EOOD vs OOD — Which to Choose?

Who EOOD is for

EOOD (Еднолично дружество с ограничена отговорност / single-member LLC) is the most popular form for starting a business in Bulgaria. It fits when:

• You are the sole owner
• You want fast decisions without partner approval
• You plan a small or medium business — from freelancing to an online shop
• You want limited liability — personal assets are protected

In an EOOD all decisions are taken by the sole owner via a written resolution. There is no general meeting, no voting and no partner conflicts.

Who OOD is for

OOD (Дружество с ограничена отговорност / multi-member LLC) is the right choice when two or more people want to build a business together:

• You have a business partner and share investment and profit
• You want clearly regulated relationships between partners
• You plan a larger operation with distributed roles

In an OOD decisions are taken at the General Meeting of partners. The partnership agreement sets the rules — quorum, majority, veto rights, and so on.

Key differences

Management

• EOOD: The sole owner decides everything. They can also be the manager.
• OOD: Decisions are taken at the General Meeting by majority. The manager may be a partner or a third party.

Registration documents

• EOOD: Articles of Association + sole-owner resolution
• OOD: Partnership Agreement + minutes of the founding meeting

Share transfers

• EOOD: The owner can freely transfer shares. Admitting a second partner automatically turns the EOOD into an OOD.
• OOD: Transferring shares to third parties usually requires General Meeting consent with a 3/4 capital majority.

Registration costs

Quick decision table

When NOT to choose OOD

• You have no real partner — do not register an OOD “just in case” with a fictional partner
• You disagree on basics — early conflicts usually get worse
• You only want two managers as a solo owner — use EOOD with one manager, or take legal advice for atypical structures

Related: Firmify vs lawyer vs DIY · EOOD vs freelance