How to Register a Foundation in Bulgaria: A Comprehensive Guide
Setting up a foundation in Bulgaria can serve a variety of purposes, from supporting charitable causes to funding educational initiatives or promoting cultural heritage. Foundations operate as legal entities, and their establishment is governed by specific regulations under Bulgarian law. This guide walks you through the essential steps and legal requirements for registering a foundation.
What is a Foundation?
A foundation is a non-profit organization established to pursue public or private benefit goals. It is a legal entity that operates independently of its founders and is often used to:
- Promote social causes.
- Provide grants or scholarships.
- Support cultural, educational, or scientific initiatives.
Foundations in Bulgaria can be set up to serve either public benefit or private benefit objectives, with public benefit foundations enjoying additional tax incentives.
Steps to Register a Foundation
- Define the Purpose
Clearly outline the mission, goals, and activities of the foundation. The purpose must align with the law and specify whether it serves public or private benefit.
- Draft the Articles of Association
The Articles of Association (or Founding Deed) is a key document that outlines:
- The foundation’s name.
- Its purpose and goals.
- The structure of governance (e.g., board of directors).
- Rules for managing assets and funding.
- Choose a Name
The name of the foundation must be unique and distinguishable. Conduct a search in the Commercial Register to ensure the chosen name is available.
- Determine the Initial Capital
Foundations require an initial endowment to operate. The minimum amount of capital is determined by the purpose and scope of activities.
- Appoint the Governing Body
The foundation must have a governing body (e.g., board of trustees or directors) responsible for decision-making and management. Their responsibilities and terms of service must be clearly defined in the Articles of Association.
- Register with the Registry Agency
Submit the following documents to the Registry Agency:
- Application form.
- Articles of Association.
- Proof of initial capital (e.g., bank statement).
- Minutes from the founding meeting.
- Declaration of consent from members of the governing body.
- Other supporting documents, depending on the foundation’s objectives.
Key Legal Requirements
- Public or Private Benefit: Foundations must specify whether they aim to serve the public or private interest.
- Asset Management: The foundation must demonstrate how its assets will be managed and used to achieve its goals.
- Tax Registration: Public benefit foundations may qualify for tax exemptions but must meet additional transparency and reporting obligations.
Why Register a Foundation in Bulgaria?
- Tax Incentives: Public benefit foundations may enjoy tax advantages and attract donations more easily.
- Legal Protection: Registered foundations operate as independent legal entities, protecting the founders from personal liability.
- Credibility: Registration increases trust among donors, partners, and beneficiaries.
Challenges in Foundation Registration
- Complex Documentation: The registration process involves drafting detailed and legally compliant documents.
- Administrative Oversight: Public benefit foundations face additional scrutiny and reporting requirements.
- Compliance: Ensuring ongoing compliance with laws governing non-profits is crucial for maintaining tax advantages.
How Legal Frame Can Help
At Legal Frame, we specialize in assisting clients with the registration and legal maintenance of foundations in Bulgaria. Our services include:
- Drafting Articles of Association.
- Preparing and filing all necessary documents.
- Advising on governance and compliance requirements.
- Representing your foundation during the registration process.
Why Choose Legal Frame?
- Experienced Team: Our lawyers have extensive knowledge of Bulgarian non-profit laws.
- Personalized Support: We tailor our services to meet your specific needs and goals.
- End-to-End Assistance: From drafting documents to handling post-registration compliance, we provide full support.
Contact Us Today
Starting a foundation is a meaningful endeavor, and having the right legal guidance ensures a smooth process. Contact Legal Frame for expert assistance and make your foundation’s vision a reality.
