500 BGN Only Needed to Register Limited Responsibility Company
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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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.