The National Opera and Ballet is a national cultural institution in Bulgaria that covers opera and ballet. It is based in an imposing building in Sofia, the capital of Bulgaria. The first opera company in Bulgaria was founded in 1890 as part of the Capital Opera and Drama Company. The two sections split in 1891 to form the Salza i Smyah theatrical company and the Capital Bulgarian Opera. It was, however, disbanded the next year due to lack of government funding and financial difficulties.