500 BGN Only Needed to Register Limited Responsibility Company

Business | May 22, 2008, Thursday // 00:00| Views: | Comments: 4
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The Parliament reduced 10 times the minimum capital needed to register a company in Bulgaria, after adopting changes in the Trade Law on first read.

The changes have been submitted by Martin Dimitrov from the United Democratic Forces (UDF) and stipulate that the minimum capital to register a joint stock company is reduced from 50 thousand BGN to 5 thousand BGN while the minimum capital to register a limited responsibility company becomes 500 BGN instead of the current 5 thousand BGN.

The quick adoption of the changes comes as a surprise since yesterday, during debates, the majority of the Parliament's members voiced objections arguing that the current decree allows any one to register a company anyway and that 500 BGN are not an amount appropriate to be used for the start up of commercial activity since the sum is not even enough for one person to go on vacation nova days.

During the discussion Wednesday, Martin Dimitor cited a research conducted by the World Bank in 176 countries, showing that 75 of them do not have at all a requirement for minimum capital for the registration of a limited responsibility companies, France being one such example, where a company can be established in one day for the cost of 150 EUR.
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» To the forumComments (4)
Dirk - 22 May 2008 // 17:45:57

This ain't a good idea as many can start a co without even knowing what it is.

500 BGN is hardly enough to pay for the procedure to make an EOOD or OOD. Afterwards... everything is free or what ?

CJB - 22 May 2008 // 16:59:45

I don't think it takes that long, although compared to the UK it takes ages! The delays are caused by having to traipse around from the Court, notary, Bulstat, notary, Court again, notary... A few days spread over a couple of weeks.

Robin - 22 May 2008 // 16:43:31

Actually I would have preferred it if they had concentrated on the amount time it takes to register a company rather than the amount of cash.

What I don't quite understand in countries where no capital is required to start a limit liability company is that essentialy if there is no capital then surely that makes it a "no liability" company. But I guess my understanding is wrong.

CJB - 22 May 2008 // 15:22:34

Good to see this reform implemented: it's long overdue!

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