Special permits and licenses for Bulgarian companies
Special Permits and Licenses for Bulgarian CompaniesUpdated on Friday 07th February 2020
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As a foreign individual trying to establish a business in Bulgaria, you will be happy to find out that the same conditions which must be accomplished by a local entrepreneur must be accomplished by you too and nothing extra.
All the Bulgarian investors must follow the regulations of the Commercial Code and must register at the Trade Register before starting any type of commercial activity in Bulgaria.
The private companies willing to go public must respect the regulation of the Public Offering of Securities Act and must receive a license from the Financial Supervision Commission or obtain a trading permit under the Public Offering of Securities Act.
Also keep in mind that the special investment purpose companies have specific requirements which must be accomplished before beginning the trades.
In order to obtain a license from the Bulgarian Financial Supervision Commission you must present a series of documents such as information on the company’s capital amount and structure; the origin of the amounts on the basis the capital was covered, requirements of the members of managerial or supervisory boards. These information can be found in the E-Register of the Bulgarian Financial Supervision Commission. Under the Bulgarian Law the electronic documents submitted to the system e-Register, must be signed by electronic signature.
Public companies are required to publicly disclose the information specified by law for their activities on the FSC website. The Commission shall maintain a register of all regulated entities - including public companies and other issuers - including information about their activities, details of shareholdings, the headquarters of the company, management, annual and periodic reports and more. This register is public, which means that every citizen has the right to access it.
The special investment purpose company are joint-stock company established for multiple reasons, such as collecting cash through the issuance of securities or purchase of real estate in order to make them available for management, letting, leasing or tenancy.
After registration in the Commercial Register of such entities, but not later than six month, the members of the Board of Directors of your special investment purpose company must issue an application to the Financial Supervision Commission for receiving a special license. Along with the application, you must deliver the constitutive documents (usually the Articles of Association), the prospectus for the mandatory increase of the capital through public offering, a certificate from the bank stating the deposited capital, the name of the individuals keeping more than 5 per cent from the shares with voting rights, evidence of the origin of the funds serving as a source of the contributions. The license is granted no later than one month by the FSC.
Apart from observing these requirements for special permits and licenses for functioning, some companies will also be required to perform an EORI registration.
Contact our law firm in Bulgaria for more details about licensing requirements.