The General Partnership in Bulgaria
The general partnership (Bulg. Събирателно дружество, short: "с-ие") is an association, which is founded by two or more persons that exert commercial business requesting a commercial manner of business operations. According to Article 76 of the Bulgarian Commercial Code (Bulg. Търговски закон, short: „ТР“), the associates take full responsibility for their association due to their unlimited liability.
Legal name of the association
The legal name of the general partnership must include the second names or the legal name of one or more of the associates and the term „Събирателно дружество“or the easily comprehensible abbreviation "с-ие".
Articles of the Association
Article 78 BHG provides the necessity of the notarisation when signing the articles of association.
Constitutively, the articles of association include the following information:
- The name, the place of domicile, the legal name, the place of business, the actual identification code of the members (EIK), the addresses of the associates;
- The legal name, the place of business, the address of the business management, the object of the association;
- The art and amount of contributions paid by the members of the association;
- How the gains and the losses will be divided among the partners;
- The manner of the business management and the substitution.
Costs for the registration of a general partnership in the commercial register in Bulgaria
- Registration of a new general partnership: 130 BGN
- Registration of a new general partnership in electronic form: 60 BGN
Inner relationships between the associates
The relationships between the partners are to be regulated within the articles of the association which have to follow the regulation of Article 87 BHG. If the articles of the association state that the associates’ resolutions have to be decided with a majority, each associate has a vote. The resolutions are to be recorded in the Minute book.
Liquidation of the association
The reasons for liquidation are given by law in Article 93 BHG.
Relevant reasons for liquidation are:
- The expiration of the agreed time-limit and other reasons provided by the contract;
- The agreement of the associates;
- The insolvency of the General Partnership;
- The death or lack of legal capacity of one of the associates if nothing else is provided;
- The request of an insolvency administrator if one of the associates becomes insolvent;
- The dismissal of one of the associates,
- The order of the court in cases provided by the law.