According to the Commercial Act in Bulgaria, there are five main types of commercial companies: general partnership (SD), limited partnership (KD), limited liability company (OOD/EOOD), joint-stock company (AD), and partnership limited by shares (KDA).
- General Partnership (SD): Established by two or more partners who bear unlimited and joint liability with their personal assets for the company’s obligations. This form requires high trust among partners and is mainly used for smaller businesses.
- Limited Partnership (KD): Includes two types of partners – general partners (komplementari), who bear unlimited liability, and limited partners (komanditisti), whose risks are limited to the amount of their contribution. This form is used less frequently, mostly in investment projects.
- Limited Liability Company (OOD or EOOD): The most widespread form in Bulgaria, as it combines a low capital threshold, protection of personal assets, and a flexible management structure. The minimum capital is 2 BGN (about 1 EUR).
- Joint-Stock Company (AD): Suitable for larger companies and requires a minimum capital of 50,000 BGN (about 25,500 EUR). The capital is divided into shares, which facilitates attracting investors.
- Partnership Limited by Shares (KDA): A mixed form between a limited partnership and a joint-stock company. It is used extremely rarely and has a more complex structure.
