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Company Re-registration in Bulgaria-Time is Running Out

If your Bulgarian limited liability company was registered before 01.01. 2008 at a district court you are obliged to register it again according to the procedure as per the Law of the Commercial Register.

The reason for the amendment is to separate the Commercial Register from the Juridical system, which will contribute both to the reform in the Juridical system and to the simplifying of the processes that a businessman has to go through because of his/her company- from its registration to its liquidation.

 

The companies, registered before 01.01.2008 at district courts, must be re-registered within a 3 year term, considered from 31.12.2007.

The deadline of 31.12.2010 is coming soon!

The re-registration includes entering the company’s name and its basic details in the Commercial Register to the Registry Agency.

The documents needed for re-registration are:
- Application for re-registration
- Certificate for current state
- Application form
- Application form for registering of new circumstances

If you decide to use the services of a consultancy agency in Bulgaria you would need to concede to it your BULSTAT card, Contract of association and the company seal.

After 31.12.2010 the district courts, at which the companies have been registered before 01.01.2008, will issue certificates for the non re-registered companies and will send them to the Registry Agency, which will cease their trading; appoint a liquidator; determine the liquidator’s remuneration and a term for the liquidation process. All the costs in relation to the liquidation process will be at the expense of the company- meaning the salary of the liquidator for the whole period of liquidation and all the taxes to the state, which amounts to almost E500.

The bigger problem comes when the company is the legal owner of property in Bulgaria. If the company is liquidated, the fate of the property is still unknown, but most likely the property will be used as compensation for the Agency’s expenses on liquidation. The members of the managing body will be completely responsible  for the obligations of the company in relation to the liquidation process.

The whole process of re-registration takes no more than 4 weeks, it is inexpensive and is not very complicated. The complications come if you delay it too much or just try to skip it.


Written by Home Point BG