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Set Up a Fund in Bulgaria

Set Up a Fund in Bulgaria

Updated on Wednesday 22nd August 2018

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Set-Up-a-Fund-in-Bulgaria.jpgA fund is an investment vehicle that is composed of the collective assets belonging to a number of investors which are then used to invest in stocks, bonds or other types of assets. These funds are managed by a professional fund manager and the purpose is to structure the portfolio in such a way that the fund will meet its objectives and will produce income for the initial investors.
 
Our team of lawyers in Bulgaria can help entrepreneurs set up a fund in Bulgaria and observe the conditions imposed by the Financial Supervision Commission in the country.
 

Types of investment funds

 
Investment funds in Bulgaria can take a number of forms, and the most commonly encountered ones are described below:
 
  • - Money market funds: these invest in income securities that are considered to be short-term investments such as government bonds
  • - Fixed income funds: corporate bonds or debt instruments are included here because they provide a fixed and steady income.
  • - Equity funds: these funds are used to invest in stocks and are perceived both as a type of fund that offers a faster growth but it is at the same time most risky.
  • - Balanced funds: the investments, in this case, are made in a combination of equities and fixed income; they offer a different degree of stability compared to the previous category.
 
An investment fund can be incorporated as a legal structure such as a limited liability company. One of our attorneys in Bulgaria can give you more details about the incorporation, the registration and the compliance regarding licenses and management (for funds managed by a professional fund management company).
 

Investment fund regulation in Bulgaria

 
The Financial Supervision Commission is the authority in charge of the licensing procedure as well as the regulatory activity for investment and financial vehicles. The Commission is also the one that can enforce coercive measures against entities that do not comply with the legislative acts. These sanctions can come in the form of fines or administrative measures.
 
Our team of lawyers in Bulgaria can give you more details about the laws regulating investment vehicles.
 
Contact our Bulgarian law firm for complete legal assistance and counseling.