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This article is also available in German: Bulgarische Unternehmensformen im Überblick: Welche Rechtsform passt zu deinem Vorhaben?
Anyone wishing to start a business in Bulgaria faces an important decision: which legal form is the right one? Bulgarian business forms offer a wide range of options, from simple freelance activities and traditional trading companies to more modern forms with variable capital. However, each Bulgarian business form has different legal, tax, and economic implications.
There are a wide variety of company forms in Bulgaria. As a German entrepreneur, the selection is quite familiar, as they are strongly based on the German system – some would even say that the Bulgarians simply copied and translated the German system. In the meantime, other forms have been added due to EU regulations. Below, we provide an overview of the various forms – it should be noted that most foreigners opt for the (E)ODD, but ultimately the decision is up to you and your situation.
Suitable for: Individuals who want to work independently without a large infrastructure – e.g. craftsmen or creative professionals
Bulgarian: БУЛСТАТ
Legal basis: BULSAT Act
Any natural person who carries out an economic activity in a non-commercial form must register with the BULSAT register. Whether you are a craftsman, yoga teacher, or graphic designer, as long as you want to work on your own account, you are required to register within one week of starting your activity.
Important: Proof of your qualifications (diploma, certificate) should be included with your registration.
Advantages:
Suitable for: Two or more persons with a common economic goal, e.g. for projects that do not require registration in the commercial register.
Bulgarian: Гражданско дружество
Legal basis: Art. 357 ff. Zakon za zadalzhenijata i dogovorite (Law on Contracts and Obligations)
The shareholders contribute money, assets, and expertise and share joint ownership and risk. Unless explicitly stated otherwise, all shares are distributed equally.
Advantages:
Please note: The shareholders are personally liable – there is no protection through limitation of liability.
Suitable for: Sole founders with permanent business operations that require a commercial structure.
Bulgarian: Едноличен търговец (ET)
Legal basis: Commercial Code
In contrast to the BULSAT trade, this is a genuine commercial status. Registration in the commercial register is mandatory, and as a sole trader, you are liable with your entire assets, both business and private.
Advantages:
Please note: Full liability with private assets
Suitable for: Founding teams with equal responsibility who want to run a commercial business together.
Bulgarian: Събирателно дружество (с-ие)
Legal basis: Commercial Code
The OHG is founded by at least two persons who are personally and jointly and severally liable. Registration in the commercial register is mandatory.
Advantages:
Please note: Full liability of each partner
Suitable for: Combination of active founders (general partners) and passive investors (limited partners).
Bulgarian: Командитно дружество (КД)
Rechtsgrundlage: Commercial Code
The KG allows investors with limited risk to be involved without granting them a say in the company as in a GmbH. The general partners bear full liability, while limited partners are only liable up to the amount of their contribution.
Advantages:
Please note: Often not suitable for institutional investors
Suitable for: Anyone who wants to work with limited liability, whether alone or in a team.
Bulgarian:
Legal basis: Commercial Code
Minimum capital: €1 (since Bulgaria adopted the euro on 1 January 2026; previously BGN 2)
The (E)OOD is by far the most popular legal form in Bulgaria, especially for small and medium-sized enterprises. Shareholders of an (E)OOD are only liable for their capital contribution. The company is established by entry in the commercial register.
Advantages:
Disadvantages:
Suitable for: Start-ups with investors who want to allocate shares flexibly
Bulgarian: Дружество с променлив капитал (ДПК)
Legal basis: Commercial Code
The DPK is a new hybrid form of partnership and corporation. What makes it particularly interesting is that the capital does not have to be entered in the commercial register, which makes it easier to implement employee participation schemes, for example.
Conditions:
Advantages:
Please note: If the limits are exceeded, the DPK must be converted into an OOD.
Suitable for: Companies with high capital requirements and many shareholders
Bulgarian: Акционерно дружество (АД)
Minimum capital: €25,000 (previously BGN 50,000)
Legal basis: Commercial Code
The AG in Bulgaria is highly formalized. It is suitable for IPOs, large capital investments, or holding structures. Shareholders are not personally liable; the risk is limited to the company's assets.
Advantages:
Disadvantages:
Choosing the right company form in Bulgaria depends largely on your individual situation. Here is some help to get you started:
| Your situation | Suitable company form |
| You are a creative freelancer | BULSAT |
| There are two or more of you and you are starting without a commercial structure | GbR |
| You are alone, want your own simple business and are willing to take risks | Sole trader |
| There are two or more of you and you want to act together but also be jointly liable | OHG |
| You are looking for an investor model with limited liability | KG |
| You want to start with limited liability | EOOD/OOD |
| Your goal is a scalable start-up | DPK |
| You need a lot of capital | AG |
If you want to delve deeper or need support with the start-up process, we recommend our book “Start in Bulgaria”. It contains step-by-step instructions, drafts, and practical tips for getting started.
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The statements this page relies on, each labelled with where it comes from. The superscript number refers to the source list below.
2 statements are still awaiting a check against their primary source.
The common legal forms for small businesses are the OOD (several members) and the EOOD (single member), both with limited liability.1, 2
An OOD or EOOD is subject to a nominal statutory minimum share capital - the legal form is deliberately low-barrier.1, 2
Registry Agency (Commercial Register)Authority
Keeps the Commercial Register. A Bulgarian company comes into existence on entry there, and annual financial statements are filed there.
Open source →State Gazette (Darzhaven vestnik)Legal basis
The official gazette. Bulgarian statutes - the Commerce Act, the Corporate Income Tax Act, the Personal Income Tax Act, the VAT Act - apply in the version published there.
Open source →You are here: Planning
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