Pursuant to the Bulgarian Accountancy Act (Закон за счетоводството) companies must publish in the Commercial Register and Register for Nonprofit Legal Entities ("Commercial Register") their annual financial statements by 30 June of the calendar year following the reported period. Companies which have not carried out any activity during the reported period are exempt from this obligation. Prerequisite for the exemption is that the company's lack of activity is expressly declared before the Commercial Register.
Who is responsible?
- The management may declare before the Commercial Register that the company has been inactive.
What is the filing deadline?
- 31 March 2020.
- If the company misses this deadline, it will have to publish its annual financial statements for 2019 by 30 June 2020.
What is the filing fee?
- There is no filing fee for the Commercial Register for declaring inactivity.
- However, if the above deadline is missed and the company must thus publish its annual financial statements, a filing fee will be due for the publication of the annual financial statements (regardless if the company is actually inactive).
What form and documents?
- Sample form declaration confirming that the company is inactive and other standard documents for the Commercial Register.
- The filing in the Commercial Register can be done electronically.
When is a company inactive?
- A company is deemed inactive when it has not carried out commercial transactions during the reported period, has not engaged in investment, production and/or sale activities, has not purchased goods and services for the purpose of obtaining income and profit and when for the reported period no conditions to recognize income have occurred.
By Gergana Roussinova, Associate, Schoenherr