Selling Shares in a Bulgarian Company
Selling Shares in a Bulgarian CompanyUpdated on Friday 14th October 2016
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The option of selling shares in a Bulgarian company is only available for some types of companies. The various types of legal structures can be used for corporate or special purposes. Shareholders in Bulgaria have rights according to the types of shares they purchase.
One of our lawyers in Bulgaria can provide you with ongoing assistance and legal advice for listed companies and the sale of shares as well as share transfers. The share option plan can be drawn up and included in the company’s Articles of Association and will depend mainly on the type of company and the business field in which it operates.
Share transfer and sale in Bulgaria
Public limited companies can be listed on the Stock Exchange and sell shares to the general public. Shares may be transferred but not sold in private limited liability companies.
Share option plans can exist for employees in Bulgaria although they are not widely used. These special plans are to be used in listed companies; however, the practice was not popular when state companies were first privatized in Bulgaria.
Share option plans are granted by branches or subsidiaries in Bulgaria and are generally more used in the case of offices incorporated by large international companies. Our attorneys in Bulgaria can tell you more about the regulations that are in place and the laws for share plans in Bulgaria.
Shareholders in Bulgaria
The types of shares and their nominal value will depend on the chosen type of company. A private limited company in Bulgaria has a low minimum value for one share and these shares can be transferred to the shareholders of the company. When a transfer of shares is made to a third party, the company Board must approve this transaction. It is common for investors in Bulgaria to purchase shares in limited liability companies and thus acquire majority to control the company.
The company acquisition process is regulated by law and foreign investors who want to purchase shares in a Bulgarian company can request the help of a law firm in Bulgaria. Likewise, companies that engage in the sale of shares and need legal assistance during the process can request the help of a legal representative.
You can contact our lawyers in Bulgaria for more details on share purchase and sale agreements.