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Liquidation or more time to reregister for 900,000 firms

12 October 2010

Only 25 percent of Bulgarian companies are operational in real terms, according to data by the Registry Agency.

Three months ahead of the expiry of the three-year period Bulgarian businesses were given to reregister just 285,301 firms have registered with the agency and almost 900,000 have not done so. With the December 31 deadline looming large, it is impossible to register more than 50,000 – 60,000 companies within the 80 working days left.

Thus the reform, which was postponed thrice even before its kick-off in 2008 is facing another delay as no timely solution has been found for the coming problems.

The Ministry of Justice did not respond to inquiries by Dnevnik on what progress has been made with the pressing amendments to the Commercial Registry Act without which the liquidation of 900,000 companies will cost taxpayers BGN 450 million.

Unofficial reports claim that yet another working group has been tasked with drafting the bill but has not come up with specific texts.

Back in July and August the justice ministry announced two projects but none has made its way into the Council of Ministers and Parliament. According to the proposals, sole proprietors and branches of foreign companies that fail to reregister by January 1, 2011 will automatically cease to exist and will be struck off the registry. Commercial entities and cooperatives will be removed from turnover and they will be banned from making use of their property, striking deals and making payments to business partners.
Source: Standart

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