Management change
The subject of this article is to explain the process of management change of a Bulgarian company.
The representative of a Bulgarian company has various duties and responsibilities depending on the type of company form. The representative in the limited liability company is called a manager and the one in the joint stock company is called a director. In the JSC we also have a board of minimum 3 (three) directors in comparison with the LTD where it could be only one. At every point of the existence of the company, the manager or the director can be changed with another one.
In case you want to leave the company without a manager at all then you need to follow a very different procedure. More information you can find here.
Changing the representative of a Bulgarian company is a process which shall meet several requirements. Depending on the company form the shareholder/s shall take a decision to choose another manager who can replace the previous one or be added as a second manager. With some recent changes in the law, the government decided that this decision shall be notarized for security reasons. This obligation can be avoided if the articles of the association contain some specific provisions.
In order to apply in the Trade register for registering the changes of the management, the shareholders have to sign new updated Articles of Association (with some exceptions) and the manager shall sign few declarations and a power of attorney. Of course as any change of circumstances also a state fee shall be paid.
Keep in mind that, according to the Bulgarian law the manager of the Bulgarian company except a local one can be a non-resident person who holds EU or non-EU citizenship.
The whole process takes around 5 (five) working days from signing the whole documentation and submitting it in the Bulgarian Trade register.
Changing or replacing the manager of a Bulgarian company is an effective procedure to boost your business but it shall be done from professionals as it can also be risky, especially when it comes to releasing or not from the responsibility of the previous manager.
Innovires law firm can fully assist you with management changes of your Bulgarian company. Our lawyers can take the representation in front of the Trade register and submit the changes of the manager.
Contact us in case you need additional information regarding the management changes of a Bulgarian company.
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