MiFID License in Bulgaria

Bulgaria has proven to be the perfect jurisdiction for incorporating and running FX companies. This is due to its attractive tax regime, their EU Member Status, its implementation of Markets in Financial Instruments Directive (MiFid), and a strong regulatory regime.

According to the Bulgarian legislation, only licensed and registered investment intermediaries can provide FX trading/investing services. This requires direct approval of the Financial Security Commission (FSC) in accordance with Markets in Financial Instruments Act. A few of these requirements are minimal capital investment as well as personal and professional guidelines in regards to the firm’s director.

Every FX brokerage firm licensed by the FSC falls under MiFID, the regulatory organizations for investment services across the 30 European Economic Area member-countries. As such, the ensuing license is valid across the EU, and allows FX brokerage firms to offer investment services, establish representative offices, and create fully-operational branches in any desired location within the European Union.

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Changes in Bulgarian Commerce Act 2017

Significant changes in Bulgarian Commerce Act were adopted at the end of 2016, valid in the current year. We present below a summary of the most significant changes introduced with the present Act.

Validity form of certain documents is getting stricter

In addition to the current requirements for notary certified signatures on contracts for the transfer of commercial enterprise and contracts for the transfer of shares, a new requirement for additional notary authentication of the content of such contracts is introduced.

The same validity form will be required for the decisions of shareholders of limited liability companies for acceptance and exclusion of shareholders, increase and decrease of company’s capital, shares transfer to a new shareholder, appointment of company manager, acquisition and disposal of real estate and property rights thereto.

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Establish a FOREX company in Bulgaria

Global Consult Europe is a consulting agency specialized in international corporate law. We will provide you with all the necessary know-how on how to start your own Forex business. Thanks to our partners we can offer you a full range of services that include:

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How to start a beauty salon in Bulgaria

How to open a beauty salon/ hair salon/ beauty parlor in a few easy steps?

  1. Company registration, by which you can do business in Bulgaria.
  2. Tax registration – voluntary under Art. 96 of VAT Act.
  3. Purchase and registration of cash register (fiscal device).
  4. Ensure a suitable object in which the activity will be performed – it can be hired (lease contract is required) or private property (title deed is required).
  5. The purpose of the property should be for business activity, in this context a change of status of the property may be indispensable.
  6. Certificate of commissioning.
  7. Observed requirements on fire safety of commercial property – a permit issued by General Directorate Fire Safety and Protection of Population.
  8. A notification for opening an object of public designation to the relevant regional health inspectorate and obtaining a certificate of registration after verification.
  9. Possession of master certificate and registration pursuant to Skilled Crafts Act.
  10. Preparation of internal rules and operation instructions.
  11. Registration of working time of stationery commercial site – it is done in the relevant municipality.

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Announcement of annual financial report

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.

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New rules for registration of NGOs in BULSTAT Register

New rules for registration of non-profit organizations (NGOs) in BULSTAT Register came into force on 01.05.2016.

The register now functions as centralized electronic registry which implements registration and issuance of reports and certificates of recorded circumstances. Thus any foundation, association, trade union organization or community center will have its own electronic file, similar to the Commercial Register.

The representatives of NGOs will have the opportunity to use automated electronic services of BULSTAT Register – to submit electronic documents and make electronic references.

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Transport license in EU

Community license for international road haulage

Registration of transport company

How to get transport license in Bulgaria?

It is necessary to have a registered company (regardless of the legal form – LTD., JSC., etc.) and its scope of activity is specified for the carriage of goods against payment. Registration of company which carries out transport activity has its own peculiarities, therefore you can count on our qualified legal assistance in registration of transport company.

What documents are needed for Community license for international road haulage?

There are specific requirements for the head of the company’s activity:

Certificate of conviction of the person who manages the transport activity – should not be convicted or deprived of the right to exercise transport activity;

Certificate of professional competence, issued to the person who manages the transport activity – cannot manage more than two transport companies ;

Contract for the appointment of the person who manages the transport activity;

Regarding the company itself must be submitted:

Information for financial stability – it depends on how many vehicles will operate; For the first vehicle the company must have the equivalent in BGN of 9000 EUR and for each additional – the equivalent in BGN of 5000 EUR. Proof of financial stability can be achieved by deposition of the amount in the company’s capital, bank guarantee in Bulgarian bank or conclusion of insurance contract for a insured sum in the same amount.

Notification to the National Revenue Agency;

Declaration that the trader who applies for a license does not have an open procedure of bankruptcy;

Declaration of existence of own or leased garage area with exactly specified address in Bulgaria;

The license shall be issued within 30 days of submission of the documents.

The transport license is not unlimited, it is issued for a period of 5 years. Renewal is possible before the expiry date.

The transport company must comply with the requirements of the law not only when applying for a license but also during the entire period while exercising transportation. Companies which perform carriage of goods without required license shall be subject to large fines.

The requirements for obtaining a license should be carefully observed, therefore Global Consult Europe advises you to contact our team of professionals.

Certifications and legalizations

If you plan to start a business in Bulgaria by company registration or commercial representation of your foreign business, it may be necessary to provide documents from abroad, subject to certification and legalization. This text will help you understand what is apostille, when and for which countries it is mandatory to be used and where it is issued.

For a document issued by a foreign state to be recognized by Bulgarian institutions, it shall be arranged in a way which depends on whether the respective state is a party to the Hague Convention, whether between the two states there is a Legal Aid Agreement that is still in force or whether this state does not fall in any of the first two groups.

Requirement for apostille

All documents issued in a foreign state which is party to the Hague Convention shall have an apostille from the Ministry of Foreign Affairs.

List of the parties to the Hague Convention – CHECK HERE.

List of institutions issuing apostille in different countries – with addresses and contact details.

Example of apostille

Apostille

(Convention de La Haye du 5 octobre 1961)

1. Country: ………………………………………….

This public document

2. has been signed by ……………………………

3. acting in the capacity of …………………….

4. bears the seal/stamp of …………………….

Certified

5. at …………………….  6. the …………………….

7. by ………………………………………………………

……………………………………………………………….8. No. …………………….

9. Seal/stamp:         10. Signature:

…………………….          …………………….

Translation in Bulgarian

Documents with apostille need to be translated in Bulgarian in one of the two ways below:

1/ by a consular or diplomatic official in the country where the document is issued;

2/ by a translation agency authorized by the Ministry of Foreign Affairs of the Republic of Bulgaria.

Certification of the translation

The translation of the document shall be certified in Bulgaria.

STATES WITH WICH THE REPUBLIC OF BULGARIA HAS BILATERAL LEGAL AGREEMENTS

For states with which the Republic of Bulgaria has bilateral legal aid agreements with provisions for exempting the documents from legalization with apostille, documents issued by the foreign state must bear the stamp of the respective authorized institution as per the bilateral agreement. The thus issued document is recognized by the Bulgarian institutions and it only needs its Bulgarian translation which shall be certified.

List of the states with which the Republic of Bulgaria has bilateral legal agreements – CHECK HERE.

FOR ALL OTHER STATES

In case the documents have no or cannot have any apostille, in order to trigger actions on the territory of Bulgaria, they need to be certified (legalized) in line with the generally accepted practice:

  • The document is required to be certified by the Ministry of Foreign Affairs of the state that issues it;
  • The stamp of the Ministry of Foreign Affairs of the foreign state shall be certified/ legalized by the Bulgarian diplomatic or consular mission in that state.

Source: mfa.bg

Global Consult Europe will advise you on any questions and assist you for the legalization of documents in Bulgaria – just contact us.

Acquiring BG citizenship of foreigner

I. Under Art. 13 of Bulgarian Citizenship Act

The person who is not Bulgarian citizen:

  • Must be an adult;
  • Has not been convicted of a crime by Bulgarian court or is not prosecuted for such a crime, unless rehabilitated;
  • Has an income or occupation that enables him to live in Bulgaria;
  • Is skillful at Bulgarian language;
  • Is released from present citizenship or will be released from it at the moment of acquiring Bulgarian citizenship – exception for spouses of BG citizens, citizens of EU-countries, other countries with which Bulgaria has a contract;

And  before no less than 3 years of the date of filing of naturalization application has been given permanent residence permit.

The person must also meet one of the following requirements:

  • Legally married to BG citizen – not less than 3 years;
  • Born in Bulgaria;
  • Permanent residence permit is obtained before adulthood;

II. Under Art. 13a of Bulgarian Citizenship Act

1) The person who is granted refugee status or asylum before no less than 3 years of the date of filing of naturalization application:

  • Must be an adult;
  • Has not been convicted of a crime by Bulgarian court or is not prosecuted for such a crime, unless rehabilitated;
  • Has an income or occupation that enables him to live in Bulgaria;
  • Is skillful at Bulgarian language;

2) The person who is granted humanitarian status before no less than 5 years of the date of filing of naturalization application:

  • Must be an adult;
  • Has not been convicted of a crime by Bulgarian court or is not prosecuted for such a crime, unless rehabilitated;
  • Has an income or occupation that enables him to live in Bulgaria;
  • Is skillful at Bulgarian language;

Necessary documents:

  • Application form;
  • Copy of the birth certificate;
  • Certificate from the Ministry of Interior for a permanent residence permit;
  • Certificate of marital status and presence of civil marriage with BG citizen;
  • Certificate from the State Agency for Refugees for granted refugee status/ asylum/ humanitarian status;
  • Certificate of conviction;
  • Document from the prosecution that the person is not prosecuted for a crime of general nature;
  • Certificate from the employer for employment/service relationship;
  • Document proving command of Bulgarian language;
  • Medical document proving that the person doesn’t suffer from diseases;
  • Declaration form;
  • Official document certifying the change of name if exists;
  • Curriculum Vitae;
  • Actual photo – passport size;
  • Photocopy of the ID document;
  • Receipt for paid state fee;
  • Document from the relevant foreign authorities that the person has been released from present citizenship – if it is necessary;

The documents provided must be certified, translated and legalized according the requirement of Bulgarian legislation.

The application along with the necessary documents shall be submitted personally.

If you have any questions regarding the acquiring of Bulgarian citizenship, do not hesitate to contact us.