MORE THAN 1,000,000 COMPANIES RISK ADMINISTRATIVE LIQUIDATION
"The companies subject to formal re-registration are just over 1,000,000," million, Violeta Nikolova, Director of the Registry Agency said on the Bulgarian National Radio (BNR) yesterday. Under the efficient Commercial Register Act, the deadline for their re-registration is December 31, 2010. If the companies do not start the respective procedure until then fail to submit the necessary documents, they will be automatically wound up.
The solution to this issue is currently in the hands of MPs. In mid-October, the Council of Ministers approved legislative amendments on the proposal of the Ministry of Justice, extending the deadline by six months to 31 June 2011. On 18 October, the Bill entered Parliament for discussion, but has not been moved for adoption so far.
Todor Dimitrov, MP from GERB (Citizens for European Development of Bulgaria) and member of the Parliamentary Legal Affairs Committee, explained that the law would be adopted by the end of 2010 so that the extension of the deadline could come in force. But even if the deadline is extended, not all the companies will be able to re-register. According to the Registry Agency, a little over 285,000 firms have re-registered as of September 2010 and only a quarter of the existing 1,200,000 companies in the country have observed the law for compulsory re-registration. If things come to administrative liquidation, the State will have to pay for it. Sole proprietors will not injure the Treasury, since they will be written off automatically, but the closure of juristic persons will cost at least BGN 1,000 each.
Some time ago the Registry Agency estimated the administrative liquidation at between BGN 60-450 mln and specified that this would block the work of entire courts. On the other hand, the fee for new registration and the issuance of a certificate by courts is done for free. A certificate is issued by court within three days and the Registry Agency extends its stance for re-registration within 14 days.
