Bulgaria company and corporate law

The Bulgarian Commercial Act regulates the Bulgarian corporate law, among other things. 

Bulgarian corporate law is described in Art. 63, where it defines the specifics of the association of two or more persons for commercial transactions. 

According to the Bulgarian corporate law companies are considered legal entities due to their form of incorporation, and there are different types. 

–        the general partnership, 

–        the limited partnership, 

–        the limited liability company, 

–        the joint stock company,

–        and the partnership is limited by shares.

Anyone considering company registration Bulgaria must keep in mind the accounting responsibilities, and no one better to take care of the corporation’s bookkeeping and tax reports, as well as advise you and your business on the best and most successful practices, than Accountancy Bulgaria, a company with decades of experience, excellent customer service and a fantastic reputation offering tailored solutions to companies and businesses. 

Types of companies according to the Bulgarian corporate law

The Commercial Act Bulgaria determines different types of companies depending on the participation of the members of the company. 

On one side, we have capital companies that are the following: the limited liability company, the joint stock company and the partnership limited by shares. 

On the other side, we find general partnerships and limited partnerships. The main difference between these types of companies is the liability of the members forming the corporation. In the first type, members are not liable, meaning they participate in the company through their capital contribution, and their responsibility is limited to that. But, in the second group, the partners are indeed liable for the company’s obligations with their own assets.

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Bulgaria company law: company incorporation

What does the Bulgaria company law say about incorporating a company?

As defined in the Art. 65 of the Bulgarian Commercial Act, Bulgarian citizens and also foreign natural or legal persons may start a company in Bulgaria. Depending on the type of company, the number of member may vary, the necessary initial capital, as well as their liability. 

Additionally, according to the Art. 67 of the Commercial Act, a company is incorporated on the date of registration in the commercial register in Bulgaria. In that act, the company becomes an entity.

Other regulations of the Bulgaria corporate law

The Bulgaria corporate law also regulates other aspects of the definition, incorporation, and operation of companies in Bulgaria.

Among said regulations, there are the rights of company members and partners, and how the company capital is administered and protected. For example, the Commercial Act defines that members expected to make capital contributions are supposed to do so before the registration of the company. Contributions in kind are also accepted as long as a monetary value is given to them to define the capital of the company.

The Bulgaria corporate law also regulates company management and directorial roles, the minimum number of board meetings a year, and how company decisions are made.

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Why does a corporation need an accounting company?

There are several reasons why a company definitely needs an accountant in Bulgaria who is reliable and can help with the financial responsibilities of every corporation. 

Accountancy Bulgaria can help with the following:

–        Maintain your bookkeeping up to date and standards.

–        Do and present tax reports, and deal with audits, allowing members to use their time to focus on growing their businesses.

–        Manage VAT refunds.

–        Effectively deal with multilingual documents and clients.

–        Tax advisory and dealing with tax reports.

Conclusion

The Bulgarian corporate law is defined under the Commercial Act. 

All aspects of company incorporation and the management of said companies are defined in the articles of this law. 

Having an accounting company like Accountancy Bulgaria is a must for effective management of the financial responsibilities of a company.