Bulgaria to Reduce Redtape for Foreign Investors
The Bulgarian Government want to reduce the redtape foreign investors encounter when coming to set up companies in the country which is why it has delegated a working group to come up with solutions. The working group must present several legislative and administrative solutions to the barriers foreign businessmen have to face by the beginning of 2016.
What are the problems needing solutions?
Considering foreign enterprisers coming to Bulgaria have to face both administrative and legislative obstacles, the Government has delegated the working group to find solutions to the following problems:
- - the connection to the electricity, gas and water networks,
- - the application for construction permits,
- - the uncoordinated administrative proceedings,
- - the implementation of legislative changes,
- - the lack of an adequate road infrastructure,
- - improvement of vocational trainings for the Bulgarian workforce,
- - administrative procedures related to imports and exports,
- - tax payments,
- - the dispute resolution legislation,
- - the reformation of the Bulgarian judicial system.
Finding solutions to all these problems would come as a completion to the simplification of the regulations enabled at the beginning of the year, regulations that have helped Bulgarian companies to save 238.5 million BGN this year.
The draft bill on the Accountancy Act
As a plan of the anti-redtape measure, the Bulgarian Government has approved a draft Accountancy Act. The new legislation complies with the EU Directive on annual financial statements and reports for certain types of activities.
The Accountancy Act will help reducing the administrative load and allow Bulgarian companies to cut costs and to benefit from clearer accounting rules and proceedings. One of the measures refers to the elimination of the requirement to translate accounting documents into Bulgarian for small and medium sized companies.
Bulgarian companies operating in the oil, gas and mineral resources extraction will be required to disclose information about their projects and the taxes they pay. Special provisions are in place for companies exceeding a certain threshold. Small companies will most likely be exempt from appointing registered auditors and have their accounts audited.
For complete information about the new Accounting Act, you can contact our Bulgarian lawyers.