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The difference between EM EOOD and OOD

The most popular legal forms for conducting trading activities in Bulgaria are EM EOOD and OOD.

I suggest you consider some of the features of these shapes to make the right choice for your business.

Who can register a LTD.
OOD and EM?

If you have the desire
independently carry out trading activities, can choose legal
form between the ET and the LTD are. A sole trader can be registered by any competent
a natural person with domicile in the country (article 56 of the Trade law). As well
article 58 of the same law says that one person can register
only one ET.

Check EOOD (ednolichno fellowship with the limited otgovornost) can be registered by any natural or legal person (local or foreign).

The registration of OOD (a company with
limited otgovornost) can be registered in two or more physical
or legal persons (Bulgarian citizens or foreigners).

Any person (regardless of
fizicheskoe it or legal) may participate in more than one firm.

The required capital at
the registration of the company

There are no legal requirements
the minimum amount of capital when you check EM.

The minimum
capital at registration EOOD and OOD – BGN 2.

Materialna responsibility

Its debts sole
the merchant meets all of the assets of his company and his personal family, i.e.
unlimited property liability. This is a consequence of the fact that when
registration is not a new,second legal entity, ie a sole trader, and
a natural person who established it, is one and the same person.

The owner of the company is responsible for
the debts of their firms exclusively in the size of the share capital (limited
property liability) because the owner/founder and LTD is
two completely different legal entities. The law considers the company as
an independent legal entity.

The owners of the OOD answer
the debts of his company in the amount of their share in the capital of the company (limited
pecuniary liability), because the owners/founders and OOD is
completely different legal entities. The law considers the OOD as an independent
legal entity.

Patent tax and tax on

Taxation is EM
according to the law on tax on personal income. tax Rate is 15%.

If the activities of the ET subject
under the activities described in Appendix 4 to the Law on local taxes and
the training camp, he will pay the patent tax.

LTD. and LTD. are not subject to
the patent tax. Their taxation is based on the Law on
corporate income taxation. The rate of income tax is

Tax on dividend

ET not taxed on
dividend. After paying income tax at 15% they can use
the profit for his personal needs, or keep it for business development.

For LTD. and LTD. the tax on the dividend
is 5%. Tax liabilities arise from the moment of taking decisions
owners/owner on distribution of the profit under the form of dividends.

Social security

The sole trader pays
social payments as a self-employed person. At the end of the year in the annual tax return
these social transfers are aligned on the basis of gross profit.

Owners LTD. and founders in
OOD can pay social charges on the basis of one of several

– as a self-employed person

– as a person working under contract
the management and control.

They do not justify ciplinary on
the end of the year.


Closure of ET in the Trade register
takes no more than 1 month.

Closing EOOD/OOD in the Trade
the register is only possible after the procedure to eliminate that
takes 6 months.