Transfer of company in Bulgaria (transfer of company shares)
Transferring the whole company to another person is the cheaper way for transfer of the property in Bulgaria when the company has been established only for the purpose of acquiring the property and it is its only asset.
The transfer of a whole company under the Bulgarian legislation means transfer of 100% shares of the shareholders in Limited Liability Company or transfer of the shares of the owner of the capital in Single Owned Limited Liability Company.
The procedure for transfer of company shares requires at first place signing of Contract for transfer of shares which should be notary verified. The notary fee is paying only for verifying the contract is much lower than the notary fees calculated for transfer of property. Since 30.12.2016 there are new legal requirements for verifying the contract according to which the transfer of the shareholding shall be effected by a contract signed with notary certification as of the signatures as of the content of the contract executed simultaneously by the notary.
There should be also a Decision of the General meeting of the shareholders for transfer of the shares. (When the company is a limited company with single owner of the capital (EOOD), the owner of the capital (individual or legal entity) is taking the functions of the General Assembly.) According to the new legal requirements for transfer of company `s shares for these decisions shall be drawn up a protocol also with notary certification of the signatures and the contents carried out simultaneously by the notary.
The new owner(s) of the company should be registered in the Commercial register. It is possible together with the change of shares to be changed the address of the company or other element of the company status.
This article is prepared by "Valova & Angelova" Law firm