Bulgarian EOOD vs OOD: Which Company Type Should You Choose?
Quick answers
- EOOD (ЕООД): Еднолично дружество с ограничена отговорност — a limited liability company with one owner (single-member LLC)
- OOD (ООД): Дружество с ограничена отговорност — a limited liability company with two or more owners
- Liability: limited to the company’s assets in both forms
- Tax: the same 10% corporate tax and 5% dividend tax for both
- Minimum capital: €1 for both (from €2 in our packages)
- Formation price: the same for both: €1,700 in person or €2,000 remote
If you plan to open a Bulgarian company, one of the first decisions is EOOD vs OOD. Both are limited liability companies used for everyday Bulgarian business — but ownership rules differ. This guide explains when a Bulgarian EOOD is better and when an OOD makes more sense.
What does EOOD mean? The Bulgarian EOOD explained
A Bulgarian EOOD (Еднолично дружество с ограничена отговорност) is a single-owner limited liability company. One person (or one legal entity) owns 100% of the shares. It is the most popular choice for solo founders, consultants, and freelancers who want a simple Bulgaria company structure.
What does OOD mean? The Bulgarian OOD explained
An OOD (Дружество с ограничена отговорност) is a limited liability company with two or more shareholders. Use it when partners, co-founders, or investors will share ownership of the Bulgarian company.
EOOD vs OOD comparison
- Owners: EOOD = 1 · OOD = 2+
- Liability: Limited to company assets for both
- Minimum capital: Typically from €1 for both
- Management: Both can appoint one or more managers
- Tax: Same 10% corporate tax framework for both
- Best for: EOOD = solo founder · OOD = partnerships
Which should you choose for company formation in Bulgaria?
Choose Bulgarian EOOD if you:
- Are the only founder
- Want the simplest ownership structure
- Need fast decision-making without partner agreements
Choose OOD if you:
- Have co-founders or investors
- Need clear share percentages between partners
- Plan a joint venture or family business
Governance: shareholder vs manager
In both EOOD and OOD, the shareholder(s) own the company and the manager (управител) represents it toward third parties. One person can be both sole shareholder and manager in an EOOD — the usual solo-founder setup. An OOD can appoint one manager or several; partners often agree in the Articles who signs contracts and bank mandates.
Banks care who the manager and beneficial owners are. Changing the manager later is a Commercial Register filing; changing share percentages in an OOD needs a proper share transfer and updated Articles.
Share capital and naming
Capital rules are the same for EOOD and OOD. Our packages register from €2; the legal minimum can be €1 — details in minimum share capital in Bulgaria. The company name must be unique on the register and usually ends with “EOOD” or “OOD” to show the form.
If you already trade under a brand, reserve 2–3 name options before drafting. A rejected name is one of the most common reasons a filing slips a day or two — see registration timelines.
When an OOD needs a clearer shareholder deal
Two founders at 50/50 without written rules on deadlock, exit, or IP ownership create friction later. Bulgarian Articles cover the basics; many co-founder teams still want a separate shareholders’ agreement for vesting, non-compete, and buy-out mechanics. That agreement is not a substitute for register filings — ownership on the Commercial Register is what banks and counterparties check first.
Can you convert later?
Yes. Many founders start with a Bulgarian EOOD and later restructure into an OOD when a partner joins (or the reverse). Your lawyer should handle Articles of Association updates and Commercial Register filings correctly. Plan banking KYC updates at the same time — providers must refresh beneficial-owner data after a share transfer.
Does EOOD or OOD affect EU VAT and banking?
Usually no. Banks and tax authorities care more about activity, KYC, and compliance than whether your Bulgaria company is EOOD or OOD. Both forms can apply for EU VAT and open a business bank account as part of professional company formation. English speakers searching “Bulgarian LLC” are usually describing either form — see Bulgarian LLC.
How formation packages treat both forms
Price and process are the same: €1,700 in person or €2,000 remote, with address, tax setup, and bank-account coordination. You only choose EOOD vs OOD in the intake. Packages: company formation. Full foreigners’ walkthrough: register a company in Bulgaria. After you incorporate: doing business in Bulgaria.
Non-EU founders (US, UK post-Brexit, and others) use the same EOOD/OOD choice — the passport does not change the company type. See the non-EU ownership hub for residency vs company boundaries.
EOOD vs OOD FAQ
Is EOOD better than OOD for a solo founder?
Usually yes — EOOD is built for a single shareholder and keeps decision-making simple.
Do tax rates differ between EOOD and OOD?
No. Both use the same 10% corporate tax framework; see corporate tax in Bulgaria.
Can I change from EOOD to OOD later?
Yes, when a partner joins — with Articles and Commercial Register updates.
Which should US founders choose?
Same rules: one owner → EOOD; co-founders → OOD. English “LLC” context: Bulgarian LLC.
What does EOOD mean?
EOOD stands for “Еднолично дружество с ограничена отговорност” — a Bulgarian limited liability company with a single owner, comparable to a single-member LLC.
What does OOD stand for?
OOD stands for “Дружество с ограничена отговорност” — a Bulgarian limited liability company with two or more shareholders.
Not sure which Bulgarian company type fits?
We help you choose EOOD or OOD and complete Bulgarian company formation remotely or in person.