This section provides detailed information about the basic steps for any entrepreneur who wants to start and develop business in the Republic of Bulgaria.
The main part of the Bulgarian legislation concerning the type, structure and management, and the requirements for the establishment of companies is contained in the Commercial Law. The Commercial Register Law regulates the requirements and procedure for registration in a centralized electronic register of companies operating under Bulgarian legislation and changes in the trade status of these companies.
Business in Bulgaria can be developed in the following organizational forms: a sole trader, a trading company, a holding company, a branch, and a commercial representation.
Trading company is a joinder of two or more persons to carry out commercial transactions with common tools. The Bulgarian legislation defines the following types of companies:
- Limited liability company (Ltd.)/ Single-member limited liability company (SMLtd.);
- Joint-stock company (JSC)/ Single-member joint-stock company (SMJSC);
- General partnership (GP);
- Limited partnership (LP);
- Partnership limited by shares (LPS).
All companies registered in Bulgaria, regardless of the nationality of the owner, are Bulgarian legal entities and are managed in accordance with the Bulgarian legislation.
Under Bulgarian legislation, sole proprietors, partners in general partnerships and unlimited partners in limited partnerships and partnerships limited by shares have unlimited personal liability to the company's creditors.
Partners in limited liability companies and shareholders in joint-stock companies are liable to the value of their shares in the commercial capital.
Persons that are not considered merchants are:
- Physical persons engaged in agriculture;
- Craftsmen, persons carrying out personal services or freelancers, unless their activity can be defined as an undertaking within the meaning of Art. 1, par. 3;
Persons providing hotel services through the provision of rooms in the houses they occupy.