Hiring HGV drivers from Bulgaria

truck drivers from BulgariaHiring HGV drivers from Eastern Europe (Bulgaria, Romania, Lithuania, Latvia etc) can be a major benefit for any UK or Irish haulier. The obvious reason for this is the lower wage the HGV drivers from those countries will agree to take and the time spend on the truck will be more compared to their Western European colleagues.

How to hire HGV driver from Bulgaria

First of all, make sure your country allows Bulgarians to be employed. UK will allow Bulgarians to be employed as from beginning of 2014, so if you are a UK company, you might want to wait few more months.

However, there is easier way which is available now - it is to make a Bulgarian subsidiary of your company and get a EU operators licence for your Bulgarian company. This will save you a lot in terms of cheaper truck insurance (its about £1500/year in Bulgaria) and no UK road tax. If you wish you can call us on 00359 52 605997 or email Milen Hristov to milen@mhlegal.eu to get more information about obtaining operators licence from Bulgaria.

If you decide to get o licence from Bulgaria, you can register your trucks on the name of the Bulgarian company and then hire Bulgarian drivers (or any EU citizen as a general).

Benefits for hiring HGV drivers through a Bulgarian company

[list2]

  • Bulgarian legislation doesn't require work permits if you employ any EU member state citizen. This reduces the paper complications and bureaucracy costs.
  • Bulgarian basic truck driver gross wage is €300/month. This means that in case of legal complications your expenses will be much less. Normally compensations in Bulgaria are tied with the employment contract wage.
  • Paying the basic wage doesn't mean your drivers will receive only this. There is a legal way to pay them properly and still keep all other costs to the bare legal minimum.
  • Bulgarian legislation is quite favourable to the employers. If your employment contracts are drafted by an experienced solicitor, there will be no problems and legal complications when you release drivers from their position.

[/list2]

It's hard time for the road transport industry, so the details in this short blog post should provide some ways for your business to cut operational expenses and take advantage of the EU legislation, yet staying completely legal. Call out office at 00359 52 605997 or email to milen@mhlegal.eu for more details and quotes for getting your EU operators licence from Bulgaria.

Unpaid council and state tax and the consequences

council and state tax bulgariaWe had few clients who have bought houses in the villages around Varna.  They purchased a house as an impulsive buy and never really had the intention to live in it. After they left for UK, the house was left and never maintained. Often the holiday home buyers don't think about the tax consequences of owning a property abroad. It's not just having a place in the sun.

Obligations of the property owner in Bulgaria

Whether you buy your property in Bulgaria on personal name or through a company, you have to submit a declaration to the local town council. The deadline for submission is two months from the date of the title deed signing. The reason for this declaration is to notify your local town council that you own the property and all taxes and tax notices should be send to you for payment. The address for correspondence in the tax declaration should be a Bulgarian one. Town councils don't send mail abroad.

After the tax declaration is submitted, the council will review it and depending on what type of property you have bought and what details you have declared, they will calculate the annual tax and garbage fee for you.

This is the place to mention the incompetence of some council administrators. We had a recent case where the property in question was named by the builder "building for seasonal use". The building had to be sold as a holiday apartments building and therefore was named 'for seasonal use'. You can't really do much things in Sunny Beach in the winter, can you? However, the the town council asked for double council property tax because according to them the apartment was used for commercial purposes. Despite the explanation that the apartment is not used for rental, the administrator set the tax as double. In this case, a legal appeal of the council tax notice had to be made by a solicitor.

The garbage annual fee is the other financial burden you should be aware of. The amount of the garbage fee depends on what you have declared but also on the area and the type of the property. If it is a commercial property (e.g. warehouse) it's likely your garbage fee to be bigger.

The above two financial obligations of the real estate owner in Bulgaria are the major ones, so bear in mind their payment early each year (normally by the end of March).

A non-financial requirement for people who own property on personal name is to register for Bulsat number in the Bulstat Register. The registration has to be done in 7 days after the property is bought. If you fail to do that, you will be fined.

What happens when you don't pay council tax in Bulgaria

If you don't pay your council financial obligations (council property tax and garbage fee) you will be sued by the town council. Collection of public financial obligations has been made quite easy by the Tax and Insurance Proceedings Code and the Local Tax and Fees Act. There are simplified procedures to get court orders and enforcing the court order can be done either by a public or private bailiff (enforcement agent). Naturally the bailiff will come for your assets in Bulgaria - the property. You will be send notices to your Bulgarian address and if there's no one to receive them, the procedures will progress until the property or inventory of your house is put on public auction.

How you can prevent your property to be put on public auction? Simple, just point in your tax declaration the address of your solicitor as correspondence address with the municipality. This will make sure you get all notices before it's not too late and your solicitor will respond to the notice on time.

How about state tax and other financial obligations?

If you own a property through a company you have to file nil tax declaration (unless your company is trading) and annual return every year.  Missing the deadlines for those two, will bring fines to your company and the following legal consequences for collection of these fines. The money collection will be done in the same manner as described above, so again, make sure you have a solicitor overlooking your company matters in Bulgaria. This is recommended even if your company is not trading.

If your company is trading, you have to mind also the VAT returns obligation (for annual turnover of 50,000 and above) . VAT returns are made monthly in Bulgaria, so missing a return can bring taxman in your company office and you could need again a solicitor to appeal the fines.

We at MH Legal offer solicitor services for overlooking your personal and company matters in Bulgaria. You will never miss a notice or deadline. If you receive one we'll make sure it is responded on time and in a professional manner. Contact us on 00359 52 605997 or email me to milen@mhlegal.eu to get a quote for such services.

Purchase of debts (factoring)

In 2008, I was talking about the development of the factoring Market in Bulgaria. The credit crisis was in its peak and the few factoring companies in Bulgaria were progressing in their business. These factoring companies were sole owned by few banks. However there were also other private limited companies which deal mostly with debt portfolio purchases and debt collection. The latter have increased their market share due to the fact that they were sub-contracted by the banks to collect bad debts and foreclosures expenses.

After the creation of the property public auction website, now the debt collection business is going even further by setting up a debt portfolio auction website.Unfortunately the website is only in Bulgarian, probably the owner assuming that only Bulgarian companies will be interested in the information.

If you represent a foreign company, which plans to expand to the Bulgarian market, you need to consult a solicitor/lawyer with the specifics of the factoring market. The process of debt purchase and sale has its local Bulgarian statutory requirements, which doesn't match the international factoring practice. Call our solicitors on 00359 52 605 997 or email to Mr. Milen Hristov at milen@mhlegal.eu if you have a specific enquiry regarding the factoring business in Bulgaria.

Company Liquidation of Your Bulgarian Company

wind up bulgarian company

As Bulgarian qualified solicitors, we were among the first ones in 2008 to alarm the foreign property owners of the compulsory liquidations that would follow if they had fail to re-register their holding limited companies. Now the liquidation process has been initiated and there are still property owners that have no idea of the legal process going on in Bulgaria. Therefore this blog article is to alarm all those property owners, who has limited companies and haven't re-registered them by the end of 2012.

I hear many 'legal advice' on expat forums such as that you can sell the property and just abandon the company; or you can make a fictional sale of the property to yourself and then liquidate the company. Such options may seem tempting, but they are totally wrong and let me explain why.

Transfer of property from the liquidated company to own name by fictive sale

This is in fact what 99.9% of the solicitors in Bulgaria offer to their customers. As a company owner, you would probably hear that this is the only way to get all the liquidation mess sorted, but you are wrong. This is just an expensive workaround and may create even bigger accounting mess than you have thought - not only in Bulgaria but with regard to your UK matters too.

Most of the solicitors will offer a fictive sale which will be certified at the tax value of your property. Indeed, this reduces the transfer costs to the bare minimum, but what happens to your company accounting? A total mess. Let's say you have bought your rural house for £25,000 (or for £4000, but have put an extra £10,000 for renovation). Your solicitors offers you a fictive sale  for £1500, which your liquidated company will receive as purchase price. First of all cheating of the tax office is not a good idea. False declaration of facts, besides being a criminal offence, is also a tax evasion, so if you are caught our NRA will notify probably HMRC too. While you think you can escape Bulgarian authorities (especially foreigners who live in Bulgaria have this illusion), HMRC are far more persistant and sneaky.

Abandoning the company after property sale without initiating liquidation

This is one totally wrong idea! Even if you plan to leave Bulgaria for good, the EU legal enforcement rules can follow you in any EU member state and enforce the due taxes, fines etc. Moreover  if you are among the people with un-reregistered companies, you can't sell you property, as the  Commercial register Act explicitly bans property deal with un-reregistered companies. Such deals are considered void and null by the statutory rules.

The right approach to liquidate a Bulgarian company

First of all, you should appoint a solicitor who knows what he is doing. Not all solicitors are specialising in company liquidation, so be careful whom you instruct. The property transfer to your own name, can be done as part of the assets distribution to the company shareholders. It is not a sale and it is part of the specifics of the company liquidation procedure. We are specialising in company registrations and liquidations and if you want to liquidate your Bulgarian company, give us a call at 00359 52 605997 or email me to milen@mhlegal.eu. We will review your company, subject to liquidation, and will provide a quote for the total expense for closing the company and transferring the property to shareholders' names.

How to Make a Bulgarian Will

make a bulgarian will solicitorMany Britons and Irish who own properties in Bulgaria are turning to me with the question how to make a Bulgarian willThere is a huge difference between the Bulgarian Wills and Probate process and the UK one. That's why the Bulgarian will has to be drafted as much close to the UK requirements as possible. Before we go through the details how you can make a will in Bulgaria, we have to clarify some jurisdiction specific topics. If you have already made a will in UK, check below if it is not in contradiction to the statutory requirements in Bulgaria.

What you can put in your Bulgarian will

As you are probably a UK citizen, your will is generally regulated by the statutes of  the UK laws. Your UK will can contain how your  bank accounts, movables, intellectual property etc. can be disposed after your death. However, a general legal principle provides that any rights and obligations concerning a real estate property are regulated by the jurisdiction,where the property is located. Following this principle, you can see the specific regulation in the Bulgarian International Private Code:

[blockquote]Article 89 (2) Succession to immovable property shall be governed by the law of the State in which the said property is situated[/blockquote]

However this could be interpreted also for the probate process (death without will). Therefore the Code also provides explicit regulation, so that wills are valid, namely:

[blockquote]Article 90. (1) The capacity of a person to dispose of the property thereof by means of a will (making and revocation) shall be governed by the law applicable according to Article 89 herein.[/blockquote]

As you can see, Article 90 refers the will regulation to Article 89 and we can clearly see that if you want to include your Bulgarian real estate property in a will, the latter should be made in Bulgaria, according to the statutes of the Bulgarian law.

How can I make my Bulgarian will

It's easy to make a Bulgarian will. We, at MHLegal solicitors can draft your will, so that it conforms with the Bulgarian statutory requirements. Moreover we can make your will bilingual - both in Bulgarian and English language, because many translators in Bulgaria are just not aware of the legal terminology, which on the other hand can bring more troubles than benefits for the heirs of the deceased.

When you instruct our solicitors to prepare a draft of Bulgarian will for you, we will look at all aspects of the process, including going through a very simple process of estate planning in Bulgaria. We will look at your current property status - whether you own the real estate on your personal name(s) or through a limited company and will suggest the best way forward.

After the final draft is approved by you, you will have to attend a notary public office in Bulgaria, so that the will is certified. There are two types of will in Bulgaria:

[list2]

  • Handwritten will and
  • Notarised will

[/list2]

The first type of will cannot be used by foreigners unless they can write, speak and understand Bulgarian. The statutory requirement for a handwritten will is that it is written in Bulgarian language. Therefore we assume most of the English who own properties in Bulgaria cannot use this option for their Bulgarian will. Even if someone considers that he is fluent in Bulgarian, a future will dispute will complicate the matter as the heirs will need to prove if their ancestor had been fluent in Bulgarian indeed.

The second option for a Bulgarian will suits our needs perfectly. There are a few benefits of the notarised will before the handwritten one.

First of all, the notarised will is witnessed by the notary public, who has official witness functions in Bulgaria. Therefore any disputes of the will are to be more difficult. Secondly, the notary keeps a book of all notarised wills e.g. there will be an original at notary's archive after the person's death. Even if the original is lost, the heirs can always get a copy from the notary's archive.

And thirdly, the wills are registered at the Registry Agency.  The wills have to be signed also by two witnesses. Every person has to make a separate will e.g. a married couple cannot make a single will.

Claiming and Disputing a Bulgarian will

Claiming the will is as simple as using the original for disposal deals. Of course this has to be done after the death of the person who made the will. Normally the authority where you present the will,  requires a death certificate, legalised in UK, if the person died in the UK. If you will be using the will in UK (e.g. probate court), the Bulgarian will has to bear an apostille issued by the Bulgarian Ministry of Foreign Affairs.

Disputing a will can be done by the lawful heirs of the deceased and can be initiated only before the Bulgarian courts.

If you want to make a Bulgarian will, call our solicitors at +359 52 605 997, or email to milen@mhlegal.eu Alternatively, you can use the contact form on our website.

Can I swap my Bulgarian house for another one?

swap my Bulgarian house

Have you ever been in the situation when you buy a holiday home overseas but you haven't been sure if you want to live in it? May be not, but may be you will some time in the future. In this short article I will explain if it is possible to swap your Bulgarian house for another one, also located in Bulgaria, but on different place.

Why would you want to swap a Bulgarian house for another Bulgarian one?

If you have already bought a rural house but haven't started renovating it (let's say in Provadia area), you might have realised that there are no other Brits (or on the contrary - there are too many Brits) in the area so you want to move to another beautiful place in Bulgaria where you like it more (let's say Balchik area, because it's closer to the Black Sea coast). You search on the Internet and find another person in your situation who sells his house because he wants to move to a different place in Bulgaria. This would be a good opportunity just to swap both houses. Instead of  each one selling his own house separately  and pay double notary fees, stamp duty, solicitor fees and other expenses, you might want to make a single property swap deal.

How does the property swap work in Bulgaria

You Bulgarian solicitor must prepare a draft of the property exchange title deed. The title deed will serve as ownership title to both parties as the property exchange will happen in one go. There is no need the deed to be signed by two notaries. The statutory requirement is that the parties chose just one notary public who will certify the property swap. This could be a notary from either of the areas, where the properties are located. It's up to the parties and their Bulgarian solicitors to decide which notary public will use.

Normally one of the biggest financial burdens when one buys property in Bulgaria is the stamp duty. This is a one-time payment to the local municipality and is due upon transfer of property ownership. Normally, the stamp duty is up to 3% of the value of the deal. Luckily, if you make a property swap, you will be able to chose in which of the municipalities you can certify the deal. Whereas the notary fees are the same allover Bulgaria, the stamp duty varies depending on the municipality. Therefore you can chose to certify the deal in the municipality where the stamp duty is lower. Moreover, you will pay it just once since you are signing just one property deal.

What if the houses have different value?

Nobody wants to give more and receive less. This is also valid for property exchanges. Therefore the title deed should include a clause for an additional payment, so that the lower value house owner received the same property value and the other one e.g. both parties receive the same value as the one they transfer. If money has been transferred and the amount is above 10,000 bulgarian Levs, it has to be paid by bank transfer. This is a statutory requirement. Normally a bank statement has to be handed to the notary who certifies the property exchange deal.

It will take a while before you receive the title deed original, as the deed has to be recorded in both municipalities' Land registries. Normally it will be about 2 weeks before you can get your title deed original.

If you are up to a complicated property deal or you want to make a house/apartment swap and require professional solicitor help,  give us a call at +359 52 605 997 or email me on milen@mhlegal.eu.

Liquidation of un-reregistered companies now has started

close my company and transfer property on own nameThe long wait for the compulsory company liquidation of un-reregistered companies is now over. It has been one year and four months and the Registry Agency is finally ready with the paperwork and the procedures for liquidation of un-reregistered companies. The Company Register Act has been amended accordingly end of 2012, so technically the liquidation could have been started.

The problem with un-reregistered companies is that the Brits who have bought properties before 2012, bought it though a limited company and because they failed to re-register the limited company, it is now subject to compulsory liquidation. This means that there is a real thereat that those Brits can lose their property unless they take control of the compulsory liquidation process.

Liquidate your limited company and keep the property on your own name

Owners of un-reregistered limited companies now can take control of the wind up process by submission of application for appointing a liquidator and start of the liquidation process. As solicitors who specialise in liquidation and having Milen Hristov, who officially registered liquidator in the list of liquidators in the Company Register of Registry Agency, we are well prepared to handle your limited company liquidation. We are constantly looking for Company Register Act amendments and are ready to react immediately  and accordingly so that we can protect your rights in the liquidation process.

If your company is un-reregistered and you don't know what to do, contact us and instruct our solicitors to initiate the liquidation. Our current clients want either to sell their property since they are not interested in owning anything in Bulgaria anymore, or they just want to transfer the company property to their own name.

Transferring the company property to own name

Many Bulgarian solicitors offer the service 'transfer property to own name', but what they actually offer is 'sale' of the company property to own name. This is basically a fictive sale where your company transfers the company property to the shareholders in the form of title deed sale document. Because of the high conveyancing costs, the sale price is reduced to the bare minimum - the tax value of the property. However this fictive sale is dangerous as this could trigger some negative  consequences such as tax checkes by the National Revenue Agency due to the suspiciously low sale price and even can trigger international tax evasion checks with collaboration with the HMRC. As a second negative side of this fictive sale we should point out the criminal liability of declaration of false facts in the title deed. Pursuant to Art .313 of the Criminal Code the declared lower price of the transfer can bring criminal liability to the person signed the title deed i.e. the company shareholder and the 'buyer'. Nobody wants to go to prison for saving a few pounds of a property transfer to own name and liquidation of his limited company.

The proper way to transfer property to own name in the company liquidation

No need to use fake sales if you want to keep the property to yourself. Our liquidation professionals will use the regulations of the liquidation procedure to transfer the property to your own name. The procedure is not so familiar among the regular conveyancing Bulgarian solicitors so that's why many of them will deny its existence. This doesn't mean you have to use the fake sale. For the amount of £600 (*subject to preliminary documents review) you can liquidate your company and transfer the property to your own name.

Call us or email us for a review of your company documents and to get a final quote from us for liquidation of your limited company and transferring the property to your own name.

Bulgarian property solicitors' role in the conveyancing process

Bulgarian property solicitorMany Brits who buy property in Bulgaria don't bother instructing a Bulgarian property solicitor. This is either due to the belief that the estate agents in Bulgaria are regulated as in UK (which is not true) or simply because they don't believe that something wrong could happen.

Real estate agents want just to sell

Real estate agents in Bulgaria are not regulated, so their only goal is to sell you anything. They will probably show you tons of properties and will try to persuade you to buy it. They don't have ethical code, nor you can file a complaint against them in a special professional regulatory body. There used to be an idea to codify the rights and obligations of real estate agents in Bulgaria, but it failed. Whether this was on purpose or not, it's hard to say.  This situation creates a loophole in the law, allowing all kind of property scam. In this case it is a wise idea to instruct a property solicitor, who will initiate a full property research on the deeds and seller.

Instructing a Bulgarian property solicitor

Bulgarian and UK conveyancing process have many similarities, but also a huge amount of differences. In that connection your current UK solicitor is unlikely to be able to act diligently and replace entirely the legal background of a Bulgarian qualified property solicitor. Your UK solicitor could act in terms of supervising the application of the general principals of conveyancing and watch out for any suspicious legal actions performed by the instructed Bulgarian solicitor. Also your UK solicitor may assist you in certification of the conveyancing documents, needed to complete the purchase or sale of your Bulgarian property.

Choosing a qualified Bulgarian property solicitor is not easy. You can find many recommendations in Internet property forums like My Bulgaria, but there are also many estate agents/solicitors who stand behind  fake Brit profiles and basically recommend themselves. The easiest way to find a qualified Bulgarian property solicitor is 'the word of mouth' method. If you have any friend or relative who has been through the conveyancing process and have used a Bulgarian solicitor, just ask for the contacts of this solicitor.

What exactly does the property solicitor in the conveyancing process

It really depends on what you have instructed the solicitor for - purchase or sale. In the general case of purchase, the solicitor will check the current status of the property you are buying: if there are any registered encumbrances such as mortgages, liens, injunctions, pending lawsuits etc. The solicitor should check also the authenticity of the current owner's title deed and if the seller is the actual owner and if he/she has the full powers to dispose the property. If there are any suspicious facts in documents, the solicitor will require additional information and/or documents from the seller in order to establish if it is safe to buy this property or not.

On a separate note, the draft of the new title deed can be prepared by your solicitor too. Many notaries don't bother preparing the title deeds so in this case it is mandatory your solicitor to prepare the title deed draft. Even if the notary prepares the title deed draft, your solicitor should review it in order to  confirm that what you will be signing is actually what you want to buy and the terms of the purchase are the same as agreed with the seller.

[infobox type="attention"] A note to those who rely only on notaries when buying property:  Notaries are not obliged to check for encumbrances on the property, subject to the purchase. They only are obliged to check the ownership status. In that sense relying only to a notary for the conveyancing is not a wise move. [/infobox]

If you need a qualified Bulgarian property solicitor, call us or email us for a quote for our services.

Collecting outstanding maintenance fees from Condominium owners

collecting condominium maintenance feesHoliday apartment owners find themselves in the gray area of Condominium regulation. Most of the holiday apartments are located in the so called closed complexes (also called gated apartment complexes or aparthotels), but the Condominium Ownership Management Act (COMA) dedicates only one article to those kind of buildings. This is quite insufficient, having in mind the big amount of such buildings across Bulgaria - mostly located in Black Sea resorts and the ski resorts.

The problem with condominium common parts maintenance fees

COMA has been drafted mainly to regulate residential condominium buildings, where residents live permanently in the building throughout the whole year. Therefore payment of common parts maintenance is not an issue since all residents are using the common parts of the building e.g. staircase, lifts etc. The Act provides an exception for those owners who don't normally inhabit their apartments. Pursuant Art. 51 they have the options to pay less or even not pay at all any common parts maintenance fees.

The situation with the holiday apartment buildings is quite the opposite. These buildings are mostly uninhabited during the year and owners are either renting out or using the premises themselves only in the high holiday season - in the summer for Black Sea properties and in the winter for mountain properties.

This of course creates the problem about who should pay for maintenance of the common parts in case no one is living there permanently. The loophole of Art 51 COMA creates the option of ALL apartment owners to claim the exception and not pay their common parts maintenance fees. The moral dilemma is if no one pays, then how the building should be maintained and stay in proper condition? Surely all owners would like the building to be attractive so they can rent out their premises. Moreover, if most of the apartment owners decide to pay, even if they don't reside there permanently, there will be always owners who would not pay. This of course could be legal, but not moral, as the other apartment owners are not obliged to bears other owners' financial liabilities.

Collection of unpaid condominium maintenance fees

Whether non-paying owners claim the exception or not, the management body of the Condominium Owners Association (or Condominium, depending on the structure) can enforce the payment obligation of every owner. COMA provides the right of the chairman of the management committee (or the manager) of the condominium to apply for payment order in the local District court for collection all outstanding maintenance fees. The court can issue the payment order approximately within a month and the order can be enforced through a state or private enforcement agent.

Despite some of the owners can claim the non-payment exception in Art. 51, there is a legal way to enforce collection of maintenance fees from such apartment owners. The fact that they are not living permanently in Bulgaria is not a problem as the court order can be enforced in all European Union member states. All legal expenses the Condominium makes will be accounted on the name of the debtor and will be collected from him - including the fees you will be paying to your solicitor.

Instructing your solicitor to initiate court debt collection

Before you instruct your Condominium solicitor, you should have prepared all relevant documentation, including the minutes from the General Meeting, where the amount of the common parts maintenance fees are set. This amount of the maintenance fees has to be set by a decision of the General Meeting of the condominium. If the GM hasn't set a fees maturity date, the condominium manager should send a notice to all non-paying apartment owners. These are just preparatory proceedings, so the actual court proceedings are successful. If the preliminary actions haven't been done or haven't been done properly, the court proceedings will not be successful. Again, you should pass all relevant documentation to your solicitor who would advices you both on the preliminary work that needs to be completed and on the following court case legal work.

If you require a legal consultation on condominium legal case, feel free to contact our solicitors team.

Airline Licence and Air Operator Certificate (AOC) from Bulgaria

airlince licenceStarting an airline business is not so difficult as it seems. There are few things to consider when you decide to get an airline licence and the first one is obtaining an Air Operator Certificate. There are some prerequisites before you apply for AOC. The first one is registration of a air carrier company. You can either register a Bulgarian company or apply though an already registered company, based in another EU member state.

Initial requirements for applying for Airline Operator Licence

The law requires that the company keeps a minimum capital of 160,000 BGN (about 80,000 euros). This capital needs to be put as initial registered company capital. The distribution between the shareholders is not regulated i.e. it can be as agreed between the company shareholders.

Before you operate, you need to obtain an Air Operator Certificate on the name of the company. This certificate is issued as a confirmation that the company complies with all legal air operator's requirements for:

[list3]

  1. Organisation and Infrastructure
  2. Quality system
  3. Operations manual
  4. Training and checking
  5. Maintenance
  6. Records
  7. Equipment
  8. Pre-flight preparation
  9. Release of flight/dispatch
  10. Flight inspection
  11. Navigation
  12. Flight documentation

[/list3]

All the details about the aforementioned subjects are mainly technical and workflow processes documentation and has to be available upon applying. The inspector from Directorate General "Civil Aviation Administration" has to check documentation's conformity with the current legislation before the AOC is granted. The technical documentation is tailored for the particular company, depending on its size and needs.

The air carrier company will also need to have a general third party liability insurance. Estimating costs of such insurance is available only upon request from the client, as it depends on the company size, needs and activity (carrying passengers or cargo).

Buying or Leasing Airplanes

The company will need to have at least one leased or own airplane before it applies for AOC. If the company will be leasing a plane it will have to pay a fee of 1000 BGN (about 500 Euro) per plane, for registering it in the special Airplane Lease Register, held in the Directorate. The state fee for obtaining an AOC is 10,000 BGN (about 5000 euros).

Term of the AOC and Airline operator licence

The AOC is granted initially for 12 months and can be further extended for 2 more years. Every year after the first one, the company will be subject to thorough checks by the inspectors of the Directorate. The company will have to prove financial stability. This is quite a subjective matter, but generally the air carrier company accounts has to be verified by a certified charted accountant/auditor and the auditor has to confirm that the company is financially stable. The auditor's fees depend on the particular auditing company/professional. A further quote for this service is available upon written request.

After the air carrier company obtains the AOC, it needs to apply for air carrier licence (airline operator licence). This will enable it to actually fly the airplanes. The state fee is 1500 BGN (about 750 euros). The licence term is indefinite, but the air carrier company needs to renew its AOC because it is a prerequisite for holding the air carrier licence (airline operator licence). The fee is the same, no matter if you apply for general licence or area-specific licence.

Our fee for handling the process and the work concerning issuing both licences (AOC and airline operator licence) is available upon email or phone request. If you need assistance with the plane leasing documentation (review of lease contracts, make legal suggestions and amendments to the contracts etc.) our lawyers can assist you in this matter too.