Commercial representation of a foreign company in Bulgaria – Stanimir Stoyanov Lawyer – Your Professional Adviser! Find out more about the Register of the Bulgarian Chamber of Commerce and how to find the best commercial lawyers in Bulgaria.
The legal nature of the commercial representation of a foreign company in Bulgaria and its legal registration. In its essence, the legal regulation of the commercial representation of a foreign person in the Republic of Bulgaria is based mainly on the Law on the Promotion of Investments, as well as on the adopted Regulations for entry in the Unified Commercial Register of the Bulgarian Chamber of Commerce and Industry.
Who Has the Right to Register a Commercial Representation of a Foreign Company in Bulgaria?
Any foreign person carrying out commercial activity on the territory of the Republic of Bulgaria, by the requirements of his national legislation, may open a commercial representation in Bulgaria.
According to Bulgarian law, commercial representation does not represent a separate legal entity, different from a foreign person. In Art. 24, para. 2 of the Law on the Promotion of Investments, each commercial representation does not represent a separate legal entity and, according to the same legislation, as a non-independent entity, it does not have the right to carry out economic activity. The commercial representation comes into existence with its registration in the Unified Register of the Bulgarian Chamber of Commerce and Industry.
Seen from a tax point of view, according to § 1, item 5 DOPC, this commercial representation represents the parent company as a place of business.
Written Registration in the BULSTAT Register
Although it is not a new legal entity, this same representation is subject to a mandatory procedure of written registration in the BULSTAT Register at the Registration Agency.
The term for the registration of a commercial representation in Bulgaria is 7 days from the date of registration of the commercial representation itself in the relevant register of the Chamber of Commerce and Industry.
Each commercial representation has supporting functions, because it does not have economic activity, and its commercial activity is limited to activities for the maintenance of the foreign person. The commercial representation itself can conclude various types of written contracts on behalf and behalf of the foreign person. The law allows the conclusion of various types of contracts for the needs of commercial representation, including a contract for the rental of premises, purchase of materials for the activity, etc. Representation is not independent and the foreign entity draws funds for its activity from the parent company, but of course, independently it does not generate profit and has no personal income. The main requirement set by the law is that the Trade Representation, upon its registration in the Republic of Bulgaria, must indicate an address that is entered upon its registration in the Chamber of Commerce and Industry.
Most of our clients are foreigners, wishing to register a commercial representation of a foreign company in Bulgaria. In this regard, working as commercial lawyers in Bulgaria, we would like to inform you that all foreigners, carrying out commercial activities, could open commercial representations in the Republic of Bulgaria. According to the laws, the commercial representation established in Bulgaria can carry out non-profit activities, advertising goods, and services, etc.
If you want to make an appointment for a consultation with our lawyers, contact us at +359 888 19 46 20, or by email at stoyanovlegalpractice@gmail.com. Take advantage of the online consultation service now!
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