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26.03.2008 New Trade Register and Registration of Companies in Bulgaria

BulgarianProperties Head Office

A new Law for the Trade Register came into force on 1.01.2008. This Law refers to the registration of new business companies in Bulgaria as well as registrations of all existing companies in the new online trade register. According to this new Law, all existing companies must be registered in the new register by 31.12.2010. If this is not done, they will be removed from the register of companies in Bulgaria resulting in loss of their assets (properties for example).

The new trade register is hosted by the Registration Agency and is planned as a unified data base of all companies in Bulgaria and their details, which will be publicly accessible and centralized. This is a needed and helpful change in the administration and the results will soon be seen.

However, there is a complication that the Law makes for the registration of companies. The complication is that all existing companies need to submit their tax declarations for previous years to the new online register by 30.06.2008. This means that the companies need to first be registered there, so that their declarations are submitted on time. This actually is a contradiction to the term of 3 years and the Law reduces this term to 6 months for the majority of the companies. It is expected that this law will change soon but if it doesnt, there will be fines for not submitting declarations by 30.06.2008.

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