Sole
proprietor (Ednolichen Tatgovetz, ET) - the company is owned and run by one
person. There is no legal distinction between the owner and the business. The
owner’s personal property and assets are tied to the company and vice versa.
All possible liabilities can lead to seizure of personal property.
General
partnership (Sabiratelno Druzhestvo, SD) - in this case two people (or legal
entities) share the ownership of the company based on a previously signed
contract. Partners have unlimited liability and are both held responsible for
possible debts or legal actions related to the company.
Limited
partnership (Komanditno druzhestvo, KD) - this company is founded when two or
more people/legal entities sign up for commercial activity under a common company.
One or more of the partners have unlimited liabilities for the obligations and
debts of the company. The rest of the partners have limited liability according
to the size of their investment.
Limited
liability company (Druzhestvo s ogranichena otgovornost, OOD) - these are legal
entities in which the partners’ liability is limited to the size of the capital
they have invested. The company’s registered capital should not be less than 2
BGN (approx. €1).
This
business unit can be initially founded by a single person/legal entity, in
which case it is called sole limited liability company (EOOD).
Public
limited Company (Aktzionerno druzhestvo, AD) - involves one or more persons or
legal entities. They own shares of stock in the company. The liability of a
joint-stock company is limited to its property.
