Transformation of a Bulgarian Limited Liability Company into a Joint Stock Company
Various reasons may lead you to the resolution that a going limited liability company in Bulgaria is necessary to be transformed into a joint-stock company. Improvement of the image of the company with regard to future financing/projects, provision of certain anonymity to the shareholders, bond issue, planned listing of the company on the Bulgarian stock exchange, etc., is just a short list of the likely reasons for a Bulgarian company to be transformed. Bulgarian Company Transformation procedure: Preparation of a notarized transformation plan by the director(s) of the company The main purpose of this plan is to outline the mechanism … Continue reading
Real Estate Purchase in Bulgaria – General Overview
This publication aims to provide a general overview of certain legal and administrative procedures and requirements arising in connection with a purchase of a real estate or land in Bulgaria. Form of the real estate purchase contract The purchase of a real estate in Bulgaria is made through a written contract concluded in a special form – a notarial act or deed. The notarial deed has to be signed before a notary officer acting in the court region where the property is located. Bulgarian Real Estate Register The notarial deed has to be registered with the Bulgarian Real Estate Register. … Continue reading
VAT Registration of Bulgarian Businesses
Bulgarian businesses are subject to VAT registration under specific rules. In this article you can find brief overview of the requirements for a VAT registration in Bulgaria as described by our VAT lawyers. Mandatory VAT Registration for Taxable Turnover Any company making supplies of goods or services taxable in Bulgaria, thus accumulating a taxable turnover of BGN 50 000 (app. EUR 25 000) or more in the last 12 months, is obligated to register for VAT purposes in Bulgaria and start charging Bulgarian VAT of 20% on its supplies. The taxable transactions generating VAT-able turnover include not only domestic supplies of goods … Continue reading
VAT Registration of Foreign Businesses in Bulgaria
In the era of globalization and fast digitalization of the economy businesses could become international in a matter of a few clicks of the mouse and gain access to overseas markets for their goods and services instantly. What companies often underestimate or even forget is that the sale of goods and provision of services to buyers in other countries often creates an obligation for VAT registration either in their own country of establishment or in the country of destination. In this regard, here are the most common cases, where businesses must register for VAT purposes in Bulgaria. Our Bulgarian lawyers … Continue reading
Fast Track Bulgarian Citizenship
In order to acquire a Bulgarian citizenship a foreigner must normally undergo a lengthy and cumbersome procedure and fulfill a number of requirements, including a mandatory period of residence in Bulgaria of approximately ten years, a good command of the Bulgarian language, renunciation of their current citizenship, etc. However, the amendments in the Bulgarian legislation in the past few years paved an easier and smoother path to the Bulgarian citizenship goal by introducing a fast-track Bulgarian citizenship procedure on the grounds of an investment made by the foreign individual in Bulgaria. This procedure is explored by our law firm and … Continue reading
Continuous Residence for Foreigners in Bulgaria
In accordance with the Bulgarian legislation the term “foreigner” includes every individual who is not a Bulgarian or an EU, EEA or a Swiss citizen. In order to be entitled to Bulgarian residence the foreigners in Bulgaria should obtain a residence permit depending on the period of their stay and their residence status. The continuous residence status entitles the foreign individual to reside in Bulgaria for for a maximum of one year and some of the most common grounds for obtaining such a status include: Grounds for Obtaining a Continuous Residence in Bulgaria Work under an Employment Agreement In order … Continue reading
How to Terminate an Employment Agreement when Closing Down an Enterprise
Nowadays, due to the continuing world economic crisis, unfortunately, the business phenomenon of “closing down an enterprise/a part of an enterprise” is a really common practice. This has been the case in Bulgaria too where companies have increasingly had to close down due to economic reasons. This inevitably imposes the need of termination and settlement of the employment relations between the company which is closing down and its employees. The Bulgarian labour legislation provides for some special rules with regard to company shutdowns which should be strictly observed when a Bulgarian employment agreement is terminated on the grounds of closing … Continue reading
Termination of Employment Agreement Due to Staff Reduction in Bulgaria
Staff reduction is one of the most common grounds used for termination of employment agreements in Bulgaria by the employers with a termination notice for convenience. The reason for this lies in the statutory right of the employer to organize the workflow and to determine the staff number and schedule at his own discretion. Prerequisite: Staff schedule adopted by the employer The presence of a staff schedule adopted by the employer is the corner-stone for the termination of employment agreements in Bulgaria due to staff reduction. The staff schedule represents a list of all job positions and number of people … Continue reading
Typographic Typefaces and Copyright Law
Background In typography a “typeface” is considered to be a set of glyphs representing individual letters, symbols, marks or punctuations. During the 19th century wood was used as a material for developing the so-called wood types. The 20th century allowed for the mechanization of typesetting. The first machine for typefaces was created by Ottmar Mergenthaler. Later on during the 1970s the machine typesetting was replaced by phototypesetting equipment which evolved in the current digital typesetting. The design of a typeface may require a large period of time. Examination and processing of different styles, say for example the basic- roman, italic, … Continue reading
Supplements to the Sale of Products in the Light of Unfair Competition Rules in Bulgaria
I. INSIDE AND OUTSIDE THE BULGARIAN LEGAL FRAMEWORK ON COMPETITION AND UNFAIR COMPETITION Legal framework Art. 36 of the Bulgarian Protection of Competition Act (PCA) is titled “unfair soliciting of clients”. It is a part of the unfair competition rules in Bulgarian law and contains four paragraphs providing for four different prohibitions. One of these prohibitions relates to supplements offered or given upon the sale of a product. Art. 36 (2) of the Bulgarian Protection of Competition Act (PCA) provides for the following prohibition: “The offering or giving of supplements for free or at a fictitious price of another good … Continue reading
