Stages of court litigation in Bulgaria
Bulgarian Legislation has a several levels of court litigation. Basically yhe court litigation in Bulgaria has been created and settled in four different instances (stages).
The first instance court litigation in Bulgaria – the city court
The first instance court litigation in Bulgaria involves the investigation and filling up the statement of claim. During the first stage of the litigation in Bulgaria, a lawyer starts the investigation of the factual basis of the claim and the legal theories of liability.
After the claim is filed together with all available written evidence, the defendant party in the litigation in Bulgaria shall be officially notified by the court and shall submit its position, also known as a “response”.
Usually it denies the allegations, filed by the offender party and denies any liability for the claim.
The judge shall schedule open court hearings for the litigation in Bulgaria where witnesses and experts appointed by the court may be questioned by the judge and the parties. Once the judge decides that all
facts on the case of the litigation in Bulgaria are clear, the parties present their final oral arguments, and the case is closed.
The judge renders the decision in close chambers and officially notifies the parties on its content. The first court instance of the litigation in Bulgaria may take one to three years depending on the complexity of the dispute.
The second instance court litigation in Bulgaria – the appealing court
Within two weeks after the notification for the first instance court decision in the litigation in Bulgaria the parties are entitled to appeal it before the second instance court.
Under certain conditions the panel of three judges may allow new written and oral evidence. This stage of court litigation in Bulgaria usually takes one and a half year.
The third (last) court instance litigation process – the Supreme Court of BG
The third final stage of court litigation in Bulgaria is the cassation stage, which in contrast to the previous stages is not applicable to all cases.
Both parties are entitled to file a cassation appeal, however, the Supreme Court of Cassation decides which cases will be heard depending on their subject matter and significance for the development of the law.
The cassation decision of the litigation in Bulgaria is mandatory not only for the parties but also for the judges when deciding on similar cases. This stage of court litigation in Bulgaria usually takes one and a half year.
Execution stage of court litigation in Bulgaria
The fourth and last stage of the court litigation in Bulgaria is the execution of the final decision on the case. A writt of execution shall be issued by the court, then public and private bailiffs are vested with enforcement powers.
In case the debtor does not pay voluntarily, the bailiff shall attach and sell its property (i.e. money in bank accounts, real estate assets, movables, etc.) until the final satisfaction of the creditor.
Execution tends to be more successful if the creditor has been granted interim relief prior or during the court litigation stages securing its claim in advance.
Criminal & Defence Lawyer
The criminal litigation in Bulgaria refers to the process of trying a criminal defendant in a court of law.
Criminal litigators come before the Bulgarian court in two varieties:
The first level is a criminal prosecution level, who present the government’s case against the defendant.
The criminal defense attorneys, who represent the interests of the defendant. Criminal & Defence Lawyer
Criminal prosecutors practice at either the state level or the federal level, while criminal defense attorneys generally maintain private practices or work as public defenders for the state or federal government.
Whether prosecutors or defense attorneys, criminal lawyers handle a wide variety of cases, from white-collar crime, violent crimes, sex crimes and drug trafficking, traffic offenses and misdemeanors.
Some concentrate on white-collar crime such as fraud, embezzlement and insider trading.
Providing legal assistance and protection against detention and arrest; Contesting detention;
Litigation, protection and assistance in the enforcement of detention measures “Detention on remand”, “Home arrest” and “Money guarantee”;
Providing legal assistance in criminal litigation process for protection and procedural representation of defendants at the stage of pre-trial proceedings;
Procedural representation in proceedings for early release, replacement of the regime for serving the sentence, interruption of the execution of the punishment;
Litigation, protection and assistance in European Arrest Warrant:
Procedural representation in the transfer of convicted persons, recognition of a foreign court verdict, international legal assistance in criminal cases;
The litigation court proceedings has been developed before the Bulgarian city courts,appealing level and Supreme cassation Court;
Criminal litigation in case resolution by concluding an agreement with the prosecutor’s office;
Criminal litigation in the discharge of criminal liability by imposing an administrative penalty;
Providing legal assistance, protection and assistance to victims of crime;
Providing legal assistance, protection and assistance to victims of traffic accidents, accidents at work and benefits;
Providing legal assistance, protection and assistance to an injured person in private-criminal cases – insult; defamation; slight bodily injury;
Providing legal assistance, protection and assistance in the face of police violence;
Our main activity as a criminal defence solicitors & criminal lawyers are following:
Participation in the conduct of investigative and judicial proceedings;
Assistance and assistance in the return of material evidence which has been seized during the investigation and return of the guarantees provided.
Getting enforcement letter Bulgaria
Procedure for issuing an order for payment
The order for payment procedure is a court procedure that is used to simplify the enforcement of monetary claims and the restitution of property.
Its object is obtaining of a writ of execution without a legal trial.
The fees for initiating the procedure for issuance of an order for payment amount to 2 % (two percent) of the value of the claim.
In addition, the claimant could incur some expenses for attorney’s fees, which depend on the value of the claim.
If the debtor raises objections against the issued order for payment and a trial begins. Getting enforcement letter Bulgaria
If the debtor fails to raise objections, a writ of execution shall be issued in favor of the claimant and on its grounds an enforcement procedure begins, the additional costs of 2 %
The procedure of getting enforcement letter Bulgaria…
Under the current Civic code, and in particular the provisions of Art. 410 and Art. 417 CC, anyone can ask the district court to issue an enforcement order.
The order of execution is valid ground for issuing a writt of enforcement letter.
In this sense, the enforcement order replaces the judgment as such.
The purpose of this commandment is a quick, surprising and more economical process.
This in practice means that the claim can be based on almost any basis – a contract of employment, a rent contract, a loan contract, and any kind of bonding relationship in general.
The proceedings shall begin with an application by the applicant (the creditor) to the district court under the common local jurisdiction – at the permanent address of the debtor.
The applicant must also reflect the basis on which he refers for his affection. Getting enforcement letter Bulgaria
This practice may be a contract or other documents showing that the claimant has one claim from a creditor.
In turn, the debtor may object to the warrant issued within 14 days, which in any way has no evidential value for the existence of the claim up to that point.
It becomes the enforceable ground on which to issue a writ of execution in order to initiate enforcement proceedings against the debtor.
Of course, he may also voluntarily pay his debt if he acknowledges it within the same 14-day period following the receipt of the order.
If, however, he objects to the general claiming process, the claimant in the order for the proceedings has a one-month term from contesting the claim in which he can file a claim with the same court.
Register tour operator
Bulgarian travel agency or tour operator businesses can be conducted only by Bulgarian companies that are listed in the Register of Tour Operators and Travel Agents, part of Bulgarian National Tourism Register. The registration is made with the Ministry of Economy, Energy and Tourism upon filing an application by the candidate together with a number of documents confirming that the applicant matches the criteria specified in Bulgarian Tourism Act and sub delegated legislation. Below we have summarized some of the basic registration requirements prescribed in Bulgarian Laws.
To begin with, those who want to be listed as Bulgarian tour operators and / or travel agencies must be:
- Either merchants (Bulgarian companies) registered as per Bulgarian Commercial Act or
- Legal entities entitled to conduct business under any other law of an EU member state country or another country within the European Economic Area
Any of the above two categories have the opportunity to register as full-service providers or online providers of tour operator or travel agency / tour operator services. The second option is relatively easier. Tour operators and agents that offer only online services benefit from a simpler registration regime and fewer application documents for their listing.
Generally the requirements can be classified in 5 groups:
Requirements to the professional qualification, education and experience of the person who will manage the Bulgarian tour operator or tourist agent activity;
Requirements to the staff – education, language skills and work experience;
Requirements to the premises (front office) where the business will be physically conducted;
Requirements related to the insurance of the tour operator / tour agent in Bulgaria;
Additionally to the above, the applicant must show proof that it is not under a liquidation or insolvency procedure; it has not operated as a tour operator or travel agent without a license for the last 12 months; its certificate for registration has not been cancelled for the last 12 months.
With our service we for tour operator, touristic agency:
- We will complete the registration procedure for your new company as a tour operator and / or travel agent for you.
• We will prepare, fill in and submit the necessary documentation for your company registration in the Tour Operator Register and Travel Agents. • We will provide appropriate training and qualification for your staff if you need them. • We will save you valuable time, and with our knowledge and skills we will carry out the entire registration procedure of a tour operator / travel agent in the Register of Tour Operators and Travel Agents for you at moderate competitive prices.
- The operation of the registration and the registration certificate is indefinite.
- Registered persons are issued a registration certificate, which is placed in a prominent position on the tourist site.
- The tourist voucher is issued for domestic and outbound tourism only by a registered tour operator.
- The tourist voucher can be provided to the tourist and travel agent only in the name and on behalf of a registered tour operator.
- The travel agent is not allowed to issue his / her own tourist voucher.
If you have any queries or ambiguities regarding the registration of a tour operator or travel agent, contact the team through the ONLINE CONSULTATION form and ask your question.
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.
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
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 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.
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.
Under the Bulgarian tax legislation the profit generated by a foreign company’s branch established in Bulgaria is subject to corporate income tax.
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.
Applying transport licence Bulgaria
This development concerns the registration of a freight transport company within the European Union (the procedure for registering a freight transport company on the territory of the Republic of Bulgaria is similar).
Any transport company applying for a freight license must meet certain specific requirements, namely:
At the same time, the transport company must have no tax and social security obligations unless it is deferred or deferred under the Tax and Social Insurance Procedure Code, as evidenced by the Certificate for the existence or absence of tax liabilities.
Trade representation office
Many of our clients are foreign entities wishing to register a commercial agency or branch office of a foreign legal entity in Bulgaria. In this regard, working as lawyers in commercial cases in Bulgaria, we would like to inform you that all foreign persons engaged in commercial activities may open commercial offices in our country.
Commercial representation of foreign person has got the right to operate an independent business. The regime of any commercial representation of foreign legal entity in Bulgaria is regulated by the Law on Investment Promotion (IPA).
When establishing trade representation of foreign legal entities, they must register in the Bulgarian Chamber of Commerce and Industry (BCCI). For the establishment of foreign investments under Bulgarian law, in addition to five different companies listed above, the investor may choose one of the following corporate forms:
- OPEN a Branch office or
- OPEN a trade representation.
A commercial legal entitywhich has got the right to perform commercial activity under its national law, may register a branch in the Commercial Register. The branch is not considered as a separate legal entity. The branch is not required to have any paid up capital or separate governance structure. Its assets and liabilities are considered of the mother company.
Foreign persons authorized to do business under their national law may establish a representative offices in Bulgaria. A representative office is registered at the Bulgarian Chamber of Commerce. The office is not a separate legal entity and cannot carry on business activity. Thus, the purpose of the representative office is to perform activities such as promotions, exhibitions, demonstrations, training and advertising of products or services.
Registration of a foreign person’s representative office
the legal framework is the Investment Promotion Act, and the competent authority. The registration body is the Bulgarian Chamber of Commerce and Industry.
Procedure and documents required
- Official registration document of the foreign person issued by the relevant competent authority as per its national legislation.
- Official document regarding the persons managing and representing the foreign person.
- Resolution of the managing body of the foreign person for opening a representative office in Bulgaria.
- Special notarized original power of attorney issued by the person(s) representing the company, for the person authorised to register and manage the representative office in Bulgaria. It also is specifying the powers granted to the latter.
- Original specimen(s) of the signature(s) of the person(s) being representative(s) in Bulgaria, whether by virtue of law or by special authorisations, certified by a notary public.
- Document evidencing payment of the registration fee for the representative office.
Terms of registration
The registration terms are between 1 and 3 days (according to the declared wish and the fee paid).
Procedure for registration of a trade representation office
An applicant can be any resident with the right to conduct business under its national legislation. We can prepare for you all documents necessary for registration of a trade representation of foreign legal entity. Persons who are representatives of foreign commercial companies and have registered trade offices in BCCI can obtain a permit for continuous stay in the country. The term is one year (Art. 24, paragraph 1, p. 6 of the Law on Foreigners in the Republic of Bulgaria). The actual residence permit may be renewed on the same grounds after the expiry of the prescribed term.
Upon registration of a trade representation, you must have the funds from abroad for its maintenance. This applies also to any proceeds from SSI benefits for workers who are Bulgarian citizens. Since no representation carries on business, commercial offices are not required to file an annual tax return. For the same reason, they do not pay withholding taxes under the Corporate Income Tax Act.
Although not transact business, commercial offices are tax-liable for the social costs of staff employed under an employment contract and management. Regarding the law, transactions and payments made by residents in the country, carried out by commercial representation on his behalf or under the authority of the foreign entity, are considered as accomplished independent economic activity subject to taxation.On the grounds of Article 24, paragraph 1 of the Law on Promotion of Investment, trade represantation of foreign entities offceis are obligated to enter in the Commercial Register of the Chamber of Commerce.
When a foreign person can register as a trade representative in Bulgaria?
As lawyers in commercial matters, we will advise you that this happens when the company has got the right to conduct business, in accordance with the law of the country it had been established in.
Legal aspects in conducting business
Foreign person who has got trade representation in Bulgaria cannot carry out business on his/her behalf. This is because he/she is not a legal entity. Concluded with his/her brokerage transactions are conducted on behalf of the principal (non-resident).
Commercial representation must be recorded in the Unified Commercial Register of the Bulgarian Chamber of Commerce and Industry (BCCI), despite the fact that it is not a legal entity and has got no right to conduct business.
For more information about the types of legal services we offer, please contact us. As for as commercial ajnd compnay lawyer on +359 2/858 10 25, or by e-mail to: email@example.com.