At present, Bulgarian
law states that Foreign Nationals can physically own buildings or apartments
BUT are unable to own land within the territory of Bulgaria,
even if the land comes with a house, instead they have to establish a Bulgarian
limited company, this may change in years to come, but for now we all have to
do it. The company owns the land and you own the company. This is perfectly
safe and completely normal. It is not difficult and can actually be a benefit.
The company is a legal Bulgarian entity with the same legal rights as any. it
can be owned by one person (sole owner limited company) or by as many
shareholders as is required (family members maybe). Each shareholder will own
shares relative to their financial investment.
The founding capital (will show the court that the company has been established with capital)
To establish the company, a
series of documents have to be submitted to the court. One of which is a
special bank statement for the founding capital. The founding capital has been
set by the state at 5,000 BGN Leva, which has to be paid by each shareholder,
the amount will be divided by the number of shareholders and by the
number of shares each will hold. For example: if there are 4 shareholders
who are willing to contribute the same amount of money to the company then each
will pay 1,250 BGN. Once the company has been established the 5,000 BGN
can be withdrawn from the raising account and transferred into a current
business account. The funds and the new current business account can then be
used for the company activities. Each shareholder will be liable for the companys
obligations to the value of his/ her share in the companies registered capital.
Articles of Incorporation
The shareholders conduct
preliminary discussions on the commercial activities they intend to engage in.
It is possible to add in activities which you may want to do in the future, it
is not important if you do not actually do the activities but there could be a
problem if you intent to do something that are not listed in your commercial
activities (please contact us for further information if this is unclear).
Articles of Incorporation are prepared and signed by all of the shareholders.
The company legally exists
from the moment it has been added to the Commercial register of the district
court where the company will be based. The entry is made upon the issue of a
district court decision for the incorporation.
The following documents are
required:
- Articles of
incorporation.
-
Memorandum for the
appointment of director/ directors.
-
Founding Capital
Statement.
-
Management contract.
-
Specimen signatures.
-
Rental Agreement. (This
will show that the company has a legitimate address to trade from)
-
Minutes from the general
meeting.
-
Any Power of Attorneys
which may have been issued READ POWER OF ATTORNEY
-
The Bulgarian State
Gazette is the official news paper of the Bulgarian state, for a new law to
take effect; Bulgarian legislation is published within it. The company entry in
the commercial register will be published there, it announces to the general
public the act of formation of your company.
Finally,
your company will need to register immediately with the National Tax Register
Authority
Now that your new company is ready, you will need the assistance of an accountant.
READ ACCOUNTANCY
♦Administrative costs applicable.
