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Registration of a branch

The dynamics of modern business relations can easy switch to another country of doing business in different settlements by registration of a branch.

If you have such a need, you are generally faced with three options for doing business:

A) register individual “subsidiaries” of trading companies and through them to carry out your business.

With this option new companies are emerging and they have separate business enterprises.

The common between them is in the owner who owns them, but in the case of third parties they are completely independent subjects;

B) to disclose retail outlets (warehouses, shops, etc.) in the different settlements, without creating new companies and operating in them.

In this situation, no new legal entity emerges – a company, the trader himself engages in legal relationships with third parties.

B) register a branch through which to separate the performance of part of your activity in a settlement other than that in which your company has its registered office.

The branch is a legal-organizational form for carrying out a business activity in which a trader (firm), through a relative separation of part of its activity, carries it out in a settlement other than that in which its seat is located.

In the internal relations, the branch is dependent on the trader and this dependence is manifested in different directions, for example in:

A) the lack of an independent firm, and the branch company includes the trader’s firm and the branch add-on;

(B) the branch is part of the trader’s business (and, if transferred, the branch is transferred).

In disputes arising out of a direct relationship with a branch, claims are brought against the firm (as may be done at the headquarters of the branch);

B) the termination of the trader also leads to the termination of the branch (the same applies when the bankruptcy is declared);

D) the branch does not compile a stand-alone balance – the branch leads commercial books as a sole trader without compiling a separate balance sheet.

Registration of a branch

Branch registration is the result of the following procedure, which includes:

1. decision on the establishment of a branch;

2. election of a branch manager;

3. Entry in the Commercial Register (TP).

The decision to register a branch is taken by the competent corporate body under the rules of the relevant commercial company:

The decision should contain a clear intention to establish a branch and its headquarters, address of management, subject of activity, manner of management.

Setting up a Bulgarian branch by a foreign company is one of the legal forms for establishment of a business presence in Bulgaria.

Usually the branch office is considered to be an alternative to being a (sole) shareholder of a Bulgarian company.

The Bulgarian branch office is not a separate legal entity but a part of the foreign company.Registration of a branch

As a result, share capital of the branch is not required and the foreign company is liable for the liabilities incurred by the branch.

Legal Representative of the Bulgarian Branch

Though the Bulgarian branch office is not a separate legal entity and appointment of a director is not required, the authorization of a legal representative of the branch is mandatory.

The representative powers of the legal representative are determined by a power of attorney granted to him by the foreign company.

Registration with the Bulgarian Commercial Register

Under Bulgarian legislation branches are required to be registered with the Bulgarian Commercial Register. The necessary documents to register a branch in Bulgaria include:

official certificate of good standing of the foreign company;

official incumbency certificate containing the particulars of the persons authorized to represent the foreign company and their representative powers (if not contained in the certificate of good standing);

resolution of the foreign company to establish a branch in Bulgaria (the persons competent to adopt such a resolution are determined by the national corporate law of the foreign company);

constituent act/articles of association of the foreign company;

notarized power of attorney granted to the legal representative of the Bulgarian branch;

notarized written consent and specimen signature of the legal representative of the Bulgarian branch;

declaration under art.13, para. 4 of the Bulgarian Commercial Register Act.

Accounting

Under the Bulgarian Commerce Act following the successful branch office registration, the branch is required to maintain its own bookkeeping as well as to prepare a balance sheet.

Taxation

Under the Bulgarian tax legislation the profit generated by a foreign company’s branch established in Bulgaria is subject to corporate income tax.

June 24, 2018/by lawyer

Legal advices

Changing manager LLC Bulgaria

Change in the manner of management and representation or change of the person (s) representing the company

A change in the management of a company may occur when two or more persons are elected in the place of a manager to represent and manage the company together or separately, as well as the appointment of a procurator.

I. In the Commercial Law an option is provided by the manager of the company aloneto request it to be removed from the Commercial Register by giving written notice to the company.

Within one month of receipt of the notification, the company must declare its release in the Commercial Register for entry.

If the company does not do so, the manager may himself file for registration the fact that is entered, whether or not another person is elected in his place. In a nutshell, in order for the manager or the liquidator to declare the deletion alone, the law provided for the existence of two prerequisites – the manager / liquidator / requested the deletion by written notification to the company and the company had not declared its deletion in within one month of receipt of the notification.

The second and more frequent reason for change of manager in OOD is

Election of a new governor after the expiry of the mandate of the old governor or
Withdrawal of the manager’s authorization at any time during his term of office,
Resignition of the manager.

Empowerment of the manager may be withdrawn at any time and his name deleted from the commercial register.

The freedom of the general assembly to free the governor at any time, respectively to elect a new governor, is imperatively regulated by the legislator, and it results from the free withdrawal of empowerment (including empowerment).

There is a complete correspondence between the possibility of the general meeting of the company to withdraw the authorization of the manager / for the dismissal of the manager / as provided in Art. 141, para. 5 of the Commercial Act, the unilateral withdrawal of the manager, with a written notification to the company. The possibility of a free change of the manager is related to the fact that the legislator did not introduce grounds for the dismissal of the manager.

Even in cases where such a foundation is provided in the company agreement, they could not overcome imperatively the art. 141, para. 4 of the CG freedom of the General Assembly to withdraw the authorization, but such grounds would have significance in the search of the manager’s responsibility.

The change of the manager of the company should be entered in the Commercial Register.

Upon the change of the current manager, it is necessary to conclude a new written contract for the assignment of the management on behalf of the company, also the general meeting must take a decision to amend the company contract if the management and representation of the company change are the essential elements of the contract.

This decision must be taken by a majority of more than three-quarters of the capital unless a majority of the company’s agreement is provided.

The decision shall be drawn up with a notary authentication of the signatures and the contents made at the same time, unless a written agreement is provided in the Articles of Association.

The decision shall be entered in the record book. In LLC, a change in the way of management most often means assigning the management of EOOD to a procurator, but it is possible to appoint a governor if the constitutive act does not exclude the possibility of appointing a third party manager.

The procedure for entry in the Commercial Register and the register of non-profit legal entities lasts three working days.

Our legal services includes:

1. Drafting & preparation of the necessary documents, according to the requirements of the Commerce Act;

2. Drafting of applications of the Registry Agency – Commercial Register and all other necessary documents;

3. Transfer & payment of Register state fee for recording changes in circumstances;

4. Transfer of all state fee for Commercial Register, bank Fees;

With our service we will save you valuable time, with our knowledge and skills we will complete the entire procedure for you at moderate competitive prices.

June 24, 2018/by lawyer

Legal advices

Purchase property in Bulgaria

Our law office D.Vladimirov & Partners provide a professional legal services to purchase property in Bulgaria.

The entire process of buying a property in Bulgaria is complicated so we need to check the ideal parts of the ownership right and also the land plot for lack of encombrances.

Once you’ve found a home you plan to buy and agreed the selling price, you will need to take the following steps:

Signing a preliminary contract and pay a deposit.
Signing the notary deed and make the final payment.

The buying process is generally straightforward and is often completed within a month. EU citizens can purchase and own property in Bulgaria in the same conditions as locals.

The process of property acquisition and disposal can be lengthy and complicated and we advise our clients on the significant commercial implications that might arise.

We advise on and draft development agreements, provide legal assistance in construction, planning and site disposal matters, fund-raising arrangements, freehold transfers and any associated due diligence reports.

We assist in the acquisition of real estate in Bulgaria and in the subsequent implementation of investment projects in the field of hotel management and tourism, golf courses, office and commercial buildings, industrial construction works in Bulgaria

Please note we are chariging you for real costs and legal fees, state fees and the tax for transferring of ownership). If a travelling out of Sofia is needed, this would be calculated additionally.Purchase property in Bulgaria

Property legal check-up

Working with many international clients & corporate, our law office D.Vladimirov & partners has created a stable legal work policy for checking of the legal status of your property in Bulgaria.

Acting as a qualified property lawyers in Bulgaria, we performing the legal check services for our clients, depending on complexity of every case in the Bulgarian property register.

We check in the Bulgarian property Register the status of the certain property and report to our clients the final results and warnings, if there are any.

This information would allow you to check whether there are any encumbrances upon your property, for which you do not know, for example: a mortgage for a loan, which is already repaid, interdiction, imposed by the tax authorities for unpaid tax obligations, or any other rights of third persons.

Bulgarian land investment no longer requires company !

As a result of the contractual obligations, undertaken by the Bulgarian government in relation to Bulgaria’s membership in the European Union, an important part of the Bulgarian law was recently changed.

From 1 January 2012 citizens of the EU are no longer prohibited to purchase Bulgarian land, which is in regulation.

Until this date they had to set up a Bulgarian company and purchase land through the established legal entity, as according to the old law only Bulgarian individuals and companies had the right to acquire Bulgarian land.

This led to many unfavourable consequences for foreign investors, such as paying additionally to a lawyer to establish a Bulgarian company, appointing an accountant for the relevant services and making other expenses, related to having and maintaining a company.

Preliminary Contract

The first stage in buying a home in Bulgaria is the signing of a preliminary contract. Your lawyer is responsible for ensuring that this is drawn up correctly and you shouldn’t rely on an estate agent to do so.

It’s important not to pay a deposit or sign a preliminary contract prior to performing an in-depth due diligence of the property.

Check that the property has the same dimensions as advertised, if there are any undisclosed encumbrances (i.e pending costs) and that all the necessary permissions and documentation are in place.

While some agents or developers will provide a properly-drawn up contract, some won’t – and unless you’re a Bulgarian-speaking lawyer you won’t be able to tell which is which!

For peace of mind it’s recommended that you have the contract drawn up or at least checked by a Bulgarian property lawyer.

There are a number of types of preliminary contract, depending on whether you’re buying an existing (built) property or a new property off plan (i.e. yet to be built or under construction).

Signing the Notary Act

Signing the notary act (sometimes referred to as the notary deed, purchase contract or final contract, which is equivalent to a title deed) is the final step in taking ownership of your property.

If you’re unable to be present at the signing, you can have your agent or lawyer sign it on your behalf if you’ve given him power of attorney.

You should always sign the notary act in person if you’re buying a brand new or off-plan property, to make sure that all the requirements of the preliminary contract have been met.

The signing of the notary act takes place in front of a notary public, who first checks that all the conditions contained in the preliminary contract have been fulfilled.

It’s normal for all parties concerned to be present when the final contract is read, signed and witnessed by the notary, including the estate agent, developer (for new or off-plan property), your lawyer and your translator.

Either party (buyer or seller) can give a representative power of attorney. In the case of an off-plan purchase, the final contract isn’t signed until the building is complete.

Find independent legal advice for purchase property in Bulgaria

Numerous property owners are now experiencing problems with their property because they did not seek independent legal advice and instead used lawyers and translators which were recommended by the estate agent or developer and they were acting for both parties.

Appoint a qualified lawyer, who is experienced in property conveyance and fully independent of anyone else involved in the transaction, eg the estate agent, vendor or developer.

If you need our legal assitance, do not hesitate to contact us immediately

May 20, 2018/by lawyer

Legal advices, News, Personal

Recovery of Unpaid Invoices

Many corporate clients comes to our office with the legal inquiry to support for Recovery of Unpaid Invoices.

Recovering unpaid invoices can be a frustrating and time-consuming affair for any business, especially when dealing with international clients.

At our firm, we recognize the critical importance of swiftly and effectively pursuing outstanding debts to maintain your cash flow and business stability.

We have tailored our Debt Recovery Service specifically to meet the needs of our commercial clients in Bulgaria, ensuring a vigorous yet cost-effective approach to debt collection.

Why choose our debt Recovery of Unpaid Invoices service ?

Our Debt Recovery Service is not an automated system;

it’s a comprehensive solution operated by a specialist team of solicitors with extensive experience in Bulgarian law.

We understand the unique challenges businesses face in debt recovery.

Expertise: Our team comprises highly skilled solicitors who are well-versed in Bulgarian debt recovery laws and practices.
Efficiency: We aim to recover debts of any size quickly, minimizing the impact on your business operations.
Cost-Effective: We provide transparent and competitive pricing to ensure that the cost of recovery does not outweigh the benefits.

Our proven debt recovery process

The legal debt recovery process is streamlined to maximize results while minimizing the time and effort required from your side.

1. Initial Step – Suprizing the debtor with freezing his assets

The process begins with the claim in the court.

The urgency and seriousness conveyed in the letter often prompt a quick response from the debtor, leading to the resolution of the debt without the need for further action.

2. The issue of legal proceedings

If the debtor fails to respond to the ‘letter before action’, we proceed by issuing a County Court claim form.

This formal legal action includes claims for the original debt, court fees, costs, and interest.

The initiation of legal proceedings often serves as a significant motivator for debtors to settle their accounts promptly.

3. Interest debt collection

We understand the importance of recovering not just the principal amount but also any interest that is due. Interest can be claimed in several ways:

Statutory Interest: Currently 10% from the due date of the invoice until Judgment.
Contractual Interest: As stipulated in your terms and conditions.

Tailored Solutions for Bulgarian Debt Recovery

We pride ourselves on providing more than just a computerised system.

Our debt recovery service is personalized to meet your specific needs, and we are committed to providing the highest level of client service.

Whether you are dealing with a single large debt or multiple smaller ones, we support you in Bulgaria.

We have the tools and expertise to ensure you recover what is owed to you, with minimum hassle and expense.

How Can We Help You?

If you are facing challenges with unpaid invoices, don’t let them drag on.

Our team is ready to act swiftly and decisively to protect your interests and improve your cash flow.

Get in Touch Today

Fill out our online form, and we’ll get back to you as soon as possible. Alternatively, speak directly to one of our debt recovery experts by calling

December 11, 2017/by lawyer

Legal advices

Management of Condominium Buildings

Public relations regarding the management of common parts of buildings under condominium ownership arrangements and rights and obligations of owners, tenants and occupants of individual units or parts thereof, are regulated under the Condominium Ownership Management Act (COMA), (effective as of May 1st, 2009, published in the State Gazette, issue 6, dated January 23rd, 2009, amended in SG, issue 15 dated February 23rd, 2010, amended in SG, issue 8 dated January 25th, 2011, amended in SG, issue 57 of July 26th, 2011).

The special regime of management of the common parts of buildings under condominium ownership arrangements is introduced for buildings in closed residential complexes shall be arranged with a written contract, with notarized signatures, with the investor and the owners of individual units, which are parties thereto. The agreement has to be registered with the Registry Agency on the lot of each individual unit by the investor, and shall be referenced to subsequent purchasers.

Exceptions to the management of the common parts of buildings under condominium ownership arrangements are introduced for buildings, which contain up to three independent units, which are property to more than one owner. In these cases, the provisions of article 30, paragraph 3, article 31, paragraph 1 and article 32 of the Property Act shall apply.

Condominium Management shall cover procedures and shall supervise the use and maintenance of the common areas and compliance with the building internal regulations under condominium ownership arrangement, and the supervision over the fulfilment of the obligations of the owners, users and residents.

Forms of Condominium Management are the General Meeting and/or the Association of Owners.

The management bodies are: the General Meeting and the Managing Board (Manager).

The General Meeting of the Association shall be authorized to make a decision, adopted by a majority of more than 50 percent of the represented shares in the association, to assign the powers of the Management Board (Manager) to non-owner individuals. The contract for authorization shall be executed by a person, authorized by the General Meeting of the Association.

Expenses for the management and maintenance of the common parts under the condominium ownership arrangement will be equally shared by owners, users and residents.

Repair, renovation, reconstruction and rehabilitation of common parts or replacement of common facilities and equipment shall be carried out under the decision of the General Meeting of owners. The General Meeting of the owners or the Association establish and maintain a Repairs and Renovations Fund. Expenses for repairs, renovation, reconstruction and rehabilitation of the common areas, referred to in the respective decision of the General Meeting of owners, shall be distributed among the owners of the individual units, proportionate to the notional shares of the common parts of the building, held by them.

For any issues, not covered by the COMA, the provisions of the Ownership Act will apply.

The list of main obligations to be complied with includes, but shall not be limited to: to not prevent all other owners, operators and occupants from using all common areas of the building; to not cause damage to common areas; to not rent them; to not participate in activities, which cause excessive disturbance and inconvenience to other occupants; to fulfil the decisions of the General Meeting; to make payments for the expenses required; to comply with the sanitary and hygiene standards, et al. A Condominium Log has to be organized, kept and maintained in each building which should contain the relevant information on the property, owners, users, et al. The decisions of the governing bodies, adopted in accordance with the condominium ownership arrangements, shall be absolutely mandatory for all building owners.

Often, property owners who are foreign nationals employ management and maintenance companies to perform all internal organization works for the building, pay bills, collect payments from owners, rent apartments on their behalf, et al. Services of such companies can be easily found through the internet. It is strongly recommended to sign a contract with such a company and follow the advice of your legal counsel.

December 9, 2017/by lawyer

Legal advices, News, Personal

Preventing property Frauds

Preventing Property Frauds

In the wake of the global financial crisis, the rise in unemployment and the drop in consumption in Bulgaria, crime levels are on the rise, property related fraud in particular.

The bad actors range from educated professionals to poorly educated individuals.

The National Police Directorate General has classified different types of crime into the following main sub-types:

Acts or failures to act by legal entities /investors and contractors for residential building developments/ and public administration officials responsible for the approval of architectural designs, development plans, et al. This exists due to the information gap about local laws and mediators’ malpractices. These types of fraud most often involve violations of the zoning and spatial planning legislation and/or civil law.
The second group involves individuals who, acting unlawfully, acquire or dispose of properties of third parties, who are bona fide owners. This type of fraud is perpetrated through embezzlement of proceeds from time share, misuse of personal data and its use to “acquire” the property. The fraud relies on misleading foreign buyers, using the fact that buyers are not familiarized with the domestic legislation. Fake brokers are set up and involved in a “negotiation” and document exchange process.
Buyers often rely on the brokers and fail to investigate the developer of the building. Another sub-type of this fraud involves properties of foreign nationals, who have acquired properties through companies and said properties have been listed on the balance sheet of their company.
Since the information in the Commercial Register is public, fraudsters have access to the identity documents, UCN/PNF, address and other data, in particular – the signatures of the partners/managers of the company. This data is then used to produce false documents in the name of fictitious persons.

Such documents may include:

Last Will and Testament or Donation – widely used for acquisition of property of deceased or mentally incapacitated individuals.

Certificate of Death/Certificate of Inheritance – in most cases used to acquire the complete documentation for further transaction with property of deceased persons.

Abuse of mentally incapacitated persons, who are not placed under guardianship and are in a mental institution.

Often the documents have the authentic signature of the owner, who has been mislead/taken advantage of by the fraudsters, who have created a relationship with them.

Two types of real estate fraud that are on the rise in the past 12 months:

Fraudsters impersonate individual homeowners and use stolen IDs to sell or mortgage properties. The mortgage or sale happens quickly and the fraudulent proceeds are dissipated outside the jurisdiction almost immediately.

The CBC recently reported that a handful of organized crime syndicates are behind these real-estate frauds, in which 30+ homes in the GTA have either been sold or mortgaged without the owners’ knowledge.

Fraudsters dupe unsuspecting homeowners into registering one or more mortgages on their properties at “cut rates.”

The unsuspecting homeowners end up with one or more mortgages registered on title to their properties on terms they never agreed to while failing to receive some or all of the mortgage proceeds advanced by the lender.

Minutes of Meetings with decisions to change the manager of a limited liability company, substituting the real manager with a person involved in the fraud.

Changing Partners in a limited liability company by selling shares and a transaction for disposal with the company property by the “new” partner.
Court rulings for awarded ownership/claim.
Court rulings for recovery of ownership rights.

Our services in property Frauds

Promissory note /frequently falsified document/, used to initiate enforcement proceedings at private bailiffs and enforcement of injunctions on the property of the debtor.

Failure of the debtor to secure the claim means the property is subject to a public auction, and in some cases the property is acquired by a fictitious person at prices several times lower than the market prices.

The National Automated Information Fund for Bulgarian identity documents connection system has the goal of preventing attempts of fraudulent real property transactions using false identification documents.

Furthermore, Notary Publics have access to the Property Register of the Registry Agency and to the National Database “Population” (for data on legal successors of deceased persons).

December 8, 2017/by lawyer

Legal advices, News, Personal

Selling your Bulgarian property

Selling your house, land or apartment is a very important action, particularly if it is owned by a domestic registered limited liability company in your name.

Our legal department has prepared this article in order to lead you through this procedure which may look like a labyrinth , but in fact is quite easy and straight forward when you know what exactly you need and which step follows next.

Real property agents may try to conceal the tax complications which may arise from selling a real property at a price higher than the price of initial purchase under the Title Deed.

Should the occasion arise, the owner of the property, i.e. the domestic limited liability company owes capital gains tax.

Please take into consideration that the legal aspect of the transaction is the one which will ensure the positive financial outcome of it, by ensuring you are not liable for damages due to making misleading statements in the new Title Deed (drafting a Title Deed is one of the services we offer).

Please also note that you will need to do the following before you initiate the sale:

– ensure the property or the company that owns the property is in good standing (cadastre registration, no outstanding payments for taxes, no encumbrances on the property, et al.)

– getting up to speed on the current real property market situation and any possible Capital Gains tax complications after the sale – get information on fair market values of similar properties in the area in order to correctly determine the going price of your property.

If you own the real property through a company, selling a property entails some accounting costs as well.

– marketing the property – make sure any real estate brokers or agents are marketing the property at the asking price; ensure also that you will only pay the requisite fees after the actual signing of a Title Deed.

Please note that in case you are selling a property through a company, you should require a VAT invoice for any and all fees payable.

The full price for the sale should be listed on the Title deed before signing.

Make sure any and all reservation deposits are transferred to your account and not to the real estate agent account, as there is a risk of the real estate agents acting unfairly and keeping the deposit.

We are happy to prepare the relevant documents and act/negotiate on your behalf to protect your legal and financial interests before real property agents and to guarantee you will receive all amounts payable to you and to ensure you get the full benefit from your sale. Consider hiring us to act on your behalf a good move.

How to find the right buyer for your property is easily the hardest part of the process.

We can help you by examining your documents and help you in listing your property for sale.

After having successfully found a buyer, we will collect information from the buyer about their selected method of funding the transaction (by way of example – a mortgage loan).

A crucial element of our job is to ensure a smooth sale process.

We will act in good faith on your behalf and ensure that you received the deposit and mediate in paying the legal fees for obtaining the requisite documents.

– Obtaining the requisite documents for the sale of your property in Bulgaria. Please be aware that this is a lengthy process – application for documents are filed to the Land Registering Agency, to the Cadastral Agency, the National Revenue Agency, et al. Please also be aware that your prospective buyer (or their lawyer) may require examining the documents before agreeing to go through with the purchase.

– Please be advised of the Cadastral Plan particulars as regards to properties. Your property needs to be registered with the Cadastre Agency and prior to selling your property, you need to obtain a Cadastral Plan and present it to a Notary Public.

This is particularly important for properties you own in Sunny Beach, Bansko, Pamporovo, Kavarna, Sozopol, et al., since it is there that a Cadastral Plan is existing already.

For further details on the Cadastral Plan, please visit our section “Cadastral registration”.

– Effectuating the sale: You have two options at your disposal.

You can go for direct signing of the Title Deed for the sale of a property, or you can do a preliminary contract first, against the receipt of a deposit payment.

Naturally this is the key point of the sale process and we will be happy to assist you in creating both the preliminary agreement and/or the Title Deed for sale, based on your existing documents.

We will have those translated and approved by you prior to signing.

It will also be our responsibility to set an appointment with a local notary public acting in for the area of location of your property. You can also authorize us to appear before the Notary Public on your behalf and save yourself a trip to Bulgaria.

– Post-sale: After you complete the sale and sign the Title Deed, we can provide you with a copy and we can help you deregister it from your file with the Bulgarian Revenue Agency to make sure you are no longer paying local property taxes for that property.

We also offer the service of exchanging the public utility company batch registrations.

List of legal documents, needed for the sale of properties in Bulgaria

The main document proving your ownership is the Notary Deed.

You should have received it when you first bought the property. If you by any chance have lost it it doesn’t mean you have lost your ownership. Contact your agent for assistance to have a notarized copy issued from the notary who has initially signed the deal.

You need additionally the sketch for the property – the sketch is issued by the local technical department in the Municipality where your property is located.

The sketch could be ready in 24 hours. In order to put a request for a sketch you will need a copy of the notary deed.

Once a sketch is issued it is valid for 6 months. After that the whole procedure should be done again!

The next documents, which is nessesery for the sale of property in Bulgaria is a valid Tax Evaluation Document, issued by the Local Tax services Office in the Municipality where your property is located.

If you are selling the property as a phisycal person, you will need to have a document stating your Marital Status.

This document you should supply from your own country and get it translated and legalized in Bulgaria.

If the property has been bought during your marriage you will need a letter of attorney by your spouse for the deal. So for this it is important what was your marital status by the time when you have purchased the property.

One of the documents, which will be needed is a legal certificate of lack of encumbrances– this document states that there are not established real rights in favor of third persons for the property you are selling.

This document is issued by the Registry Service in your Municipality.

When submitting a request you have to provide the notary deed for the property. If the property has land you have to supply a sketch as well.

This document is valid only 24 hours. Some notaries do not request this paper as they are checking it automatically at the day of the deal.

Legal declaration for citizenship and marital status as per article 25. 7 from the Notary Law act.

This document should be filled before the Notary public on the day of the transfering of the ownership over the property.

Legal declaration stating that you don’t owe any taxes to the Republic of Bulgaria.

In case you as an owner will not be present at the deal , make sure that you have an accurate letter of attorney signed and notarized ( apostilled) by you with which you empower a lawyer or someone you trust to sign on your behalf and on your account !

Property is owned by a company

……you need to provide a company decision for the purchase / sale of property If you own the property as a company you will need a written decision of the share holders in the company that you have decided to sell this property which is an asset of the company.

It should be signed by all shareholders and stamped.

By law when providing this paper there is no need all the shareholders to be present at the deal as far as the manager is present but many Notaries will require it!

Please note that in some cases you may need additional papers due to some complicated form of ownership. In each case we advise you to use us for your own security!

We would like to advices you not to forget you passport !

Our law office will represent you and provide guidance in each of the steps listed.

Please contact us if you have any questions or if you need any assistance on the matters detailed herein.

December 8, 2017/by lawyer

Legal advices

Termination of shareholder

Termination of participation Ltd and leaving partner – rules and consequences.

The limited liability company (LLC) is one of the most common forms of organization of business. This is due, among other reasons, and has long recognized its dualistichnost – although Ltd. is a capital company it shows some deviations that correspond to the essence of unincorporated enterprises. Examples include the regulation of rights and freedom in which they occur, exercise and termination resemble those partnerships.

Therefore reveal peculiarities and possibilities of termination of membership relations of the partner as the latter is more difficult to be freed of adjacent its involvement than a typical capital company, since the law provides for additional requirements for the sale of its units.

Leaving partner

The departure of a partner is regulated in art. 125, para. 2 of the Commerce ActWhich provides potestativno subjective right partner to terminate its participation in the company. Regardless of the reasons for leaving, his right is transformative, regardless of whether it violated his duties as a partner. Leaving has its practical applicability as a way out of the company’s inability to sell a share. It is exercised by a written statement, the legislature uses the term “notice” that statement needs a receipt, written form of reality. There is time – the partner must notify the company of their intention three months before the termination of his membership. The length of time is governed dispositive and articles of association may provide for another term.

Moment that occurs termination of membership relationship is not explicitly defined in law, but the case law assumes that termination should be considered as occurring ipso facto at the time of expiry of the period as for the adoption of a further resolution of the General Meeting of the company does not exist (so in Decision № 46 of 22.04.2010 of the SCC under item. e., the № 500/2009, II t. o., TC ). This solution meets the potestativniya nature of the right to associate. The entry of termination of membership relationship is warning, but not constitutive effect. Next – the settlement of property relations on the occasion of the termination is a result, but in no case provided for its occurrence. consequences

Termination of shareholder

Termination of membership relationship entails the multiple effects as in practical terms the outgoing partner should first be noted pecuniary consequences that each sadrzhunik leaving (exit) aims to achieve. Exit, in this sense, an opportunity for a partner who could not sell its stake in the company for any reason, however, to indemnify the same while terminate its relationship with the company.

Termination is the former partner transformative effect on the occasion of his relationship with the company – the same one occurs monetary claims he is entitled to receive a cash equivalent, a feature of interest in the company. Art. 125, para. 3 defines how to govern the property consequences – namely, based on the balance sheet at the end of the month in which the termination occurred. Basis for making money is an interest to a partner, the amount of which is determined according to its share capital (Art. 127 CC). It is possible the partner to get something else, but this is a consequence of an addendum instead of giving performance between the shareholder and the company. As a rule, chargeability making departed partner comes to the moment of his departure (the deadline).

A major interest for each partner who wishes to have information about their legal options for monetary satisfaction by participating in an LTD is a provision of Art. 125, para. 3, which determines the timing of the balance sheet that will calculate its claim. Jurisprudence ( Decision № 224 of 10.09.2010 of the SCC under item. E., The № 765/2008, II t. O., TC) Assumes that this statutory provision is mandatory in nature and the partners can not overcome it with any agreement to the contrary, neither provision in the articles companies. Personal companies. Company limited liability). Such an agreement would be void pursuant to Art. 26, para. 1 of CPA. In this sense it appears and void proviso that outgoing partner will be satisfied, as the basis for calculations adopt the annual financial statements of the company.

The balance sheet will determine which assets and liabilities should be taken into account when calculating the monetary value of a share. Pursuant to Art. 125, para. 3 Commerical law raises the question of how exactly to calculate the value of the property, in particular that of tangible assets (FTA). According to the obligatory practice of the SCC value of fixed assets in the form of a share according to art. 125, para.3 Commercial law should be determined by experts in compliance with the provisions of the repealed Law on Accounting, Art. 13 in conjunction. With § 1, p. 3 dopaltnitelnite provisions and any applicable accounting standards (Decision № 87 of 6.06.2012, the SCC under item. E., The № 468/2011, II t. O., TC).

Termination of shareholder

The decision should be considered obsolete, because References to the provisions did not alter its meaning essentially. The cost of fixed assets will be formed by the historical cost of acquisition or such other price which corresponds to the accounting standards – namely fair price. The definition of fair value has remained the same and the adoption of the new Law on Accounting, “the amount for which an asset could be exchanged, or a liability can be redeemed at arm’s length transaction between knowledgeable, willing transaction buyer and seller.

She’s selling price, stock exchange price or market price. “The annual financial statements should not serve as a basis for calculation. The ultimate goal, the fair amount that outgoing partner should receive is achieved with an inventory and evaluation of assets (and liabilities) of the Company accounted for and valued the time stipulated by law. It should be pointed out that the balance sheet has no binding court material probative and challenge the underlying accounting entries regularity them subject to an express check, while failure of such interim balance sheet of the debtor, on conclusion of the admitted and heard in the course of proceedings specialized legal and economic expertise . Termination of shareholder

With respect to the same are used for general rules of art. 195 et seq. CCP, according to which the conclusion of the experts is not absolute proof in the case, regardless of the action taken or not challenge his party. With respect to the same are used for general rules of art. 195 et seq. CCP, according to which the conclusion of the experts is not absolute proof in the case, regardless of the action taken or not challenge his party. With respect to the same are used for general rules of art. 195 et seq. CCP, according to which the conclusion of the experts is not absolute proof in the case, regardless of the action taken or not challenge his party.

As a conclusion, it should be pointed out that although the shareholding which serves to determine the making of outgoing partner to resemble a liquidation share, it differs from it in the operative event and, therefore, should not be treated equivalent. Their value may substantially differ. Termination of shareholder

October 17, 2017/by lawyer

Uncategorized

Registration of tour operator and travel agent

Tour operator or travel agency activity in the Republic of Bulgaria only be performed by registered under tourism entities (merchants). The procedure is regulated in detail in Art. 17 et seq. Of Chapter IV, Section I of the PA. Registration is done by the Minister of Economy, Energy and Tourism (MEET) in the register of tour operators and travel agents (RTTA), which is public.

Legal requirements

Documents for Selling Real Estate

For tour operator or travel agency activity in the register fits a person who meets the following requirements: a trader within the meaning of the Commerce Act or legal person is entitled under another law to implement economic activity; have staff with appropriate education, language skills and experience; person performing management functions tour operator or tourist agency has appropriate education, language skills and experience; It has secured suitable premises for tour operator or travel agency activities; It has signed a preliminary contract for insurance under Art. 42, para. 1 of PAs; It is not in liquidation or bankruptcy; It has made no tour operator or travel agency activity without license / registration in the last 12 months;

Nessesery documents for registered persons shall submit an application form stating: type of tourism, for which registration is sought, the name and address of the registered office, address and identification code, if any, and at the tourist site.

Documents (applications)

The application for registration shall be: copies of documents certifying that the entity has the right under another law to implement economic activity; declaration that the person is not in bankruptcy or liquidation; Information for education, language skills and experience of staff who will be engaged in the realization of tourist activity;copy of the documents certifying their education, experience and language skills of the person performing management functions tour operator or travel agency activities; reference location, suitability and equipment of rooms for the exercise of tour operator or travel agency activities; a copy of the title deed or lease, as well as another document from which derives the right to use the premises, valid for at least one year from the date of application; a copy of the preliminary contract for insurance under Art. 42, para. 1 of PAs; a declaration that in the last 12 months prior to submitting the application, the applicant has not performed the tour operator or tourist agent activity without license / registration and has not revoked license / registration canceled for tour operator or travel agency activities; document for paid fee for handling documents according to the tariff of MS. that in the last 12 months preceding the application, the applicant has not performed a tour or tourist agent activity without license / registration and has not revoked license / registration canceled for tour operator or travel agency activities; document for paid fee for handling documents according to the tariff of MS. that in the last 12 months preceding the application, the applicant has not performed a tour or tourist agent activity without license / registration and has not revoked license / registration canceled for tour operator or travel agency activities; document for paid fee for handling documents according to the tariff of MS.

Consideration of application for registration

The application for registration of a travel agent / tour operator together with the documents attached thereto shall be submitted to the Ministry of Economy, Energy and Tourism. Expert Commission for registration of tour operators and travel agents consider the applications within two months from the date of their submission and rule on them with a reasoned proposal to the Ministry of Economy of the registration or refusal of the registration. If the deficiencies or irregularities in the documents submitted by the trader ECRTTA 30 days to correct them. Minister of Economy, Energy and Tourism based on the proposal of ECRTTA within two months of receipt of the application to the ministry with registration and issue a registration certificate or motivated refuse the registration.

Other conditions

refusal of registration may be appealed under the Administrative Procedure Code (APC). The registration and the registration certificate is valid indefinitely. Rights registration can not be transferred or ceded. Registered persons shall issue a certificate of registration, which is placed prominently on the tourist site.

For the examination of documents and entry in the register of tour operators and travel agents collect fees tariff approved by the Council of Ministers. Currently, state registration fees for travel agent amounted to 2,500 lev, while tour operator – 5000 lev registration requirements are specified in an ordinance adopted by the Council of Ministers (see. The Ordinance on the staff of tour operators or travel agents to face performing management functions of the tour operator or travel agency activities, and to spaces for tour operator or travel agency activity). It is expected that the adoption of the new Law on Tourism, which regulates cases of sale of travel services over the Internet.

October 16, 2017/by lawyer

Legal advices, News

Register a limited company in Bulgaria

Set a limited company in Bulgaria is a company formed by a contract between two or more persons to carry out business under a common firm.Register a limited company in Bulgaria

This is the situation, when one or more of the partners are jointly and fully liable for the obligations of the company, and the rest are only responsible to the extent of the payment agreed. Register a limited company in Bulgaria

Тhe name of at least one full liability partner and should be of a national exclusivity.

The contract for the establishment of a limited partnership shall be made in writing with the notarized signatures of all members and must contain the requisites set out in the provisions of Article 102 of the Commercial Law.

Requirements for set up of Limited company in Bulgaria?

The establishment of a limited partnership does not require any initial capital.The entry of a LP in the Commercial Register is based on an application form. It can be requested by any of the full liability partners or by a lawyer with an explicit written power of attorney.

The limited partnership has got two categories of members – full liability and limited liability partners. The management and representation of the company supposed to be made by the full liability partners. Register a limited company in Bulgaria

The full liability partners do not make any financial or material contributions to the company.

On the other side, limited liability partners are required to make a financial or material contribution in the company but they have no right to manage.

The limited partnership is the second form of partnerships regulated in the Bulgarian Commercial Act. It differs from the general one in respect of the partners’ participation.

There are two different types of partners to the limited partnerships – ones that bear unlimited liability (general partners) and ones that are only limitedly liable (limited partners).

According to the Commercial Act, the limited partnership consists of at least one general and one limited partner.

The partnership is founded on the basis of a partnership contract.

The trade name of the formation must contain the name of at least one of the limited partners.

According to Article 101 (2) of the Commercial Act, a limited partner is deemed to bear unlimited liability, if his/her name is included in the trade name of a limited partnership.

The internal relationship between the limited partners is similar to the relationship between the partners of the general partnership, except for the rights and obligations.

The general partners are obligated to deposit a contribution.

This contribution determines their share in the future profits and their liquidations quatas. Also, limited partners are subject to the obligation of loyalty – without the consent of the other partners, one partner may not have got a rival commercial activity.

With regards to the external relationships of the company, the limited partners do not have got an important role.

Mainly, they do not participate in the management unless they are expressly nominated to.

According to Article 112 of the Commercial Act, limited partners bear unlimited liability for legal transactions that have been conducted in the name of the partnership before or after its foundation, whenever the creditor did not know that he was contracting with a limited partner.

Otherwise, limited partners bear liability toward the partnership’s creditors to the extent of the contribution made, even if it has not been paid completely.

This provision also applies regarding losses of the partnership. In General partners bear personal, unlimited, joint and several liability.

April 1, 2017/by lawyer

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Registration of a branch

In the internal relations, the branch is dependent on the trader and this dependence is manifested in different directions, for example in:

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Changing manager LLC Bulgaria

The change of the manager of the company should be entered in the Commercial Register.

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