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Getting enforcement order 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 movable property. Its object is obtaining of a writ of execution without a legal trial. More about the order for payment in Bulgaria can be read here.Bulgarian company formationm Register company Bulgaria, Company set up.

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, then, when calculating the costs for the trial, only the state fees paid in the order for payment procedure shall be taken into consideration, whereas the attorney fees shall not be accounted for.

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……

Under the current Civic code, and in particular the provisions of Art. 410 and Art. 417, anyone can ask the district court to issue an enforcement order. 

The order of execution is a valid ground for issuing a writ of execution. In this sense, the enforcement order replaces the judgment as such. The purpose of this commandment is a quick, surprising and more economical process. An order for enforcement may require any creditor who has a debited claim in the form of “sums of money or substitute goods when the claim is brought before the district court” (Article 410 (1) (1) of the CCP). 

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 District Court examines the application by verifying its regularity and the admissibility of the proceedings. 

The applicant must also reflect the basis on which he refers for his affection. 

This practice may be a contract or other documents showing that the claimant has one claim from a creditor. If all this is fulfilled, the court shall issue the order within three days, and then send it to the parties. 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. If, however, it is not challenged by the debtor within this time limit, 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.

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. According to the Bulgarian laws, trade representation can perform non-profit activities, advertising of goods and services, and more.

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:

  • Branch office or 
  • 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.Registration company

Representative Office

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.

Requirements:

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: info@lawyer-bulgaria.bg.