Becoming Director of Bulgaria Company

At the moment Bulgarian law does not allow foreigners to own land. However, this is going to change in the next couple of years alongside with the through overhaul of the judicial system preceding the country's accession to the EU scheduled for 2007.

Bulgarian Company Registration - why you need?

For the time being, for any Bulgarian property purchase it is necessary to register a limited company that can own land. Doing this, you will register yourself as a company director. Forming a limited company, through a solicitor is straightforward, taking about a month and costing about  £ 600

Who and How can register a Bulgarian limited liability company (Ltd.)?

According to the Commercial Law foreigner citizens can form Limited Liabilities Company (LTD) by its two variants -EOOD - where the founder is one or OOD, where the founder is more then one person. These could be only foreigners or foreigners and Bulgarian citizens.

The person/persons (foreign or local) will be liable for the company's obligations to the value of his/hers share in the company's registered capital. Once you have chosen which property to buy, you will instruct a Preliminary Contract to be drawn up and pay a 10% deposit. Then the lawyer checks Title. You also set up a company which requires opening a bank account (small fee applies) with the deposit of 5000 BG Lev. We can arrange for this.

The Bulgarian company exists from the moment it is added to the Commercial Register of the district of where the company will be based. The entry is made upon issue of a district court decision for the incorporation. The following documents must be available at the time of the submission of registration application to the district court.

1. Articles of incorporation
2. Memorandum for appointment of Director/ Directors
3. Proof that each shareholder has paid at least one third of its interest, but not less than 10 leva
4. Proof that at least 70 per cent of the registered capital has been paid.

All Bulgarian legislation is published in the State Gazette - the official paper of Bulgarian State. So the publication of the company entry in the Commercial Register does not complete your Bulgaria company registration, it announces to the general public the act of formation.

The process of registration a company in Bulgaria can take between few days and few weeks.

Finally, the new Bulgarian company need to register immediately with the National Tax Register Authority.
Once the entire authorized /share/ capital has been paid up these funds can be accessed and withdrawn.

You can have confidence in the legal process. It's normal for the Lawyer to represent both sides, as in France, for example, and the lawyer is legally bound to be diligent. If there is the slightest irregularity in a property's paperwork, you will be advised accordingly. And it's worth nothing that owning through a Bulgarian limited liability company affords excellent legal protection.

to the top