Those looking into registering a company in Bulgaria should consider an EOOD, or limited liability company, as there are many benefits to this corporation type in Bulgaria.
An EOOD is a perfect option for new companies in Bulgaria, meeting certain criteria, especially for foreigners, who after obtaining their residency can register a company in some simple steps and then they can purchase real estate, or even register a vehicle as a company asset.
Because an EOOD is a limited liability company, the shareholder’s responsibility doesn’t extend to their personal assets.
Among the many interesting advantages that attract companies to Bulgaria, there is a flat rate of 10% in corporate taxes. In order to make sure you best take advantage of what Bulgaria has to offer, we recommend engaging the services of a trustworthy accounting company, like Accountancy Bulgaria.
Corporations in Bulgaria: what is an EOOD?
In Bulgaria, there are different types of corporations. Among the most common ones, and the ones that usually are more interesting to foreign investors, are the EOOD and OOD.
The most common type of corporation in Bulgaria, especially for smaller businesses, is the EOOD. We will talk about what is it, how it works and what benefits it can provide, as well as the requirements for company registration of an EOOD.
An EOOD is a sole-owned limited liability company. A similar corporate type is the OOD, however, in the case of an EOOD, only one stakeholder with limited responsibility is necessary. This shareholder is not liable for the company’s debt, meaning he doesn’t have to compromise his own personal assets.
Registering a company in Bulgaria is an easy process that your lawyer and notary will help with. The requirements are the same for national and foreign investors, however, if foreign company shareholders are interested in spending longer periods of time in Bulgaria in order to run the business, they need to consider obtaining a residency permit.
What’s the difference between an EOOD and an OOD?
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.
This difference translates into a few differences in the incorporation of the company, like the minimum capital necessary to start the business. An EOOD can be transformed into an OOD, or vice versa.
Who can open an EOOD?
The main question we get asked is if foreigners can register a company in Bulgaria. And the answer is yes.
The requirements to open a company in Bulgaria are the same for locals or foreigners.
Bulgaria has no restrictions regarding the citizenship or residency of directors of a company registered in Bulgaria, making this country an attractive destination for companies looking to relocate as a way to maximize their earnings and reduce costs.
Something to consider is that every company must have a registered address in Bulgaria, and business owners will also need to consider opening a corporate bank account in a local bank.
Open an EOOD in Bulgaria: step by step
Bulgaria has simplified the process of company formation, a very intentional move to make the country attractive to foreign investors.
Many big companies have taken steps to form branches or sister corporations in Bulgaria to benefit from the attractive business environment Bulgaria has at the moment and the advantageous tax scheme.
Counting on the accounting services of a reputable accounting firm like Accountancy Bulgaria is a definite must for any business looking into registering an EOOD in Bulgaria. Accountancy Bulgaria has over 30 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 company’s needs.
Benefits of registering an EOOD in Bulgaria
Through this article, we can see a few interesting benefits of registering an EOOD in Bulgaria.
Benefits range from the corporate tax in Bulgaria, which is a flat rate of 10% on corporate income after deductions, to the low capital necessary at the time of incorporation, and the options for foreign investors. Not to mention the lower VAT, lower social security contributions, more affordable workforce, and overall lower costs of life compared to other countries.