Mixed types of Corporations in Bulgaria

Company with mixed characteristics in their nature are called corporations and they are registered under the Commerce Act in Bulgaria. In business, the legal process of the establishment of a corporation or company with corporate character is called incorporation. In Bulgaria corporations could be registered from Bulgarian legal or natural persons and foreign ones. In a Bulgarian company, which is Limited Liability Company (LLC, in Bulgarian “OOD”), Joint-Stock Company (JSC, in Bulgarian “AD”) or Limited partnerships (LP, in Bulgarian “KD”), as a corporate form, they may also have a foreign participation on its establishment.

By law, the registration of corporations with international participation is not so different from Bulgarian corporations without foreign participation, but they have specific characteristics. Initially a registration requires the necessary registration papers, which is better to be prepared by experienced lawyers, who are fully aware of the procedure of corporation registration. It can be done electronically or in a standard way by paper, which is entirely the choice of your representative.

If the future partner registered as a legal or natural entity in the country of the partner’s residence is very important.

This is significant because the legal framework requires different things from both types of international participants in the newly established corporation. If a shareholder or participant in the share capital of the company is a natural entity, who is a resident of another country, in that case it does not require additional documentation. It is required only the physical presence of your partner. But if you partner is a legal entity, then it is required a document of the current status of the foreign company from the states of residence and registration of the company. It is mandatory that this document to be translated and legalized by a certified translator.

When you become a partner with a person who is not a Bulgarian resident or company which is registered in another country then the whole process is accompanied by a translator who knows the written and spoken language of the foreign entity. According the Bulgarian law all documents are formed and signed in the presence of your partner. Translation of all documentation is also required. If you want that your foreign partner to be the manager of the corporation, then it is necessary to be presented a notarized signature in the presence of an interpreter. The whole process has its specific steps, so for the establishment and registration of corporations of mixed type in Bulgaria it is very important to rely on legal firm experienced in commercial law. So your business will start in the right way.