INCORPORATION OF LIMITED LIABILITY COMPANY UNDER BULGARIAN LAW

Bulgarian LTD company is a typical limited liability company in which the members own shares. Its main features are:

  1. Limited liability – the company’s shareholders shall only be liable for any debt the company accrues according to the levels of their own investment and no more;
  2. Separate entity – the company exists beyond the life of its members;
  3. Ownership and control – typically the directors are also the main shareholders. Thus both the ownership and control of the business remain in their hands.
  4. LTD cannot offer shares to the public.

 

The minimum amount of the capital is 2 leva.

There has to be at least 1 shareholder.

 

  1. PRIOR TO INCORPORATION (NECESSARY INFORMATION)
NAME OF COMPANY XXXXXXXXXXXX
ADDRESS OF COMPANY XXXXXXXXXXXX
SHAREHOLDERS NAMES* XXXXXXXXXXXX
MANAGERS NAMES* XXXXXXXXXXXX
AMOUNT OF CAPITAL XXXXXXXXXXXX

 

*Shareholders and managers to provide scan copy of their ID (Passport);

 

III. AFTER INCORPORATION

  1. SOCIAL SECURITY TAX

In the company does not have activity the manager is not obliged to pay social security tax (which amounts to approximately 130 BGN).

In the company does have activity (transactions) the manager has to pay SS tax.

  1. VAT REGISTRATION

Where the company has income of more than 50 000 BGN it need to register before the VAT authorities, therefore hire accountant.

 

For comments, please do not hesitate to email me at: stoyanova.g@lawyer-gs.com

 

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