Resources Company management Liquidation of a Bulgarian company

Liquidation of a Bulgarian company

You should consider liquidation of your company in Bulgaria in case it is no longer active. The liquidation is a good idea in such cases, because you will no longer have administrative duties such as:

• Submitting social security declarations for the manager of the company
• Submitting financial statement in the Commercial registrar

The liquidation is by no means a fast process. It takes around 6-8 months. During the procedure you will need the support of a lawyer and an accountant. The liquidation has to big stages.

The most important thing for the successful liquidation is to pay all due taxes and social security duties of the company. Without this step you cannot finish the procedure. Once you have paid everything, you could apply for a certificate, which proves, that you have no public duties.

The next step is to choose a liquidator. This is the person, who will conduct all  required actions during the liquidation period. In most cases the manager is also the liquidator. Sometimes our clients choose to hire a liquidator from our team. It is important to know, that the liquidator has all the rights and powers as the manager of the company. During this period the manager does not participate.

The liquidation period is at least 6 months and starts with the submission of the invitation to the creditors of the company in the Company registrar. From this date on all legal entities and natural persons can make their claims for payment. In a lot of cases during this period there are no payments to be made and in such cases all you have to do is wait for 6 months.

The second stage is to submit all payrolls to the National Social Security Institute and the final documents to the Company registrar. If everything is alright with the submitted documents, the company is removed from the registrar and with this the whole process is completed.

The article was first published at Advokatami.bg