The use of “closing a company” as terminology has gained wide popularity – it summarizes the various procedures and their stages provided for in the Commerce Act aiming at the dissolution and final deletion of the company (or other merchant) from the Commercial Register.

General Information

Upon deletion from the Commercial Register the company ceases to exist as a legal entity (person); prior to deletion companies need to be dissolved and liquidated (by going through winding-up proceedings). Grounds for termination are set forth in the Commerce Act, the most widely used of them being through a General Meeting’s resolution to such effect. Winding-up proceedings include liquidating the property of the company, collecting outstanding receivables, repaying creditors, etc.

Termination does not always entail liquidation – for example, there is legal succession upon Transformation of Companies and the transforming company may be terminated and deleted without going through winding-up proceedings. Liquidation is not to be conducted when deleting a Sole Proprietor either.

Detailed information on liquidation and deletion procedures, including information about the stages and the necessary documents and costs, may be found in the articles of the Info Center – see also the links listed in the right section of the page under Related Procedures.

The liquidation procedure is usually complex and could involve: several stages, including several entries and publications in the Commercial Register; considering possible specifics and other complications (for example, when liquidating medical treatment facility); complying with special tax law requirements; preliminary procedures before the NRA; carrying out numerous actions for selling out assets, satisfying creditor claims, etc. Such proceedings require joint work and coordination between the management of the company, the lawyer, the accountant and the other experts involved.

Experience

As a lawyer practicing corporate and company law I have extensive experience in providing legal services in procedures for dissolution, liquidation and deletion of companies. In my practice I have had numerous occasions to work on the liquidation of different types of companies (LLC, Joint-Stock Companies, General Partnerships) and other merchants, such as cooperatives, branches of foreign companies, etc. I have also provided legal assistance in numerous procedures for deletion of Sole Proprietors from the Commercial Register.

Requesting the Service

For requesting the service you need to contact me via any of the ways listed on the website, so that we schedule an appointment for discussing the terms and details of the work to be assigned. Currently the service can not be requested remotely (at a distance); only a legal consultation on matters related to the dissolution of companies procedure can be requested online (via the Internet) – in case that you are interested in such service, please visit the Online Consultations page.

Necessary information will be provided in the process of requesting the service (at the meeting or later via phone or email).

What Does the Service Cover

The service covers full legal assistance with the liquidation and deletion of your company from the Commercial Register with the Bulgarian Registry Agency – more particularly (in the case of a company’s liquidation):

drafting and filing with the Commercial Register of the documents necessary for the registration and announcement of the liquidation of the company;

filing an application with the NRA pursuant to Art. 77 of the Tax and Social Insurance Procedure Code (upon client’s request);

drafting and submission for publication of an invitation to the creditors of the company;

joint work with the accountants and liquidators, including day-to-day consultations on the legal aspects of the liquidation procedure;

drafting and filing with the Commercial Register of the documents necessary for the deletion of the company.

Please, note that my service does not cover any other assistance outside of what’s listed above. More particularly, the service does not include: delivering payrolls to the National Social Security Institute, submitting tax return forms, selling out assets, terminating pending contracts, paying outstanding obligations, etc. Such actions are to be undertaken by the liquidator – personally or with the assistance of an accountant.

Time for Completion

The total time for completion of the service may vary depending on the specifics of the particular situation but may not take less than 6-7 months (unless liquidation is not necessary as in the case of a Sole Proprietor’s deletion). Such time period might be extended even more if necessary to undertake preparatory steps for obtaining certain documents or if unforeseen events during the winding-up proceedings occur.

Fees

My fee for assistance in a company liquidation procedure is in most cases at the minimum amounts as per Ordinance No. 1 of 09.07.2004 on the minimum amounts of attorney fees. On page Fees you can find more particular information on the fees for the various types of services – including the one for deletion of a Sole Proprietor (100 levs) and for liquidation of an LLC (400 levs).

The attorney fee needs to be pre-paid – not less than 50% of the amount being due in advance.

If you want to request the above presented service or have any questions, please don’t hesitate to contact me via any of the ways listed on the website, including via Viber or Skype (see below or visit the Contact page).