One of the most common types of small businesses in the Bulgaria is a single-owner business called “single owner limited liability company.” Good planning and accuracy are the most important part for successful Accountancy of Single Owner Limited Liability Ltd.
The single owner makes all the decisions related to the company’s activity and the person may also be the manager of the company themselves or may decide to appoint a different person as manager.
It is important to note that the owner of the capital is the one who has the obligation to deposit it into a specially opened bank account – escrow account, and the manager is the one who undertakes the future actions for entering the company in the Commercial Register, opening of current accounts, concluding contracts with future counterparties.
As a limited liability company, the single-member EOOD has all the advantages—and disadvantages—of other limited companies in Bulgaria.
There are several options of the type of business entity to open in Bulgaria and this decision will affect the way you do business, how you can operate your business and your liability:
While both the single owner company and the sole proprietorship are solo business entities, there are some advantages to having a sole proprietor business become a single owner EOOD.
A sole proprietor r (Bul.: Едноличен Търговец, short: ЕТ) is a special legal body of the Bulgarian commercial law. Contrary to other commercial entities, the sole proprietor is a natural person with commercial characteristic attributed by law.
By the registration as sole proprietor into the commercial register, no new legal entity is created but the legal personality of the natural person gets extended.
This way, the sole proprietor is responsible for the performance of the obligations deriving from commercial activities and the obligations deriving from his activities as private person. Hereby, he is liable for his obligations with all his assets.
Advantages of a sole proprietor in Bulgaria:
If you’re looking professional and English speaking accounting firm in Bulgaria then look no further. From simple bookkeeping to audits and consulting, ViaAvtive offers the best quality and guaranteed results.