Many liquidation have started and some of them even finished, but you need to check what we at MH Legal recommend to look when you have your company dissolved.
A recent changes to the NRA and NSSI internal ordinances, have affected the liquidation terms. The applications and the respective documents, needed for the liquidation and issued by those two government authorities practically increase the company liquidation with about two months! This is not in help to the solicitors and liquidators who have to explain the delays to the company owners.
The liquidation process
Many foreigners have been setting up limited companies in order to own land in Bulgaria. Now as the year 2012 is approaching, the restriction will be removed and there will be no need of the limited company for this purpose. Many people will prefer to have the property on their own name. So how you can do that? The legal way is to wind up your company and transfer the property on your name.
If the limited company has been set up only for the purpose of owing a land we assume that the company is a dormant one. The easiest way to find that is to ask your accountant if they have filed nil annual accounts. So, if the company is dormant the liquidation should be a straightforward process. The biggest disadvantage of the liquidation is the time frame. The minimum legal term is 6 months. Basically the liquidation process can be divided in the following milestones:
- appointing a liquidator and sorting all outstanding taxes (both state and municipal ones)
- drafting the initial accounting balance report
- announcing the liquidation in the online Commercial register and submitting an invitation to all potential creditors of the company to present their claims
- transferring the property to the capital owners (company owners)
- drafting the final accounting balance report
- de-registering the company from the Commercial register
The longest stage is the waiting period after announcing the invitation to the creditors. The minimum legal waiting period is 6 months. This is why the liquidation lasts that long.
The liquidation process will involve accounting and liquidator costs, state fees and fees for transferring the property to the company owner(s). The final costs depend on the status of the company- are there any problems with it or its assets, how well the company papers were done during the years etc. A quote for liquidation costs (without property transfer fees) for well maintained dormant company would be about £400. If you have a property to be transferred on personal shareholder's name, a further quote will be provided when we review the property documentation and status.
Transferring the property on company owners' name
This could be done in several ways, but the most common are either by simulating a sale (company sells to the company owner) or by transfer as a liquidation share from the company to the company owner. In both cases the property transfer needs to be recorded in the Land Registry.
MH Legal law office provides professional company winding up (liquidation) services. Mr. Milen Hristov, besides being a solicitor, is also a state certified liquidator with the Bulgarian Registry Agency. We provide company liquidation services in Varna region, but also all over Bulgaria.