Commercial Law in Bulgaria
Commercial Law in BulgariaUpdated on Monday 18th April 2016
Rate this article
based on 1 reviews.
based on 1 reviews.
Entrepreneurs in Bulgaria must observe the Bulgarian Commercial Law. This set of rules and regulations governs all business activities in Bulgaria and defines the legal entities which are entitled to perform economic activities in Bulgaria. Our Bulgarian lawyers can help you with detailed information about the most important aspects of this law.
The first part of the Bulgarian Commercial Law deals with general information about the commercial activity. For legal purposes, merchants in Bulgaria are natural or legal persons who perform certain activities like:
- purchasing goods for the purpose of reselling them,
- purchasing securities,
- manufacturing goods for sale,
- making transactions with intellectual property,
- working in banking,
- performing foreign exchange transactions,
- working in various services like transportation, tourism, advertising, information, entertainment and other services.
Any individuals who have opened a business in Bulgaria that conducts commercial activities on a daily basis (even if these activities are not included in the listed activities) will be considered merchants.
In Bulgaria, natural persons who perform farming activities are not considered merchants. Neither are artisans or individuals who provide services through their own labour or who are members of professions, except if the activities can be included in the list described above.
Registering a company in Bulgaria and providing a trade name
All companies (or merchants) in Bulgaria must apply for registration at the Bulgarian Trade Register. The application must be submitted within seven days after the commercial activity was incorporated. The Bulgarian Trade Register offers the option to look for information about a registered company. Our lawyers in Bulgaria can guide you through the company registration procedure in Bulgaria.
Any company in Bulgaria must choose a trade name and have a registered office. The name must state the purpose of the business and offer truthful information about the activity of the company. Our Bulgarian lawyers can help you register a trademark.
Companies in Bulgaria
The Bulgarian Commercial Law regulates the main types of companies that can operate on the territory of Bulgaria:
- sole proprietorship;
- general partnership;
- limited partnership;
- limited liability company;
- joint-stock company;
- partnership limited by shares.
Each type of company has its own particularities and its main characteristics are defined in the Commercial Law under specific chapters. The most important information regarding companies in Bulgaria refers to their incorporation, the rights and obligations of the shareholders, the company’s articles of association, increases and decreases in capital, changes in legal forms, including mergers in Bulgaria and information about liquidating a company. The Commercial Law also regulates branches in Bulgaria.
The Bulgarian Commercial Law also regulates transactions between enterprises, the relationship between a merchant and different agents and bankruptcy procedures in Bulgaria. The accounting obligations that must be observed by any company in Bulgaria are also included in this legal document.
For more information about other important legal matters and the legislation for foreign investments, please contact our law firm in Bulgaria.