accounting

Minimum share capital of a limited liability company ( OOD )

Minimum share capital of a limited liability company ( OOD )

 
Since 19 October 2009, the minimum share capital of a limited liability company ( OOD ) has decreased from 5000 BGN ( 2 500 EUR ) to 2 BGN (1 EUR). This change aims to encourage young entrepreneurs to become business leader and promote the creation of companies in Bulgaria.
 
Bulgaria is one of the European countries that requires the smallest contribution in social capital to create a limited liability company, like France (1 EUR) or England ( £ 1 ).
 
Although the minimum share capital is only 2 BGN,  LPG Bulgaria recommends that customers take into account the necessary capital to start any activity so that to determine the amount of capital when setting up a company in Bulgaria, especially when the activity is regulated (transport, activities subject to authorization , or those who require bank guarantees).
 
However, if the capital is set to 2 BGN or an amount that is not large enough, it will be very difficult to have recourse to bank financing. The shareholders may fund the company through contributions in the current  bank accounts though.
 
In Bulgaria, the partner  current bank account can be paid up to 20% of the current interest rates (15% for 2010) 3% in 2010. If the partner is a natural person not resident in Bulgaria, there will be a tax deducted at the source. Double taxation tax treaties allow the partner to benefit, depending on their country of residence, from a tax credit amounting to the tax levied in Bulgaria.