SUBMITTING ANNUAL BALANCE & FINANCIAL STATEMENT OF BULGARIAN COMPANIES
Every year the companies must publish annual financial statements for the past year, as the deadline for sole proprietors (which are subject to statutory audit) is 31st May, for limited liability companies (LLC) – by 30th June, and for all other entities– by 31st July.
Bulgarian companies must prepare their annual financial statements (referred as balance sheets) on the basis of International Accounting Standards (IAS), or on the basis of Bulgarian Accounting Standards for Small and Medium Enterprises (SMEs).Bulgarian companies, which do not exceed two of the following criteria during the previous two years :
Net asset value per December 31, less than BGN 8,000,000 ;
Annual turnover of less than BGN 15 million ;
Average number of employees less than 250.
choose between Bulgarian Accounting Standards for Small and Medium Enterprises or the International Accounting Standards (IAS ) to prepare and submit their annual financial statements. The companies from the public sectors, which are using public financial savings or funds , als o Bulgarian companies, which are issue a bonds or financial institutions are obliged to prepare and submit their annual financial statements on the basis of International Accounting (IAS ) Standards .
Companies in liquidation or bankruptcy prepare and present for their annual financial statements on the basis of Bulgarian Accounting Standards for Small and Medium Enterprises.
Bulgarian financial statements include:
Balance sheet, the income statement, the cash flow sheet, the capital sheet, Annexes
The information presented in the annual financial statements must also meet the following requirements:
Companies which financial statements are subject to mandatory verification by independent auditors & accountancy needs to prepare an annual activity report. Once approved by the general meeting of shareholders, the Bulgarian companies must publish their annual accounts and annual financial statements under the following conditions:
Submission in the Bulgarian Trade Register before June 30 of the following year for Bulgarian regstered companies incorporated in the form of limited liability company (LLC) ;
Submission in Bulgarian Trade Register before 31 July of the following year for other legal forms (SA, etc.).
The managers or legal directors of the Bulgarian companies are responsible for the drafting, preparation, content and the publication of annual financial reports & activity statements of their Bulgarian companies within the time prescribed by law reports.
Should you need more information concerning this matters, send us a legal inquiry on firstname.lastname@example.org or call us now on + 359 897 90 43 91
If you are a seller in a real estate transaction, our law firm can offer full legal services, including the following:
– we prepare a project and coordinate amendments to the text of a preliminary contract for sale and purchase of real estate;
– we inspect, advise and assist you in obtaining the necessary documents for the sale, including, but not limited to:
a certificate of tax assessment of the property;
certificate of marital status;
certificate of marital regime;
certificate of presence/absence of material encumbrances;
previous property acts;
cadastral scheme of the property by the GCCA, and others;
Filing a corrective declaration under Article 14 of the LTFA;
– we perform a check on the buyer – their representative power, availability of information about court cases against them, and other relevant information;
– we prepare and make amendments (if needed) to the draft title deed, assist our clients before the notary public and accompany the client on the day of the transaction;
– we assist our clients in obtaining possession of the property, including the preparation of a acceptance and delivery certificate, if such is needed and agreed;
– we coordinate the communication with the lending bank, if the buyer is going to use a loan for the purchase, we monitor the issuance of a letter of engagement;
– we cooperate, if the sale price will be paid through a trust account contract/escrow account;
In addition, although we are not financial advisers, we can provide you with guidance on the approximate real market price of the property, which you can receive from eventual sale.
We can represent you as a client in property issue throughout the whole process
If necessary, we can sign the new notarial deed on your behalf as seller and deliver possession of the property to your buyer.
We also offer legal assistance in solving problems related to the Cadaster and Property Register Act, problems with property boundaries, unresolved regulatory bills, precise registration of apartments, houses and plots in the schemes issued by GCCA, as well as with the preparation and supply of all the necessary documentation.
Should you have any questions or need information on the above legal services, please
But the Bulgarian property lawyer is the attorney who will be useful in practically all cases, including any legal stops in Bulgaria, contract negotiations and mortgages.
Some of the purchase contracts are standardized, others have ambiguous terms
In that case you need a property lawyer who is profound into the Bulgarian property legislation.
Our legal services include legal activities in following activities like:
Legal representation during sale and purchase of real property;
Provision of any documents required for the purposes of legally confirming property status;
Obtaining a certificate for entries, recordations or deletions;
Performing checks within the archive records at the Registry Agency
Legal check for the choosen property – a legal entity and clarifying circumstances that are vital for the transfer of the real property,
lawsuits against the seller, which may affect the property.
Drafting, preparation, signing, termination, and rescission of contracts for purchase and sale of real estate.
Preparation of notary notices for cancellation of preliminary contract for the sale of real estate.
Full legal assistance and representation in court during court cases for a refund of paid deposit as per a signed preliminary contract.
Legal representation by real property lawyer during legal proceedings under Article 19 of Contracts and Obligations Act for the announcement of a preliminary contract as final.
Full representation of a seller or a buyer during the signing of a title deed and the related procedure of declaring the property at the local municipality.
Legal representation during court proceedings for property aqusition.
Valuation of real estate properties by a competent licensed appraiser and obtaining the relevant valuation within a period of up to few days.
Our work for investor clients is at the heart of our real estate lawyers group.
We are committed to all aspects of the real estate law and we are able to service all requirements of our real estate investor clients. Real estates lawyer Bulgaria
Our experience includes not only the preparation of straightforward sales, purchases and leases but also the preparation of most complex deals
Legal advice on the structuring and financing of such deals.
Our real estate lawyers work in close cooperation with our tax law experts in order to provide you with a working solution that is to meet all your requirements and to cover all aspects of your deal.
In particular, our work in this area includes:
Preparation of due diligence reports related to prospective purchases or leases of real estates;
Preparation of sale agreements;
Preparation of short or long term lease agreements;
Advice on the organization of the design and construction processes;
Preparation of construction agreements;
Preparation of design agreements;
Review and preparation of agreements with supervision companies;
Organization and preparation of deals that require an escrow payment;
Provision of tax advice on all aspects of the real estate deals.
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.
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.
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).
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.
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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.
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
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Our law office, acting as company lawyers In Bulgaria, works with many legal issues & problems. However, dissolving or liquidation a companies may be a voluntary procedure. Sometimes the decision has to be adopted by the company’s shareholders, or a company might merge with another legal entity.
The company lawyers in Bulgaria are the specialist for dissolving or liquidating a company in Bulgaria which may also be mandatory – may be the company experiences bankruptcy procedures, or a decision may be adopted by the Bulgarian court. We, as company lawyers in Bulgaria, do work also from the whole legal process of setting up a company in Bulgaria and including it in the Commercial Act of the Republic of Bulgaria. Completing of the winding up process requires undertaking certain actions and the owners may aski for the services of a law office in Bulgaria to assist with the formalities. Regardless of the reasons which have resulted in liquidation of companies, our team of company lawyers in Bulgaria will be happy to provide assistance and legal counsels for the full duration of the procedure.
Legal steps required for dissolution and liquidation of companies in Bulgaria
The whole procedure for liquidation of a company in Bulgaria starts with accepting a decision by the shareholders of the company, or a ruling by a competent Bulgarian court. We, having a professional company lawyer in Bulgaria, move the procedure and prepare the documents on the first stage which consists the full suspension of the company operations – the stage of dissolving the company. Dissolving & Liquidation of company in Bulgaria, as a first phase is required because the company has to terminate any and all businesses and procedures before its assets are transferred to any other party.
The company liquidation in Bulgaria shall be started and dissolved with a decision of the shareholders. The legal decision for a company liquidation in Bulgaria is adopted with a majority of the shareholders (at least 75% of the company equity). Following the company decisions, the manager of the company has to notify the National Revenue Agency of this company decisions and of the start of the liquidation procedures in a Trade & Commercial Register.
Despite the fact that the company still exists for the duration of the liquidation procedure, it may not perform any business activity. Following the conclusion of the procedure, the company will no longer exist and shall be deleted from the Commercial Register of the Republic of Bulgaria.
The most relevant step in the liquidation procedure in Bulgaria, according to our Bulgarian company lawyers, is settling any and all payables and debts of the company to other parties. The assets of the company have to be divided amongst all company creditors and any remaining assets of the company shall be divided between all shareholders. This is an out-of-court procedure involving all partners in the company and all creditors.
liquidation of companies
Insolvency procedure against the company
An insolvency procedure against the company may be initiated by any other party during the liquidation procedure, if the insolvency procedure in Bulgaria has been complied with. After this procedure is finalized, a liquidator shall be appointed and the role of the liquidator is to terminate the company. The liquidator may be a former manager of the company, or any other person appointed by the Commercial Register of the Republic of Bulgaria. Our Bulgarian company lawyers are ready to prepare all the documents necessary and to submit them in the court, if the liquidation procedure is required.
The liquidator shall have the right to undertake any and all actions necessary to complete the liquidation and shall represent the company before the competent authorities. The responsibilities of the liquidator shall include, among other things:
– terminating any current deals;
– collecting debts;
– conversion of any assets into cash-at-hand;
– repaying all loans to creditors;
– preparing a balance sheet;
– terminating the company’s accounts.
Any and all new transactions during this period will only take place for converting the assets into money, or concluding any other actions related to the liquidation. A liquidation certificates shall be issued by the National Revenue Agency of the Republic of Bulgaria. This certificate of liquidation, along with the shareholder’s decision to liquidate the company, the appointment of the liquidator and a report, which details the manner for the performance of the liquidation procedure, are to be submitted to the Commercial Register. Our Bulgarian company lawyers can help you with submitting any and all of the legal documents necessary.
Finalizing the company liquidation procedure in Bulgaria
The liquidator of the company has to ensure that all creditors of the company will file their claims. The existing claims may be submitted maximum within six months after the delivery of the liquidation announcement to the creditors. After all liabilities have been settled and all assets of the company have been divided, the liquidator shall take any and all measures necessary for deleting the company from the Commercial Register in the Republic of Bulgaria.
Liquidation of a company in Bulgaria will take not more than six months, also by existing claims. Our Bulgarian company lawyer can prepare all documents necessary and suggest you a legal assistance for dissolving and liquidating the company. For more information, please feel free to contact our office on + 359 2 858 10 25 or send us an e-mail to email@example.com
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Any more questions? Call us on + 359 897 90 43 91 !
We will respond as soon as possible, but no later than one business day. International Law Office D. Vladimirov & Partners will provide you with protection of your interests and adequate legal assistance.
International Law Office D.Vladimirov & Partners | Lawyers | Address: 6 Alexander Zhendov Street, 1113 Sofia, Bulgaria Mobile Phone: +359 897 90 43 91 | Fax: +359 2 858 10 25 | Email: firstname.lastname@example.org
The Law Firm represents clients throughout Bulgaria, including the cities of Sofia, Plovdiv, Varna, Burgas, Rousse, Stara Zagora, Pleven, Yablanitsa and etc.
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