A Limited Liability Company (OOD or EOOD) is one of the most preferred legal forms for doing business in Bulgaria. Its primary advantage is limited liability—shareholders are not personally liable for the company’s debts beyond the amount of their capital contribution. This makes it particularly suitable for entrepreneurs looking to protect their personal assets in the event of the company’s financial difficulties.
The minimum required capital is only 2 BGN (approx. 1 EUR), making it accessible for anyone to start a business. The management structure is highly flexible—the company can be managed by one or more directors. OOD and EOOD structures are suitable for both small family businesses and larger companies with multiple partners. Furthermore, these entities enjoy a better reputation with banks, partners, and clients compared to Sole Traders (ET), as they represent a more stable and reliable form of organization.
