HOW TO REGISTER A BRANCH
What is a “branch”?
A branch is a legal-organizational form for carrying out a business activity, in which a trader, by relatively separating a part of his activity, carries it out in a place/address, different from the one in which the company’s head quaters is located.
Banks and insurance companies may open more than one branch in a single settlement, including at their headquarters address.
Any trader can open a branch outside the settlement where his head office is located.
The branch depends on the trader in respect to:
✔️ The branch lacks an independent company, and the branch company includes the trader’s company and the additional “branch”
✔️ The branch is part of the trader’s commercial enterprise (and in the event of a transfer of the enterprise, the branch is also transferred). For disputes arising from direct relations with a branch, claims are brought against the traider (as this can also be done at the branch’s headquarters);
✔️ The termination of the trader leads to the termination of the branch as well (the same applies to the declaration of bankruptcy);
✔️ The branch does not draw up an independent balance sheet – the branch of a Bulgarian company keeps commercial books as an independent trader without drawing up a separate balance sheet. (Branches of legal entities that are not traders and branches of foreign entities also draw up a balance sheet)
The branch is entered in the commercial register based on a written application that contains:
-Headquarters and subject of activity of the branch;
-Data on the person who manages the branch and the extent of his representative authority.
-A notarized agreement with a sample of the signature of the person who manages the branch, is also attached.
The establishment of a branch of a Bulgarian company includes:
-Making a decision to establish a branch;
-Selection of the manager of the branch;
-Entry in the commercial register (CR).
The decision to establish a branch is taken by the competent corporate body according to the rules for the relevant commercial company: