Company Types in Bulgaria: EOOD, OOD, EAD, AD - Which to Choose

Before taking the plunge, one needs to understand exactly what they're choosing. In Bulgaria, there are four main company types foreign entrepreneurs encounter, each with different obligations, costs, and levels of bureaucracy. Below, you'll see what each practically entails and where Greeks usually end up. For the full picture, see our guide on company formation in Bulgaria.

If choosing a company type is part of a broader plan for company formation abroad, also consider alternative structures before deciding.

ЕООД - Single-member Limited Liability Company

The most common choice for a single owner. Minimum capital of 2 leva, one member, one or more managers. Liability is limited to the capital. Requires bookkeeping, annual financial statements, and publication in the registry. Owner details are public.

ООД - Multi-member LLC

Same framework as ЕООД, but with two or more members. Requires a company agreement, minutes of general meetings, and notarized procedures for each transfer of shares. Every change means a new translation, certification, and filing.

ЕАД and АД - Joint Stock Companies

Require 50,000 leva capital, a board of directors or supervisory body, regular meetings, and in several cases, a certified auditor. They only make sense for large-scale operations or specific licensed activities. For the average entrepreneur, they are excessive in terms of cost and obligations.

Sole Proprietorship and Branch Office

There is also the sole proprietorship, as well as the branch office of a foreign company. Both options increase exposure: the sole proprietorship does not protect personal assets, while a branch office brings the activity close to the parent company, with all the tax implications that entails in the country of residence.

What all forms have in common

This is the point usually not mentioned. Regardless of the form you choose, the same applies:

• 10% corporate tax, with a serious possibility of increase in the coming years
• 5% dividend tax when you withdraw profits, meaning a 14.5% effective burden
• Accounting has become expensive, especially for foreign owners
• Mandatory official translations and notarizations for every change
• Public disclosure of ownership details in the Commercial Register
• High bureaucracy in banks, the registry, and tax authorities

In other words, the choice between ЕООД and ООД changes details, not the basic cost and hassle.

Comparison with the two most popular alternatives

Wyoming LLC

An LLC combines limited liability with extremely simple administration: an Operating Agreement, an annual report, and that's it. There's no state income tax, financial statements are not published, owner details are not public, and you don't need a notary or translator for every change. See what LLC formation includes and our formation packages with prices.

Company in Dubai

For those seeking a real presence and zero taxation, the UAE option offers 0% corporate tax for turnover up to approximately 707,000 euros annually, along with a visa, Emirates ID, and a local bank account. See company formation in Dubai.

Conclusion

If you insist on Bulgaria, the ЕООД is the logical choice for a single owner, and the ООД for corporate structures. But the essential question isn't which Bulgarian form, it's whether Bulgaria is worthwhile at all today. With a 14.5% effective tax, expensive accounting, translations, and bureaucracy at every step, most of our clients end up in Wyoming or Dubai.

Read also: Is Bulgaria still worth it?, Advantages of a Wyoming LLC, and Advantages of a company in Dubai.

Frequently Asked Questions

What is the difference between ЕООД and ООД?

An ЕООД has one member, an ООД has two or more. The obligations and taxation are the same.

Do I need 50,000 leva in capital?

Only for ЕАД and АД. For ЕООД and ООД, the minimum capital is 2 leva.

Are my details public?

Yes, in the Bulgarian Commercial Register. In Wyoming, owner details are not published.