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Company Re-registration Deadline Granted One Year Extension

The Bulgarian Government has extended the deadline for companies in the country to re-register into the national registry.

This new move will allow companies who have still not re-registered into the commercial registry another full year to comply.This takes the new deadline to 31st December 2011.

PENDING ISSUES:

According to the Act on the Commercial Registry which is currently in force (as of 28.12.2010), if a company owner fails to re-register it, the Registry Agency will re-register it ex-officio, after which it will initiate a liquidation procedure at the expense of the company. In 2009 some rules on the procedure for assigning a liquidator were adopted in the Ordinance on the Keeping, Storage and Access to the Commercial Registry and yet it is still unclear even for the professionals, how this official liquidation will be conducted and mainly - how long and expensive it will be.
In addition to this at the end of this year it turned out that a very small number of companies have re-registered during the 3-year period and the Registry Agency may be facing the problem of dealing predominantly with official re-registrations and liquidations of the remaining 3 million companies which will have missed the term. These two main and closely related issues - the lousy activity of companies and the unclear and incomplete set of rules for the official liquidation have motivated the government to introduce a draft Act on the Amendment of the Act on the Commercial Registry.