Legal division of property
When co-owners of common property fail to understand how to divide their property voluntarily and turn their ideal parts into real, they can turn to the court for legal division of property
This way of termination of the co-ownership is settled as a particularly indisputable production, which takes place in two phases .
Any joint proprietor may file a claim for a division, which is always subject to the district court of the place of inheritance (in the case of a division of inheritance) or the location of the property (in the case of a split of a real estate). Where incapacity or abstention is involved in the partition, prior permission of the District Court is required.
Division by Court settlement. In any case of a court case (prior to the entry into force of the court decision on the distribution of the property), the judicial separation may end with a court settlement. Legal division of property
The latter includes a contract between the parties for the distribution of properties and a definition by which the court approves the settlement if it does not contradict the requirements of the law and good morals.
A particular type of court settlement is the agreement of the spouses to divide their property upon divorce by mutual consent.
First stage of the legal division of property
In the first phase of the partition the issues between who will be partitioned, which properties and what is the part of each ofthe partitioners are clarified .
The action for partition is not extinguished by prescription.
The subject matter of a division may be all or part of the property, unless the law provides otherwise, or if it is incompatible with the nature or purpose of the property. If one of the co-owners does not take part in the division, it is entirely null and void.
The court decides by a decision on the admissibility of the division, which is subject to self-appeal, after its entry into force, a new hearing is scheduled and the division continues in its second phase.
At the request of some of the distributors, the court ruled on the issue of the temporary distribution of the use of the property until the end of the divestment and the sums that the users should pay to the others.
– Second phase of the judicial split of property
In the second phase of the division a real distribution of the shares admitted to partition is made between the parties that are recognized as co-owners and according to the established shares with the court decision of the first phase of the admission of the division.
Whenever possible, each of the partitioners should receive a real share of the objects subject to the divestment, as the units are equalized with money.
In the second phase of the division, if submitted, the following shall also be considered:
- the claims on the accounts of the distributors to recognize the costs he has incurred to increase the value of the property
- claims to increase the inheritance (inheritance split)
- as well as for the assignment of an indivisible residential property (in the case of a divorce of a matrimonial property community or an inheritance).
The casting may be done by drawing lots or by partitioning where the prerequisites provided for in law are available. Where a property is unalterable and can not be placed in one of the lots, the court shall order it to be put out for public sale.
This phase of the division ends with a court decision that has the power of a notary deed on shared real estate and is subject to entry in the Registry Office on the location of the property.
Where the co-owner to whom the property is awarded fails to pay the remaining monetary equation within six months, the award decision is invalidated by law and the property is exported to a public auction.
In this case, the property may not be sold for public sale and assigned to another co-owner if it has made a request for an assignment, the legal prerequisites are in place, and he immediately pays the price at which the property is valued at the split, less the value of his share in it.
When making the sale, the distributors take precedence over the third parties involved in the sale, each of them being able to buy the property at the highest bid.
If several distributors wish to redeem the property at the highest price offered at the first sale, a new sale is only made between these dividers, which is carried out under the general rules.
After that the actual distribution is executed. With the help of an expert the court divides the real estate by creating of separate shares for each co-owner after which each of them receives his property by lot.
Each party of the case for judicial division pays the outstanding court fees according to the market price of the received share. There are no obstacles for the parties to make an agreement about the way of termination of the co-ownership during the judicial division and to arrange a court settlement.
Legal documents & apostiles
Most transactions involving real estate in Bulgaria require a notary at the location of the property. A notary may be used for a range of other dealings: to certify your signature on documents (for instance on contracts); to help you execute a Power of Attorney; to deposit a will for safe-keeping; to transfer a car or other vehicle, etc.
Bulgarian notaries are a regulated profession separate to Bulgarian solicitors (who are referred to as Bulgarian advocates), and Bulgarian notaries have a very specialised role. They function as trusted parties and repositories for certain types of formal business.
Notaries cannot also be members of the Bulgarian lawyer association, and being highly-specialised cannot generally assist with preparing the documentation or advising on the transaction or legal business you may be planning even though they are uniquely placed to help you give it formal effect. We are in a position to help you with these.
Scope of Notary Related Services
We draft and finalise all types of notary deeds — e.g. for the transfer of real estate through sale and purchase contracts, through gifts, by inheritance, etc. We are also in a position to advise you when and how to use the notarial form of contract to your advantage.
Because of our extensive experience and network of contacts among Bulgarian notaries, where more than one is available, we are able to liaise with them for you and ensure that you obtain the best service.
Verification of documents with an apostilles
Sometimes, if a document is required to be presented in Bulgaria but was signed or otherwise prepared outside Bulgaria, the document would need to be:
(a) certified; and/or
Apostillisation is designed to replace the older procedure of legalisation, and is governed by an international convention (we refer to this as “the Apostille Convention”).
An even simpler procedure may apply where the document was prepared in one of a small number of countries enjoying agreements for special assistance in civil and judicial matters with Bulgaria: contact us to find out if your country of interest is one of these.
By far the most common situation involves documents which do require an apostille. Apostilled documents are immediately recognised in all other Apostille Convention states simply by having a special seal (‘apostille’) attached, and can be used (subject to a certified translation) in place of notarised documents. In property transactions, apostilles may be needed on Powers of Attorney and on several of the documents in the procedure for company registration (if a company is used).
We can help you obtain apostilles. You just need to visit, getting the draft of documents HM Government’s office for apostille processing. This allows us to prepare an apostille for you and deliver the certified POA, etc, to Bulgaria within several days of your instruction.
In EUROPEAN countries, we maintain relations locally to allow us to apostille your document for use in Bulgaria as fast as possible. Equally, we can procure legalisations, certified and sworn translations of documents and certifications of documents produced or executed in Bulgaria for use in other countries. Contact us further for this.
Drafting of Notarial Deeds
Using a lawyer rather than a notary to prepare a notarial deed is wise for most property buyers or sellers. It commonly reduces legal costs by 0.5% of the purchase or sale price of the property.
Together with our thorough experience investigating property title and conducting Bulgarian legal due diligence, this creates a one-stop shop – we deal with both the formalities and the substantive protection of investors’ interests.
Given that Bulgaria still has a somewhat decentralised system for recording title, it helps to smooth the process that we maintain regular relations with the competent governmental authorities.
Certification OF LEGAL DOCUMENTS
We certify documents from other jurisdictions for use in Bulgaria and vice versa. The ones most commonly used are: certification as true copies; for the authenticity of signatures on them; for use in legal proceedings; as witness statements; and as sworn statements and affidavits. We also prepare/help execute Powers of Attorney (POAs).
We offer procedural representation in Bulgaria to clients involved in international legal disputes in administrative, civil and penal matters.
If you need our legal assitance, do not hesitate to contact us immediately ! Our law firm D. Vladimirov & Partners is here for you to support your business to start well and seamlessly, so that you will be able to take advantage of all the opportunities and options our country is giving you.
Call us for more information on + 359 897 90 43 91 or send us your inquiry on firstname.lastname@example.org
Purchase property in Bulgaria
Our law office D.Vladimirov & Partners provide a professional legal services to purchase property in Bulgaria.
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.
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.
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
Based on the Costruction Law in Bulgaria the construction of a building could be divided in four major stages:
Getting of building permission – that document represents the official start of the building process. It is issued by the municipality council per location of the future building and after the architectural plan of the building has been given and approved. Every building without this document, even if finished, is illegal according to the Cosntruction Law and is to be demolished by the competent authorities.
Our Construction Law lawyers can you assist you the issuing of the Building Permission. Call: +359 (897) 90 43 91.
Issue of Certificate for rough construction, roof level, (Act 14) – this act certifies that certain stage of the construction process is reached. More specifically, the separate floors, staircases, outdoor and indoor walls, as well as the roof of the building are completed.
During the construction process the authorities issue an acceptance of the completed works by the investor and the supervisor
The completion of construction is certified by execution of a protocol (the so called “Act 15”) which is signed by the investor, the designer, the contractor and the supervisor. Act 15 is the document evidencing the delivery and acceptance of the completed works between the contractor and the investor. With it, they certify that the works have been executed in compliance with the approved design, the “as-built” drawings, the legal requirements for the construction works and the terms of the construction contract.
This Certificate called Act 15, the supervisor prepares a final report on the execution of the works. the inside doors are fixed at that stage, as well as the water pipes, electric wiring, central heating, the outdoor and indoor plastering is completed. The executor of the construction works hands over the building to the investor.
Issue of Certificate for Permission for usage (Act 16) – the building is completed in full at that stage. It is examined by government construction authorities if it corresponds to the initial architectural project about which the building permission is received and the other technical requirements and the construction legislation. The buyer could now inhabit the apartment or it could be rented.
These four stages are absolutely obligatory and a must according to the Bulgarian Construction Law and our company provides professional consulting services and negotiaton assistanceship bteween the foreign investors and the construction contractors.
OUR LEGAL PRACTICE – CONSTRUCTION PROCEDURES
Throughout the years of our practice in the fields of construction law we actively took part into the development of projects, linear and site infrastructure projects, gas stations, environmental and water projects, waste treatment facilities construction projects, etc.
We have experience at all stages of the construction process – from the proper development of a detailed zoning plan procedure, giving the frames of the future construction project, and providing due diligence support to dispute resolution through court and adjudication and less formal resolution procedures.
We are also able to provide legal advice upon the necessary demolition of equipment, whose operation is terminated, and the related consequent land restoration procedures.
We are used to work in each and every step of the construction process, including demolition of lawful buildings and the consequent waste management issues.
Our practice includes legal advice and drafting of
- various types of contracts needed for the organization and implementation of the construction process, i.e. design contracts,
- EPC contracts,
- design supervision contracts,
- construction supervision contracts.
We represent our clients in the negotiations on the specific terms and conditions, rights, obligations and responsibilities of the participants in the construction process.
Our team coordinates the necessary matters with civil engineers, designers and other experts who help us deliver first class and effective legal support.
LAST changes in the construction law in Bulgaria
Аfter it came into force last month, changes in the law on spatial planning, which set the functions of the Ministry of regional development and the new Ministry of investment design, the management decided to make new revisions in the law.
The legal act to be divided into two separate, one will govern the territory, and the other will affect the investment process in construction.
Before that, however, will be prepared a “map” of the problems in the legislation and the obstacles placed in front of the business. On this basis will be made and changes in legislation to alleviate regulatory regimes.
The deputy hopes that with the new changes in the law will stimulate investment in construction. In his words, the decline of investments is not due only to the crisis, and the conditions under which they are forced to operate at the moment investors – without predictability in terms of time for the realization of the projects, their price, as well as participants in the entire investment process.
Another major problem that hinders the investments, is the lack of general development plans of municipalities. A total of 262 municipalities, 220 do not have urban plans, which investors must demonstrate the compatibility of the projects, the territory.
Regardless of whether you are a contractor with a changed conditions claim, an owner of a real estate property on where a landslide occurred and caused damage to another property we can help and consult you.
If you have any Construction Law issues and you need an expert lawyer to protect your rights all you have to do is to contact our Bulgarian law office.
How to choose a legal advisor in Bulgaria ?
Bulgarian government launched a property advisor’s list in Bulgaria, which contains useful information about legal steps for purchasing, buying selling property in Bulgaria, property maintenance and all charges, fees and taxes involved. Every foreigner could get the most important information for property acquisitions from the website, which offers also a contact form to answer public inquiries of foreigners in Bulgaria. This guide is intended as practical advice to consider when buying property in Bulgaria.
Do your internal property research for Bulgarian market
Thorough area research and companies contracted (developers, estate agents and lawyers) is highly recommended. Examine the full range of properties, suggested by different agents, compare prices and ensure you are paying a fair price, discuss them with your trusted property lawyer in Bulgaria.
Extreme caution is advised. Do not rely on estate agents, promoters or lawyers, who advise you to cut corners in order to save time and/or money. Bulgarian property agents work much differently than property law in UK, therefore it is in your interest to make sure you are working with experienced and qualified professionals.
Should you choose to work with a Bulgarian estate agent, promoter, verify their qualifications and experience on the Bulgarian market in particular. Consult your expectations with your Bulgarian property lawyer or search online forums to verify other customers’ experience, use them to ask legal & technical questions.
Seek independent legal advice
Many property owners are now having legal trouble, since they failed to look for independent legal advice and allowed lawyers and translators, recommended by the estate agent or developer. Engage a property lawyer in Bulgaria, experienced in property transactions, who is not in any way related to other parties in the transaction.
If you are using a Bulgarian-based lawyer, make sure that lawyer has a registration with the Bulgarian Bar Association. Ask for the lawyer’s registration number and verify it using the Bar Association’s website or the Bulgarian Bar Registers.
If you are employing an Bulgarian property lawyer’s office, make sure that lawyer’s office is registered with the Bulgaria Law Society and specializes in International property transactions.
Verify the professional liability insurance of your Bulgarian property lawyer. There are no requirements for liability insurance for your Bulgarian property lawyer.
Avoid signing any papers or paying any fees before you’ve consulted with an independent legal professional advisor. Call us before you close the deal and save your money & time .
Condominium Ownership Management
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.
Document checklist for property sale in Bugaria
- Property title documents – certifying the title of the property.
Most frequent documents of ownership:
- Title Deed, registered with the Registry Agency – title deed for purchase and sale, title deed for donation, title deed for exchange, notarized statement of ascertainment;
- Deed with registration records;
- Sales Agreement executed under the Ordinance on State-Owned Properties;
- Sales Agreement, executed under the Municipal Property Act and the State-Owned Public or Municipal Real Estate Act. If executed after 1 June 1996, this Agreement has to be registered with the Registry Office.
- Property Tax Evaluation Certificate – issued by the local tax office at the property do
micile. The Property Tax Evaluation Certificate has to contain an address identical to the address of the property as per the title deed, or in case of discrepancy, Certificate of Identity of Addresses has to be issued. The Property Tax Evaluation Certificate shall list all of property owners.
Property co-owners may not have any outstanding debts concerning the property (this means paying property tax and waste discharge fees), which shall be indicated in the Property Tax Evaluation Certificate.
- Certificate of Marital Status of the seller(s), indicating the marital status of all owners as of the date of acquisition of the property. This certificate shall be issued by the Uniform System for Civil Registration and Administrative Services to Population department in the district of domicile of the owner.
- Marriage Certificate of the seller, if applicable.
- If the property is not acquired as marital property, it shall not be considered matrimonial property community (MPC); however, in case the address of the property is the address of registration of one of the spouses, a statement has to be filed, under article 26 of the Family Code, which shall evidence the respective spouse agrees to with the sale. This shall also apply for property acquired by inheritance, donation, and in general cases other than MPC.
- If the property has any real rights registered, in order to execute the sale transaction, the user shall abandon all the real rights, established in their favour, by filing a waiver of the right to use the property. The waiver has to be signed in the presence of a Notary Public and shall be registered with the Notary Public’s file. In case the used is deceased, an excerpt of the Death Certificate shall be submitted.
- In case the property is subject to partition – the document in question (contract, ruling), registered with the Registry Agency.
- Plan of the plot, in case of transfer of land (land plot, yard or part of yard, where the property/apartment is built). It shall be issued by the technical service in the district of location of the property, and shall have a term of validity for 6 months.
- In case the property has been received as inheritance – Certificate of Inheritance, Certificate of Death of the predecessor, Last Will and Testament.
- In case the seller is divorced, the court ruling dissolving the marriage in divorce shall be presented.
- Specific cases require different documents, which follow the property history and proves the title of ownership.
- Certificate of Burdens for the property – to be issued by the Registry Agency, and including any and all ownership documents – from the date of the first Title Deed to the date of the last Title Deed, and in case of inheritance – a Certificate of Inheritance. In case the property includes land or shares of land, a plan of the property shall be enclosed as well.
- In case the seller is unable to perform the formalities for a transaction personally, the seller shall have the lawful obligation to appoint another person to represent the Seller with a Power of Attorney. This Power of Attorney shall be notarized, and both the signatures affixed and the content of this Power of Attorney shall be certified. A declaration under article 25, paragraph 7 of the Notaries and Notary Practices Acts (NNPA) and a declaration under article 264, paragraph 1 of the Taxation and Social Security Code of Procedure (TSCCP) shall be issued.
- An identity document, which confirms the identity of both the buyer and the seller (identity cards, certificates of good standing, and a decision of the competent body – in case the party under the transaction is a legal entity).
- In case the transaction refers to transferring developed buildings – the respective documents issued by the builder/investor – building permits, architectural design and distribution of land, permit to use – Act Form 16, et al.
- Other documents, according to the specifics of the transaction. Due to the diversity of documents possible, we recommend that the documents under this transaction be checked by a lawyer.
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.
- 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.
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 email@example.com or call us now on + 359 897 90 43 91
FOREX LICENSE IN BULGARIA
Every company, who wants to operate and get licensed on the Bulgarian FX market, needs to be registered as an investment intermediary in Bulgaria and become licensed by the Bulgarian Financial Supervision Commission. This statutory body operates under the umbrella of the European MiFID.
One of this rules are concerning the capital requirements of the registered companies.
The required basic capital to get a FX license in Bulgaria is BGN about 250,000 (about 132,000 EUR) for the simple particular brokerage license, payable as follows: 25% must be deposited prior to filing of the application form and 75% must be paid within 14 days of approval.
The full FX license, receive a companies & this allows operations on Bulgarian FX market, the full license has a capital requirement of BGN 1,500,000 (000 (about 775,000 EUR). An additional payment of 1% of the capital must be made to a further guaranteed fund.
- The FX broker company need to have at least two executive directors, who possess proper higher education in a field related to finance or economics, proven experience in the financial field, a clear criminal record, and they cannot be related to one another (relatives or partners in life or in another company).The both directors may be coming from foreign countries, not only local specialist could be accepted.
- The FX Company must have the necessary appropriate software, equipment and technology in order to successfully operate and provide service to customers, or otherwise contract such infrastructure with third party providers. The new FX company must provide the Bulgarian authority with a detailed and solid business plan including income forecast, expected P&L, etc.
- The FX Company must have a physical space in Bulgaria to function as an office.
- The process of obtaining a license through the FSC takes about 6-7 months from the moment the complete application is filed.
This protects the interest of investors by ensuring the new registered FX company compliance of all legal requirements, but also ensuring the operators’ financial stability and that the information they provide to consumers is accurate and reliable.
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