What is Limited Liability Company and Sole Limited Liability Company?
Limited Liability Company (LTD):
Limited Liability Company (LTD) is found by two or more partners, with capital, formed of their corporate contributions. The capital cannot be less than 2(two) levs and may represent not a cash contribution. The minimum amount of shares that may have one partner is 1 (one) lev. Each of the partners is responsible for the company’s liability to the value of his contribution. Partner in a company may be another legal company. In Bulgaria can be setting up companies by foreign physical and/or legal faces.
The manager of a company may be a person, different from the owners of capital or to be both of partner and manager. It is possible limited liability company to have two or more managers and they manage together or separately. The establishment of a limited liability company shall be effected by signing the association agreement, which describes the rights and obligations of members and the main activity that will perform. Company’s name must be unique on the territory of Bulgaria and to contain the abbreviation LTD. Upon submission of applications at the Registry Agency for declaring circumstances or acts, decisions on them shall be taken by the statement of general meeting minutes, by which each of the owners manifests written consent.
Sole Limited Liability Company:
Sole Limited Liability Company – owner of capital is one – physical or legal person. The capital cannot be less than 2 (two) levs and can represent also non-monetary contribution. Sole owner is responsible for company’s obligations to the volume of capital. In Bulgaria can be set up companies by foreign physical/ legal faces.
The manager may be different from the owner of capital. Upon submission of applications at the Bulgarian Registry Agency for declaring circumstances or acts, they are taken with a written decision of capital’s owner. Application for registration of LTD or Sole Limited Liability Company has to be submitted by the manager of the company or attorney with notarized power.
If you have questions or would like to help you open your company in Bulgaria, you can contact us for advice or for an entire service.
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