Notes on what Joint-Stock incorporation Bulgaria requires

Incorporation Bulgaria – what are the first steps and preconditions? Though it might represent a certain age of the human history in English speech. .In Bulgaria the AD abbreviation stands for entirely different meaning. “Anno Domini” in the West, big business in the center of the Balkans behind those two letters. The short form of that type of incorporation Bulgaria employs for a Joint-Stock Company. All leading firms in the country in means of annual turnover, scale of activity, profit, work labor force amount are registered that way.

Since you read such article, you probably know it’s about a corporation of stockholders. One that cannot be formed without a constituent assembly. Participants in such meeting could be both individuals and representatives of legal entities. All have to agree about the size of each share, but that’s not the sole task of the assembly. They create and vote for the article of association – it’s like the constitution of incorporation Bulgaria requires for every AD in the land. Managing board needs to be elected too. Temporary certificates are issued to all shareholders and later they receive the actual shares after the Joint-Stock company is formed and begin to operate.

State’s law has the mark of 50 thousand leva (little above 25 thousand Euro) as a minimum initial capital threshold to register a firm of that type. And there is an option for such incorporation Bulgaria allows – the initial capital has to be set but only a part of it (at least a quarter of the sum) is mandatory to be deposited from the start, it’s not a problem for the rest to be added soon after that. It doesn’t have to be cash too – so-called non-monetary contribution also has a value.

As the headline tells you, this article draws just a few strokes of picture – a Joint-Stock company formation is a complex process. Founders often need support for that type of incorporation Bulgaria allows as a legal form and at BulgarianLaw.co we are able to provide such crucial help.