Buying Shares in a Bulgarian Company
Buying Shares in a Bulgarian CompanyUpdated on Saturday 29th October 2016
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Companies in Bulgaria can sell shares that allow the buyer to have shareholder rights, thus creating a legal relationship between the individual and the corporation.
The types of shares, the transfer, and their purchase are all issues established by law and included in the Bulgarian Commercial Act.
Our team of lawyers in Bulgaria specializes in commercial and company formation issues and can offer you adequate advice and counseling regarding the sale, transfer or purchase of shares in a Bulgarian company.
Companies and share ownership in Bulgaria
Not all types of companies allow for a public share purchase or transfer. The process is possible for the joint stock company, the most popular form of capital company in Bulgaria. Unlike the private limited company, the joint-stock may have its capital divided into shares of an equal value. Individuals and even other companies may hold a number of shares in this type of company.
According to law, Bulgarian joint-stock companies cannot issue shares that have various nominal values. However, a share can be jointly owned and in this case, the shareholders may appoint a proxy to handle their shareholder rights and obligations.
Company mergers and acquisitions in Bulgaria can be performed through a stock purchase. Foreign companies can buy stock in existing Bulgarian companies. This is also applicable for takeovers of public companies, however, this segment is subject to additional regulations. Our attorneys in Bulgaria can give you more information on company mergers in the country.
Types of shares in Bulgaria
The registered shares are a type of materialized stock, as opposed to the contributions in kind that can also be made when opening a company in Bulgaria. These can be transferred if the shareholders agree to do so, through an endorsement and if the process is duly noted in the company documents. Another option is to buy bearer shares, ones that do not contain the name of the shareholder.
Our lawyers can help you with additional information about buying company shares and related issues such as listing on the Stock Exchange in Bulgaria.
Contact our law firm in Bulgaria for more information about the company law.