Sole Limited Liability Company registration
Tips and steps for Sole Limited Liability Company registration
Starting your own business is really exciting, aside from the stress around all the preparation. All would-be entrepreneurs focus their energies on strategizing, brainstorming, and creating business plans, missing the administrative challenges that lurk even before the launch. The registration of a sole limited liability company with a capital of 2 BGN may seem easy, but additional regulations will begin to emerge, moving us away from the entrepreneurial career. Of course, nothing is impossible, especially if we manage to seek legal and administrative advice from the relevant companies in time, which will help us overcome the obstacles on the way to the final registration of the LTD company.
What do you need to know before registering an LTD company?
Before getting acquainted with the stages of registration in the sole limited liability company, it is necessary to define the concept. This is a company which is a variety of limited liability company with the characteristic that the company and all its capital belong to a single person. The minimum capital required for registration of the company is 2 BGN which needs to be deposited in the Special Collection Account of the company. In the case of a higher amount the rest of the money can be withdrawn or used for working capital after the company`s registration.
While years ago the ST (Sole Trader) was a highly preferred legal form of company, before the last decade the sole limited liability company registration topped this ranking. More and more owners prefer to start their business relying on this legal form for registration due to its perfection from the point of risk. While the sole trader is responsible for any liabilities with its personal property, anyone who choose the registration of the sole limited liability company is only responsible up to the amount of their capital investment. This is just one of the advantages of registering a sole limited liability company , which are not organized solely to minimize risk.
Registration of a sole limited liability company - advantages and disadvantages
We have already noted that upon registration of a sole limited liability company, the owners are not liable to the creditors for the company's liabilities. This is also the main reason why people choose a sole limited liability company registration over other legal forms. Another prerequisite that brings out the registration of a sole limited liability company as the preferred form is the low expression of the minimum capital. The registration of a sole limited liability company is a fact with an investment of only BGN 2, which is completely achievable for absolutely everyone. In addition to the minimum capital, the registration of a sole limited liability company fascinates us with low state fees when entering the Commercial Register, as well as a corporate tax of only 10%. The structure and establishment of a sole limited liability company are also extremely simplified.
Of course, the registration of a sole limited liability company also has some disadvantages compared to other types of companies, one of which is the procedure for deleting a sole limited liability company - the liquidation of a sole limited liability company requires a minimum of 6 months.
Necessary documents for the registrating a sole limited liability company
Every registration of a sole limited liability company follows a strict procedure and requires the preparation and submission of the relevant documentation by the future owner of the company. The first step in registering a sole limited liability company is the preparation of the founding act and founding protocol with the decisions taken by the founding assembly of the company. In it, the sole owner of the capital makes decisions about the seat and address of management, the subject of activity and the term of the contract, the amount of capital, management and manner of representation, general provisions regarding distribution of profits and losses, as well as conditions for termination and liquidation of the company. This is followed by the opening of a collection account in a Bulgarian commercial bank and an import note for contributed capital, which is issued by the bank. The registration under the Sole Limited Liability Company also requires consent to accept management and a sample of the signature (specimen), which must be notarized and signed by the manager.
All this collected documentation is subject to entry in the Commercial register and register of non-profit legal entities.
In addition to the already attached documents, future entrepreneurs must also prepare several declarations regarding the truth of the stated circumstances, legal compliance for running a company and competitive activity. The application for the preservation of a company (D1) is not a mandatory component in the registration of a sole limited liability company and is paid separately at the owner's request. A license or permit is also sought only in cases where the company's activities require them.
Business consulting, legal, and accounting assistance in registering a sole limited liability company
Like any legally established procedure, the registration of a sole limited liability company requires exclusive compliance with the requirements of The Registry Agency and the Commercial Law. Like any legally established procedure, the registration of a sole limited liability company requires exclusive compliance with the requirements of the Registration Agency and the Commercial Law. No matter how much detailed information about the registration of a sole limited liability company you can get from the relevant administration and the Internet, there are always unforeseen pitfalls that will complicate the company registration process. That is why many future entrepreneurs prefer to insure themselves by trusting the life of their future company to competent companies to accompany them through all the procedures and all the documentation for the registration of a sole limited liability company.
BulAdvice's range of services saves time and significant financial resources, as well as reduces possible risks that may arise as a result of relevant local procedures and deadlines. BulAdvice has specialized for more than 15 years in the field of registration of a sole limited liability company , a limited liability company, a joint-stock company, a sole proprietorship and any other types of companies, therefore the services for starting an activity can include:
- Consultations on local official incorporation and type of entity;
- Preparation of the articles of association and all other legal documents necessary for registration of a sole limited liability company , a limited liability company, a joint-stock company, a sole proprietorship and any other types of companies in The Commercial Register;
- VAT Registration;
- Registration at Fiscal Authorities – for VAT and VAT MOSS
- Registration of the required special business license, if applicable;
- Registration of share capital and current bank accounts;
- Information on all changes in legal requirements related to the company;
- Representation in front of the local authorities;
- Recruiting a suitable person to act as manager or contact with a local business partner if needed;
We cover the full range of services to make your endeavor successful!
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