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)
Branch registration
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.
Establishment
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:
–The limited liability company (LLC) – by the general meeting of partners, for the sole proprietorship limited liability company (LLC), the decision is taken by the sole owner of the capital
–The joint-stock company (JSC) – by the general meeting of shareholders (or by the sole owner of the capital at JCS) or by the relevant governing body according to whose competence the statute assigned the resolution of this issue (in the order of decision-making by the relevant body );
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