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How much time it takes for registration a company for foreign origin?

Discussion in 'Bulgaria Property' started by raul, Aug 19, 2006.

  1. raul

    raul New Member

    I am planning to start a Real Estate company in Bulgaria. As per Bulgarian Constitution foreign citizens are not allowed to buy real estate property together with the land. Therefore you shall have to register a company in order to purchase real estate including land in Bulgaria. We usually advice our clients to register a limited liability company.

    The person/persons registering the company shall be liable to deposit such part in its registered capital, which is equal to his/her percentage of shares owned. The required minimum registered capital for a limited liability company is 5 000 BGN deposited in your company?s bank account. I could not gather the information how much time it takes for such registration. If someone can provide the information it would be great help.
    Thanks
    Raul
     
  2. Tania

    Tania Active Member

    Company registration

    Hi Raul,

    the procedure for setting up Company in Bulgaria takes about 14 days /plus-minus/. It is very simple !

    Good luck

    PS: If you want more information please just let me know.


    Tania
     
  3. Valentin

    Valentin New Member

    Hey Raul, i think, there is no need you to settle a company in order to purchase plot or whatever. This is one of the changes made after Bulgaria joined EU!
    Still very unofficial though !
     
    Last edited: Jan 14, 2007
  4. Tania

    Tania Active Member

    do not agree!

    Hi Valentin,

    what you wrote is not correct!
    There is no law saying that! For now all the foreigners need to register company in order to buy land! Yes, it may change soon but for now there is 7 years probation period /2007 - 2014/. I spoke with the Ministry of Agriculture and with my lawer about this!

    You say its unofficial! It has to be OFFICIAL before telling it to anyone! Otherwise is just your opinion!

    Please have a look at the article below:




    " Right to land acquisition in Bulgaria by aliens – a prerequisite for our country’s EU membership


    The removal of the prohibition on the acquisition of ownership over land by aliens and foreign legal entities is one of the six mandatory amendments to the Constitution that Bulgaria has to make in relation to EU membership and the ratification of the Treaty of Accession. This will make us party to the principles of United Europe, which we strive for, it will encourage land market development and will create more favorable conditions for attraction of more and more foreign investors.

    The amendment to the organic law in this respect was discussed at the National Assembly Ad-Hoc Committee on Amendments to the Constitution. The representatives of all parliamentary groups united around a draft wording according to which aliens and foreign legal entities will be able to acquire ownership over land under terms and procedures set forth by statute or under international treaties ratified by the National Assembly.

    A parliamentary committee was established last year to prepare the amendments to the organic law related to the future full membership of the Republic in Bulgaria in the European Union. In September 2003 the National Assembly adopted the first amendment to the Bulgarian Constitution related to the immunity, non-replacement and mandate of magistrates. The change of the status of magistrates was made in compliance with EU requirements and ensured the basis for real reforms in the judiciary.

    The present Art. 22 of the Constitution, related to the issues of land, reads as follows:
    “(1) No foreign physical person or foreign legal entity shall acquire ownership over land, except through legal inheritance. Ownership thus acquired shall be duly transferred.
    (2) A foreign physical person or foreign legal entity is free to acquire user rights, building rights, and other real rights on terms established by law.”

    The removal of the prohibition ensues from a commitment made by Bulgaria in the negotiations process with EU on Chapter 4 “Free movement of capital”, the chapter being provisionally closed in July 2001. In the negotiation position on Chapter 4 the country has made a commitment to amend Art. 22 of the Constitution with the purpose of removing the existing general prohibition on the acquisition of ownership over land by foreign physical persons or foreign legal entities from EU Member States and the States which are a party to the European Economic Area Agreement. This prohibition should be removed as incompatible with the principles of free movement of capital and equality of each EU Member State legal subjects set forth in Art. 56 of the Treaty establishing the European Community. The proposal this prohibition to be removed is based on the need for unification of national and foreign physical persons and legal entities regime in respect of the right of ownership over land, which is the practice in the ten newly acceded countries negotiations. It follows from this that the Bulgarian Constitution should not make any difference between national and foreign physical persons and legal entities.

    The commitment for this amendment to the Constitution is as of the date of signing the Treaty of Accession of Bulgaria, i.e. year 2005.

    In the Committee the discussions continue whether this prohibition should be removed only for EU Member States nationals and legal entities or for all foreigners, but there is not a united opinion on this issue yet.

    The removal of the prohibition on the acquisition of ownership over agricultural and forest land by foreigners will come into force after the expiry of a 7-year transitional period, as from the date of Bulgaria’s full membership in EU – from 2007, i.e. from 2014. The period is provided for in the negotiation position of our country and aims at guaranteeing the alignment of market prices in Bulgaria with the European ones, as well as better protection of Bulgarian owners interests.

    The market of land in Bulgaria is in the process of development; the price of land is times lower compared to land prices in EU Member States. Because of their lower income Bulgarian nationals do not have substantial possibilities to acquire ownership over land like EU nationals. Neither the cadastre, nor the property register are finished, which are a prerequisite for land market development. That is why the seven-year transitional period has been negotiated, which period will allow a real land market to be developed and ensure equal possibilities for acquisition by Bulgarian nationals too. Such a transitional period has also been negotiated by the other newly acceded East European countries. (See the Appendix).

    Under the commitments made by our country in the negotiation process, as from the moment of accession in 2007 foreign physical persons and legal entities from EU Members States, wishing to reside in the country under the right of residence, will be able to buy land in Bulgaria for the needs of their business or the profession exercised by them – for first residence and for administrative purposes. In respect of self-employed farmers, residing permanently in the country and active in farming, no transitional period is provided either. The transitional period negotiated on the acquisition of land for secondary residence is 5 years from the date of accession.

    The principle around which the Committee members have united is through amendment of the Constitution text to remove the general prohibition and after that all the details, terms and procedures related to ownership over land to be provided further by statute, which will be drafted based on the new constitutional provision. It is assumed that the restrictions may be related to national security, to ownership over land in the border regions, in nature and historic reserves.

    The removal of the prohibition foreigners to buy Bulgarian land is an important condition both for the integration of our country in the European family and for attraction of more and more foreign investors. Extraordinary growth of foreign investment is being observed in Bulgaria in the last year, but the removal of the prohibition foreigners to acquire land in the country would win even more their confidence, would guarantee their security and good conditions for business development. As a full member of the European Union Bulgaria will have to respond to the universally accepted European rules and principles."
     
  5. Valentin

    Valentin New Member

    It has to be OFFICIAL before telling it to anyone! Otherwise is just your opinion!

    Yes Tanche this is my opinion, and why it has to be official to post it ?! Do I have to read the law to post an opinion in this forum? It seems like you are professional and maybe you are an owner of a company, which doesn't make you adiminstrator in this form. I can say whatever I want, that's why the forum is for. Thank you for the article, might be of big help for everyone !
     
  6. Tania

    Tania Active Member

    Hi Valio! : )

    Raul asked a simple question - how long it will take.....
    Of course you may write your opinion but it is missleading!

    About me trying to be administrator - you do not have to be rude! I can write whatver I wish as well ! Do not forget that!

    To cut it short - If I see something I do not agree with I will write / reply the way I find its right! I do not care if someone will find it uncomfortable!

    T.
     
  7. Valentin

    Valentin New Member

    Hey Tania I did not mean to be rude, and sorry if I left such impression! Apologize for that, and will say it again, it was just my opinion, something that I previously heard, tried to give Raul an idea, so shall he need further information he will have an idea what question to ask etc. However I realized that people can find proffesional help from people like you here!
    Thanks a sorry if I insulted you ! :cool:

    V.
     
  8. Tania

    Tania Active Member

    HI Valio! Its ok really! Do not worry!
    :) ;)
     
  9. thetravelbug

    thetravelbug Banned

    to you both...

    Not to get caught up in this argument but as I understand it the Bulgarian government has introduced a law saying that foreigners will not need a company to buy but there is a period of up to 7 years I think it was to introduce this...from one lawyer I was told not to expect changes before 2010. So for now you still need a company.

    However, Tania, it takes more than 2 weeks to register a company here. You need to reserve company name, place annoucement in gazette, have company capital sat in account for 21 days at least (might even be 30), then actually complete registration, get Bulstat number and so on. Realistically takes at least 3 to 4 weeks, not two.

    Rachel
     
  10. Valentin

    Valentin New Member

    and here we goooooo :p :p :p
     
  11. Tania

    Tania Active Member

    Re:

    :p It never took me more than two weeks to register a company! In some cases it took me only 3-4 days!!!
    Hey Valio!!!!;) :p
     
  12. thetravelbug

    thetravelbug Banned

    How when company capital has to sit in company account for certain amount of time, notice has to go in Gazette, checks on company name, actual registration and getting Bulstat etc...I am talking about the whole process from start to finish, not just the actual registration at the end when all the other stuff is done.
     
  13. Tania

    Tania Active Member

    reply

    :confused: Should I give you the contacts of the solicitors I work with.
    If it takes you too long, may be you should ask yourself why? Seriously, I work with different solicitors in different regions of Bulgaria and I never had to wait so long!

    I am even very surprised! If you need me to give yopu contact details of good solicitors just let me know!

    Best Wishes,
    Tania
     
  14. thetravelbug

    thetravelbug Banned

    I think you are missing the point Tania. This has nothing to do with having a good solicitor or it taking too long - this is the procedure. These are the rules for setting up a company - deposit has to be in account for set number of days, annoucement has to go in gazette....

    Rachel

    P.S I have a very good Solicitor thank you.
     
  15. Tania

    Tania Active Member

    re

    Ok, this is my last posting! Its getting really boring.....
    How comes that most of the companies we open for our clients take no longer than 2 weeks /sometimes few days/?! May be in Stara Zagora Court are more busy than all other places!
    I am not 12 to sit here and lie ; I do not want to play this silly game:
    "I am right" "no, I am right" "I am right" "no, I am right"

    Who ......... cares?!
     
  16. redhead

    redhead Guest

  17. prettypiggy

    prettypiggy New Member

    It takes more like a month than just 14 days with all the other registrations (apart from the court one) of the company. And let’s not forget that it’s not the foreigner that buys the land, but his Bulgarian company that’s a separate entity! Article 22 of the Constitution of Republic of Bulgaria says that foreigners may buy land according to the rules of the accession to the EU. The Accession Treaty of Republic of Bulgaria and Rumania to the EU (appendix 5, item 3. 2) stipulates that Republic of Bulgaria keeps for 7 years the ban on selling land to foreigners. And indeed, if it is the foreigner and not his company that buys a piece of land in Bulgaria, what’s the company for! If it’s the Brit or the Irish who buys the land, he could save himself the time and the expense to set a company in Bulgaria. That’s why all the title deeds I’ve seen clearly state that a particular land estate is bought by the foreigner’s company and not by the owner of the company. It can’t be otherwise before 2014 unless the foreign citizen becomes owner by inheriting the piece of land.
     
  18. Jain and Chris

    Jain and Chris Senior Member

    Hi all

    We have set up two Bulgarian companies now. One based in Sofia and the other based in Plovdiv. Both were done with different sets of accountants/lawyers.

    Both companies took no more than 10 days to become active from start to finish.

    Of course you can do this in less time than this even - there's always an 'express' way in Bulgaria ;)
     
  19. najnaj

    najnaj New Member

    Hi, guys,
    Please, stop arguing and let help Raul and give him the necessary information :)
    Opening of a company in Bulgaria usually takes 3 working days, but just in case we advice foreign people to present in the country at least 5 days to be sure that will be able to complete all the legal procedures. Of course it is available if you have good lawyers and professional agents. If you purchase a property in Bulgaria you must present personaly in front of judge in Trade department of Regional Low Court for veryfication of your passport details, in front of Notary when you actually buy the property and in the bank brunch when you complete the aplication form for opening an account. IT IS NOT NECESSARY TO STAY TO THE VERY END OF THIS PROCEDURE! Often it is impossible - to waste 3 or 4 week only to wait BULSTAT registration or a stamp?!? Absolutely obligatory are the 3 steps I mentioned above, after that you could leave power of attorney of your agent to move the things.
    That's why it is much better and easyer if you rely on big and reputable agency with foreign languages speaking people and long business experience.
     
    Last edited by a moderator: Nov 2, 2007
  20. Jain and Chris

    Jain and Chris Senior Member

    Hi Najnaj

    We've opened two companies now in Bulgaria (one for our business and the second for our house purchase). In neither instance did we have to attend personally in front of the Trade Department, nor at the notary signature. Both of these were done by power of attorney. We also have many thousands of readers who have done the same thing.

    Even for the bank account, the first time we opened one, our lawyer did it for us, we didn't even have to be present for that. The second time, we opened the bank account personally as we were in Bulgaria anyway.

    It is actually best if you rely on an independent lawyer (not the one recommended by the estate agency) who will act solely in your interests.

    All the best
     
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