Corporation Bulgaria

What happens in Vegas, stays in Vegas! Whatever company is formed in Bulgaria, is considered Bulgarian by law regardless of the origin of its founders. This meaning is provided by the law in the country which determines any corporation as Bulgarian legal person even if the individuals who form it are foreign citizens. Thus so every business entity is subject of the national legislation and has to perform its activity according to the norms permitted by the government.

But being a Bulgarian company does not set any limit to the size of the share that belongs to foreign individuals. Whole 100 percent could be owned by a person or persons with nationality different than Bulgarian and that business entity has the same rights and obligations as any corporation formed by local persons only.

Joint stock companies have to face certain requirements to be created, exist and operate in the country. The minimum initial capital for such corporation to be listed at Trade Register amounts to 50 000 BGN (around 25 500 Euros). There are legally established restrictions on the transfer of shares. A worldwide principal is available in Bulgaria – specific for the joint stock company is the lack of personal involvement of the shareholders in the company’s activity.

Corporate structure of such company has strictly defined hierarchy. Joint-stock company has to convene General meeting of shareholders. Participants in this assembly elect and approve Board of Directors and Supervisory Board in case of a two-tier management system. Any public company is obliged to post the minutes from the General meeting online for a period no shorter than one year.

So incorporation of joint-stock company is not some simple task and legal service for formation of such entity is inevitable.

The amount and complexity of documents that has to be prepared is a task better to be entrusted to experienced professionals. It is not a Limited Liability Company that sometimes cab be formed and entered at Trade Register without the help of experts. Forming corporation in Bulgaria gives a promise of success if it is supported by lawyers and advisors who know what has to be done for a proper launch.