Kinds of firms


The working Bulgarian legislation provides the following kinds of the commercial enterprises:

1) A collective society ( CD)
2) Command society (KD)
3) A society with limited liability
4) Joint-stock company (AD)
5) Command society with actions (KDA)
6) The private businessman (ET)

        All of them, behind exception ET, are legal persons. Their founders the Bulgarian or foreign physical and legal persons . All enterprises should be entered in the trading register under the decision of district court on the location of firm (for Sofia - in the Sofia city court). The decision of court should be promulgated in the official state newspaper "State bulletin ". Regarding the taxation all enterprises are equal. Registration in tax service, pension fund is obligatory also.

    Collective society (CD) CD is the typical representative of personal societies which, as a rule, are created well knowing each other co-originator. In personal societies of participants of firm unites personal work. Their number should be not less than two and they carry the solidary and unlimited responsibility under obligations of firm, switching and personal property (without property - habitation, labour compensation, etc.). Mutual relations between founders are defined by the constituent contract. They are obliged to participate in activity CD personally. Minimal authorized firms fund by the law it is not determined, therefore this form suitable to persons, having small means and when activity of firm does not assume acceptance of the big obligations. Everyone co-originator has the right to operate a society. But without the consent of the others co-originator it cannot participate in other societies or conclude the transactions concerning to a subject of activity of the given society.

    Command a society (KD) As against CD in this society one or the several co-originator bear the solidary and unlimited responsibility under obligations of a society, and the others - only at a rate of the stipulated payment in the authorized capital. Operates a society and represents it beyond all bounds responsible co-originator. Is limited responsible co-originator have no right on operation of business and on stay of the decisions accepted beyond all bounds responsible co-originator. In the rest KD corresponds CD. Society with limited liability (OOD) The most suitable form of activity for the fine and average capital. It combines elements personal and funds societies, but is ranked as the last in connection with that the minimal size of the authorized capital - 5000 lv. is limited. OOD have received a wide circulation in Bulgaria, due to advantages which they give. As against CD in OOD it is not required personal participation co-originator in activity of a society, and they risk only the sums brought in the authorized capital. During too time, OOD differs from joint-stock company (other form funds societies) the simplified procedure of registration, smaller publicity of results of activity and the low size of the minimal authorized capital. By the moment of submission of documents on registration the authorized capital of firm should be brought in size not less than 70 %, the rest - within one year. The share of one co-originator in the authorized capital cannot be less than 10 leva. The number of founders is not limited. To operate a society and represent it can one or the several co-originator or specially the assignee who is not being the founder. The number of founders can be changed, and after registration of firm, i.e. founders, can be deduced from firm or are entered new. All changes in constituent documents should be registered in court. Founder OOD can be and one physical or legal person. In this case it will be called " Private Open Company " (Individually company with it is limited rights - EOOD). Founder EOOD can personally operate and represent the enterprise or appoint other person. In the rest EOOD corresponds OOD.

        Joint-stock company (AD) AD - typical funds a society in which participants are united only with the capital. The authorized capital is divided on equal parts. The shareholder participates in a society is unique through the actions, it is not obliged to make any personal efforts and can always sell actions. The minimal capital for the AD should be 50000 leva. (on a face-value of actions), in case of formation of a society through a subscription - 100000 leva. Operate AD general meeting and administrative advice (board of directors).

        Command society with actions(KDA) KDA it is formed by the contract between is limited responsible and beyond all bounds responsible founders. Is limited responsible co-originator should be not less than three and he gives out actions for the sum of their payments of the authorized capital. Founders of a society are beyond all bounds responsible co-originator, they convoke the constituent assembly. In general, assembly of a voice only have the right is limited responsible co-originator, the board of directors too will consist only of them. In the rest KDA corresponds to joint-stock company.

     The private businessman(ET) ET - the physical person. It is established by the Bulgarian citizen or the foreigner having the status of a constant residence in Bulgaria. One person can register as ET only one firm. The minimal authorized capital of firm is not determined by the law. The founder bears the responsibility under obligations of firm and the personal property. ET participates and the same property, as in civil, and a commercial revolution. ET their business of activity and when activity of firm does not assume acceptance of the big obligations is recommended to persons in the beginning. The name of firm necessarily should contain a name and a surname of the founder without reduction.