In today's economic environment, the registration of a limited liability company (Ltd.) is becoming the preferred choice for entrepreneurs who wish to develop their own business with lower financial risk. In this type of company, the partners are only liable up to the amount of their capital contribution, and not with their personal assets. The essence of a limited liability company Ltd. is a capital company in which two or more partners can participate, each holding a specific share of the capital. EOOD is a form of Ltd., but established by a single person. The minimum required capital for registration is 2 leva, which facilitates the start of business activity and makes it accessible to a wide range of people.
Basic steps for establishing an Ltd.
• 1. Choosing a unique company name – a check is conducted in the Commercial Register.
• 2. Preparation of founding documents.
• 3. Appointment of a manager and preparation of consent with a specimen of the signature.
• 4. Opening a capital raising account and depositing share capital.
• 5. Preparation of mandatory declarations according to the Commercial Law and ZTR.
• 6. Submitting an application for registration in the Commercial Register – online or at a counter.
• 7. Possibility for voluntary VAT registration.
• 8. Appointment of an accountant and opening a current bank account.
Timeline and CostsThe entire process takes between 2 and 5 working days. The state fee for registration is 110 BGN when submitted in person or 55 BGN for online applications. In addition, notarization fees, bank fees, and lawyer's fees are added.
Advantages of Ltd. The main advantage of this type of company is the limited liability of the partners. Additionally, the registration process is relatively easy and accessible, with low capital requirements. The flexible management structure and the ability to expand by attracting new partners make the Ltd. format suitable for both small and growing businesses.
It is always preferable, before taking this step, to consult a lawyer who will guide you through the correct steps to achieve a final result that meets your needs and requirements.
