to be able to have a company in the country. Having a company makes it easier to receive a Bulgarian residence if you need one. Taxes in Bulgaria are among the lowest in the EU which makes it one of the most preferable countries to have a business in:
Corporate profit tax – 10%
VAT rate – 20%
VAT on supplies within the EU – 0%
Income tax rate for individuals – 10%
Tax on dividend from company’s profit – 5%
More about the limited company
The word „limited“ means that the owners are not responsible for the eventual debts of the business. The company itself is responsible with its own properties so the partners don’t carry any risk related to their own property.