Informes Sectoriales OP - Icex

TOURISM AND RELATED SERVICES IN BULGARIA
owners. In summer 2005, two inspectors at the state tourism agency were apprehended
by the police with earmarked money while receiving a bribe. The inspectors
had reportedly requested the sum in order to issue a categorization certificate to a
tourism entrepreneur on the Black Sea coast.
4.3. SEARCHING FOR A PARTNER. ASPECTS TO BE CONSIDERED
WHEN NEGOTIATING A CONTRACT
The Bulgarian Commercial law allows for the following types of business organizations:
♦ unlimited (general) partnership;
♦ limited partnership;
♦ private limited company;
♦ public limited company (joint stock company);
♦ public limited partnership;
♦ sole trader;
♦ joint venture;
♦ branch;
♦ holding;
♦ co-operation;
♦ representative office.
The most appropriate types of companies for carrying out business in Bulgaria are: a
private limited company, a public limited company, a single-person private limited
company, a holding, a branch, and a representative office. All of these (with the
exception of a representative office) have to be entered into the commercial register
kept with the relevant district court.
Private Limited Company (a limited liability company) - "OOD" - is a commercial
company with share capital owned by its members whose liability is limited to the
amount of the capital subscribed. A private limited liability company may be founded
by one or more persons, including foreign natural or legal persons. The minimum
foundation capital is BGN 5000 divided into shares with nominal value of BGN 10
each and at least 70% of the capital must be paid at the company’s set up. Contributions
to the foundation capital may be paid in cash or in kind. The statutory bodies
of the private limited companies are the general meeting of shareholders, which must
be held at least once a year, and the managing director or board of directors.
A single-person private limited liability company is called "EOOD". It is owned by a
natural or a legal person, the sole shareholder exercises the powers of the general
meeting and the managing director or board of directors is appointed to run the
company. A private limited company must prepare a balance sheet and financial
statements each year.
Below is a general explanation of what is needed to set up a private limited company
in Bulgaria:
♦ produce its articles of association (Memorandum of Association - in the case of a
single-person private limited company); the Law on Commerce stipulates the
obligatory provisions of the articles;
Spanish Economic and Commercial Office of the Spanish Embassy in Sofia 48