We offer the full range of legal services relating to incorporating a company in Bulgaria. We are experienced in setting up all types of business organisations, including:
In addition, we can assist you to establish:
Our integrated approach and knowledge of multiple overseas jurisdictions allow us to put in place the most suitable corporate structure. We can also advise FDI managers on investor protection and incentives in the context of EU state aid law.
Bulgaria has recently received increasing attention as an onshore destination for launching an entry into the EU marketplace because of its consistent macro stability, its low corporate income tax and wide network of Double Taxation Avoidance agreements and we are frequently required to assisting clients who wish to benefit from this regulatory competitiveness.
Our most recent brochure on company incorporation is available here.
See further here in relation to due diligence.
When contemplating entry into the Bulgarian market, many international businesses choose to participate in a joint venture structure with a local Bulgarian partner. We help such clients to set up the joint venture entity (whether incorporated or contractual) and advise on its operations in Bulgaria from the start. We also provide a range of legal services for clients partnering in such JVs throughout the life of the joint venture, and can draft and negotiate any shareholders' agreements (or joint venture agreements) which may be required.
While the Bulgarian Stock Exchange in Sofia (BSE) has seen reduced initial public offering activity compared to its peak last decade, we are well-versed in the legal and regulatory environment and the underlying EU law related to financial promotions; the public offering of securities; and regularly advise on notification duties, squeeze-outs and the application of the insider dealing and market abuse rules, as well as on day-to-day compliance and transactional aspects.
Again, our special angle is our ability to see clients' legal needs in an international perspective, and to assist clients in identifying the best fit for the regulatory and financing needs; to satisfy international investors; or to help them minimise cross-border regulatory risk.
We also advise companies conducting business in Bulgaria, who are either listed in or are contemplating listing their securities on Regulated Markets (within the meaning of the Markets in Financial Instruments (MiFID I) Directive (2004/39/EC), or self-regulated markets, (in particular, AIM, the Main Market of the LSE and growth markets such as NASDAQ OMX First North).
We are able to advise on all aspects of the acquisition of a Bulgarian company or business, including both the preparation and negotiation of a share or asset purchase agreement, and also the range of ancillary documents typically required (e.g. Heads of Terms, Confidentiality Agreements, board and shareholder resolutions, disclosure letters and assignment agreements).
On a day-to-day basis, this may involve:
Stopping the improper use of insolvency proceedings
A client of our dispute resolution team (led by Kamen Shoylev and Yordan Neshkov) was recently the subject of an indirect claim by a Bulgarian bank with which this client has been engaged in a multi-stage dispute. Unusually, the bank acted through a vehicle registered in an African state, which made an unfounded claim in the tens of millions of euros against our client and sought the commencement of judicial insolvency proceedings against this client. The offshore vehicle was chosen to isolate the bank from liability and create certain evidential difficulties for our client's representation.
NBLO succeeded in terminating the insolvency proceedings, with direct loss fully awarded to our client. A second claim to recover our client's indirect losses is currently under way.
Where targeted in this way through insolvency proceedings, a company may be prevented from trading properly (e.g., by suffering restrictions on its financing or being unable to participate in public procurement).
Through our considerable experience in insolvency litigation, both entirely domestic and where there are European and cross-border elements, we are ideally placed to assist clients in resisting such attacks and recovering the real and considerable losses that may be suffered.
© New Balkans Law Office 2020