Most common business entity in Bulgaria
The OOD (Limited Liability Company) is the standard choice for most small- to mid-size businesses in Bulgaria. Like a US LLC, it provides limited liability protection separated from the owners' personal assets. Min capital BGN 2 (≈ €1). VAT registration mandatory >BGN 100k turnover.
The full menu of Bulgaria business structures
| Structure | Liability | Tax | Best for |
|---|---|---|---|
| OOD (Limited Liability Company) | Limited | 10% corporate | Most operating businesses |
| Sole proprietor / self-employed | Unlimited personal | Personal income tax rates | Freelancers, one-person services |
| Partnership | Joint and several | Pass-through to partners | Professional services (law, accounting) |
| Branch of foreign company | Parent company liability | 10% on Bulgaria-source profits | Foreign companies entering Bulgaria market |
| Public limited company | Limited | Same as OOD (Limited Liability Company) but stricter | Companies preparing for listing |
Which one should you pick?
- Freelance or one-person service in Bulgaria? Self-employed structure if simple, OOD (Limited Liability Company) if you want liability protection.
- Software / e-commerce / agency? OOD (Limited Liability Company) — standard, scalable.
- Operating an existing foreign company in Bulgaria? Branch (simpler) or subsidiary OOD (Limited Liability Company) (more substance).
- Planning to raise venture capital? Confirm investors accept Bulgaria entities. Many require a US Delaware C-Corp flip — see US company formation.
- Holding company for IP or other companies? OOD (Limited Liability Company) with minimal substance requirements.
The OOD (Limited Liability Company) in one paragraph
OOD (Limited Liability Company) is Bulgaria's primary limited liability vehicle. Minimum paid-up capital: nominal. Headline corporate tax: 10%. Flat 10% on profits. 5% dividend withholding on distribution. Lowest in EU.. Banking accessibility: 6/10. Privacy: 4/10 (UBO public). Remote formation: yes. Processing time: 5 business days.
For US comparison, see Bulgaria vs USA. For non-resident formation specifics, see forming a Bulgaria company as a non-resident.