What is an annual financial report?
The annual report gathers full information about the financial position of the company. It includes statement for revenues and expenses, balance sheet, statement for share capital and 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 01.12.2015, you need to submit a report on the activity carried out in 2015 – in this case only one month.
Who is obliged to announce the 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.
Financial statements shall be prepared by accountants or accounting firms. However, there are certain companies whose reports are subject to independent financial audit by registered auditors. These reports are also prepared by accountants but it is necessary to be verified by registered auditor before their announcement in the Commercial register.
These specific companies are several types:
- Joint Stock Companies and Partnerships limited by shares;
- Companies that issue securities for public offering;
- Credit institutions, insurance companies, investment companies;
- Companies involved in social insurance and funds management;
- Companies that shall draw up consolidated financial statements – parent company and its subsidiaries;
- Non-profit organizations in public benefit with assets over 1 million BGN or business income over 2 million BGN;
Announcement of the annual financial statements has certain deadlines as follows:
- For sole proprietors – until 31.05 ;
- For Limited Liability Companies – until 30.06 ;
- For all the rest legal entities – until 31.07 ;
The deadline must be followed for each year thereafter. If the financial statements has not been announced on time, the fine that may be imposed to the company is from 500 BGN to 3000 BGN. Upon repeated violation the amount оf the fine is double.
How to submit annual financial report for company in Bulgaria?
Refer to our team of professionals. We will prepare the report, accounting records, together with additional applications – protocol of general meeting of shareholders / decision of the sole shareholder for adoption of the report, declaration of the truthfulness of the circumstances stated.