For sellers

Bulgarian Company Annual Accounts – 2013

11 January 13

Bulgarian Company Annual Accounts – 2013

The time is again almost upon us when all Bulgarian companies must submit their annual accounts to the Registry Agency. The deadline is the 31st March 2013 for the 2012 accounts, but as with any such matter it is best to act well ahead of the final submission date to avoid government fines.

Last year saw a considerable clampdown on companies that failed to submit, even if no trading had been performed and a nil return was due, unfortunately the authorities make no exceptions and standard fines are now 1000 BGN (512 Euros). These fines are irreversible and all assets owned by the offending company, including properties, cannot be legally moved or resold until these fines are paid. This is simple for the state to enforce as the local municipality will not issue ‘encumbrance certificates’ until the debts are cleared, which any Notary must see before approving and legalising any sale of any property. Whilst the annual interest applied to unpaid fines is typically negligible, the final result is certain; the fines will have to be paid sooner or later whenever the company owners decide to transfer or sell the assets or the company as a whole, there is no avenue out.

In many cases the state has acted against grossly negligent companies by seizing and repossessing assets. Although not common amongst those foreign owned companies used solely as vehicles for property ownership, the same laws do apply and thus it is technically possible and does happen. Every company director should be aware of the inherent risks of not submitting annual returns, especially given the minor cost of the service to comply with their responsibilities.

If you are looking to service your company accounts or are concerned about previous years of submissions, please feel free to contact us and we will happily check the registry for you and confirm what needs to be done and what we can do to help.

For further details of this service please click here.