Liquidation of a Limited Liability Company (OOD or EOOD) is the formal procedure for terminating a company’s existence under the Bulgarian Commercial Act.
Legal Framework
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Governed by the Bulgarian Commercial Act
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Mandatory if the company ceases activity permanently
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Ensures creditor protection and legal certainty
Key Stages of Liquidation
1. Dissolution
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Shareholders’ resolution
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Appointment of a liquidator
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Registration in the Commercial Register
2. Liquidation Phase
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Collection of receivables
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Payment of creditors
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Termination of contracts
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Sale or distribution of assets
3. Deletion
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Final balance sheet, Liquidator's reports
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Distribution of remaining assets
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Deletion from Commercial Register
Mandatory Waiting Period
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Minimum 6 months creditor protection period
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Creditors may submit claims during this time
Timeline
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Minimum duration: 6–7 months
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Typical duration: 8–9 months
Example
An inactive EOOD with:
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No employees
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VAT registration
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Zero liabilities
Despite inactivity, liquidation cannot be shortened below 6 months due to statutory creditor protection rules.
