Amendments to the Accountancy Act provide for the abolition of the requirement to publish the annual financial statements of companies that did not operate during the reporting period. The amendment has been in force since 1st January 2018.
Under the effective rules, companies that have not carried out activity during the reporting period do not have the obligation to publish the annual financial statements, the consolidated financial statements and the annual reports.
However, the fact that companies have not carried out activity must be declared by a declaration (in a free form), which has to be published in the Commercial Register not later than 31st March of the following year.
The company which has not fulfilled the above described obligation for publication shall be sanctioned with a monetary sanction from BGN 300 to BGN 2,000, and in case of a repeated violation - from BGN 600 to BGN 4,000.
Please note that companies that have not carried out any activity during the reporting period means companies that meet the following requirements simultaneously:
a) during the reporting period no transactions under Article 1 (1) of the Commerce Act have been effected;b) during the reporting period no conditions for recognizing income under the Accountancy Act and applicable accounting standards have occurred;c) have not carried out activity related to investment, production and/or sales;d) have not effected purchases of goods and services aimed at earning income and profits.
Disclaimer: The information above is for guidance purposes only and should not be regarded or relied upon as a comprehensive or formal legal opinion concerning any matter referred above. It is recommendable that specific legal advice is sought if an action on the basis of the information contained herein is contemplated.