I. General provisions:
Each partner in a limited liability company (LLC) in Bulgaria is entitled to a liquidation share. Each partner has a partnership share of the company’s property, the amount of which is determined according to his share in the capital. The share in the capital determines the property rights of the partners, one of which is the right to a liquidation share.
Continue reading “Taxation of an individual upon receipt of a liquidation share in an LTD.”
In the event of a change in the manager of a limited liability company (LLC) registered in Bulgaria, the question arises from which moment the newly elected manager should be entered in the VAT and Intrastat declarations, in the company’s reports, etc.
I. General provisions:
Each partner in a limited liability company (LLC) in Bulgaria has the right to participate in the distribution of the company’s profit. Each partner has a partnership share of the company’s property, the amount of which is determined according to his share in the capital. The share in the capital determines the property rights of the partners, one of which is the right to part of the profit (dividend right).
Continue reading “Taxation of an individual upon receipt of a dividend in an LTD.”
Bodies of the limited liability company (LTD.) in Bulgaria are a general meeting and a manager (managers), as the manager may not be a partner. The manager organizes and manages the activity of the company in accordance with the law and the general meeting’s decisions. The company is represented by the manager. Upon several managers each of them can act alone unless the Articles of association provides otherwise. In regard to the sole owner limited liability company (LTD.), the issues that are from the competence of the general meeting are decided by the sole owner of the company. The relations between the company and the manager are settled by a contract for assignment of the management. The contract is concluded in writing on behalf of the company through a person authorized by the general meeting of the partners or by the sole owner.
What is an annual financial report?
The annual financial report gathers full information about the financial position of the company. It includes a statement for revenues and expenses, a balance sheet, a statement for share capital and a cash flow statement.
The financial report is drawn up for one financial year, coinciding with the calendar year – from January 1st to December 31st. E.g: If you have a company created on 01.12.2020, you need to submit a report on the activity carried out in 2020 – in this case only one month.
Who is obliged to announce an annual financial report?
All the traders according to the Bulgarian Commerce Act – this includes Limited Liability Companies (Ltd.), Limited Partnerships, General Partnerships, Joint-Stock Companies, Limited Partnerships with shares. The non-profit legal entities and the rest enterprises are also obliged. Continue reading “Announcement of an annual financial report”
The types of business organizations, most often used in Bulgaria are a Limited Liability Company (LTD/LLC), a Joint-Stock Company (JSC), a branch and a trade representation.
It is the business type most popular among investors and entrepreneurs because of the minimum capital requirements, simplified structure and management. LLC can be established by one or more persons – individuals and/or legal entities. Shareholders in LLC may be Bulgarian and/or foreign individuals and/or legal entities. Continue reading “Types of business in Bulgaria”
