Resources Administration Formation of a Bulgarian joint stock company

Formation of a Bulgarian joint stock company

In this article you could find the most important things you should now before incorporating Joint stock company (JSC) in Bulgaria.

Why choose JSC?

The main benefits of the JCS are

• No personal liability for debts of the company
• Investment options without the need to participate in the management
• Easy and fast transfer of the shares
• Defining different types of shares the way you want

How to incorporate JSC in Bulgaria?

First, you will need to decide who are going to be the shareholders. It could be just one person or more. Next you will have to chose the amount of the capital of the Company – the minimum capital in Bulgaria is BGN 50 000 or around EUR 25 000. You could split the shares among the shareholders the way you want.   

You will have to put at least ¼ of the capital in a bank account. Opening a bank account in Bulgaria sometimes is not the easiest task. If you give us a power of attorney we could do that for you.

The next step is to chose the way the company will be managed. There are two options:

• Counsel of directors or
• Board of directors and supervisory board

If you want to operate faster and be more flexible – the first option is the right choice for you. If you want more security and supervision of the management, you should choose the second option.

The most important decisions for the company are adopted from the General assembly. It consists of the shareholder. The general assembly adopts decisions regarding:

• Amendments to the Incorporation act;
• Increasing or decreasing the capital
• Transforming or liquidating the company;
• Election of the management body releasing its members from office.

After you have decided on the specifics and have prepared the required documents you should submit the documents to the Bulgarian Company registrar. This registrar is public and everyone would be able to see the management body of the company. The procedure takes around 5-10 day.

The article was first published at Advokatami.bg