One of the ways in which a company can be established in Bulgaria is today known by the acronym OOD or Drouzhestvo Ogranichena Otgovornost. It roughly corresponds to the Italian SRL and provides for the presence of one or more legal or natural persons within the corporate group, each responsible limited to their share of the company. It is possible to establish an OOD company in Bulgaria through a writing by the representatives of the various corporate factions. To establish a company in Bulgaria in OOD form it is necessary to start from the articles of association which must necessarily include information such as the deadlines and conditions for paying the capital, the shares of the various partners, rights or their obligations, legal address and company name, administrative bodies, object of the activity and any expected duration.
If you choose to establish in Bulgaria a company according to the OOD form it is also necessary to provide for some important corporate bodies such as the directors and the shareholders' meeting which must be agreed at least once a year. Is there a minimum budget to set up a company in Bulgaria in OOD form? Yes but it's actually fictional. Yes, because to date its constitution provides for a symbolic payment of a share of at least 2 LEV or only 1 euro as share capital. What about taxes? The Bulgarian tax advantage regime also applies to OODs. What does it predict? It provides for a 10% flat tax on all legal entities. What does it mean? It means that regardless of the size of the profits of a certain OOD it will have to pay the Bulgarian tax only 30% of these profits and this, as mentioned, regardless of whether it is a multi-million dollar turnover or a few thousand euros . What happens instead in the taxation of legal entities? It is normal and desirable that the profits of an OOD company incorporated in Bulgaria are then distributed among the shareholders.
Well, if the latter have tax residence in Bulgaria (not to be confused with citizenship) they will also be able to access the advantageous tax regime with a fixed tax rate of 10%, without brackets, and regardless of the annual income received.
