EOOD or OOD — which legal form to choose?
Choosing between an EOOD and an OOD is one of the first decisions you need to make when starting a business in Bulgaria. Both forms offer limited liability, but they differ in structure, management and suitable scenarios.
What Is an EOOD?
A sole-owner limited liability company (EOOD) is a company with a single owner. The owner can also serve as the manager, which simplifies decision-making.
Advantages of an EOOD
- Full control — you make all decisions yourself
- Simpler administration — no founding meetings required
- Fast decision-making — no need for partner approval
- Limited liability — you only risk the contributed capital
What Is an OOD?
A limited liability company (OOD) has two or more partners. Management is shared and decisions are made jointly.
Advantages of an OOD
- Shared risk — capital and liability are distributed
- More resources — more people = more ideas and capital
- Division of responsibilities — each partner can be in charge of a different area
- Limited liability — same as with an EOOD
Comparison Table
| Criterion | EOOD | OOD |
|---|---|---|
| Number of owners | 1 | 2+ |
| Founding document | Articles of Incorporation | Company Agreement |
| Management | Decision of the sole owner | General Meeting |
| Minimum capital | 1 EUR | 1 EUR |
| Tax rate | 10% | 10% |
| Suitable for | Solo entrepreneurs | Partnerships and teams |
When to Choose an EOOD?
- You are starting on your own and do not plan to have partners
- You want maximum control over the business
- You prefer a simple management structure
When to Choose an OOD?
- You are starting with a partner or co-founders
- You want to share the financial risk
- The business requires different competencies contributed by different people
Practical Tip
If you are not sure, start with an EOOD. Later you can bring in a partner and convert the EOOD into an OOD through a change of circumstances in the Commercial Register. The reverse (from OOD to EOOD) is also possible when one party buys out the other's shares.
With Firmify you can register both types of companies in 15 minutes — automatic document generation, no lawyer needed.
What About a JSC?
A joint-stock company (JSC) is suitable for more complex corporate structures — large investments, public companies or specific regulatory requirements. For a JSC we generally recommend working with a specialised legal partner, since the legal framework is considerably more complex than for an EOOD or OOD.
Read our city-specific company registration guides: Sofia, Plovdiv, Varna, Burgas.
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