CM December 2020

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COUNTRY FOCUS AUTHOR – Adam Bernstein BUSINESS TYPE As with other countries around the world, Bulgaria offers a number of business entities from which to conduct business. These include the standard sole tradership (ET) and a general or limited partnership. However, the most commonly used format is the limited liability company (OOD) or the joint-stock company (AD). It’s also possible to open a branch or representative office, the latter established not to sell but instead, to carry marketing or other ancillary business functions. Back to the OOD and AD. These entities require at least one shareholder with no maximum number and liability is limited – apart from, say, fraud and tax evasion – to the shares subscribed. An AD differs from an OOD in that it may be comprised of individuals and also legal entities (including those of any nationality, place of incorporation or management). Further, an OOD must have at least two BGN in share capital but for an AD, that figure is BGN 50,000. But there is another difference – management. An OOD tends to have one or a number of directors while Sofia, Bulgaria an AD can have various levels of management. Business registration requires a name, defined activity, an address in Bulgaria and initial share capital deposited in a local bank in an escrow account. This is then followed by registration on the publicly available official Commercial Register and the acquisition of an official stamp that is used to endorse any formal activities. Annual reports must be submitted to the register and there is a requirement for annual inventory counts. Firms should be prepared to store records for some time; EY highlights that payroll data needs to be kept for 50 years, accounting records and financial statements for 10 years, tax and social security records and everything else for five years. According to foreigner.bg, there are no restrictions on overseas involvement in a Bulgarian business; in other words, a Bulgarian business can be 100 percent foreign owned. However, registration isn’t fast and can take up to two weeks; the assistance of a Bulgarian speaker is essential since the register is not available in English. Lastly, Bulgaria offers intellectual property protection since it is a signatory to various conventions and treaties on the subject. However, as EY notes, licensing, patents, copyright and trademarks are not overly regulated or constrained; trade in this area is expanding and so EY’s¬ advice is to draw up agreements that observe the legal minimum so as to maintain flexibility. EMPLOYMENT RIGHTS Businesses need staff and detail from the Leinonen Group, an international payroll firm, explains a number of key points. First, employment contracts must be registered at the National Revenue Agency and while they can be written in any language, a Bulgarian copy is recommended. Minimum wage legislation exists and as of July 2020 is €311.90 per month. According to the Bulgarian Labour Code, employers can use probationary periods, but they may last six months at most. Other than the probationary period, termination of a contract requires at least one month’s notice. Annual paid leave is a minimum of 20 days plus public holidays and when illness or injury occurs, the employer will cover 70 percent of the employee’s wages for the first three days with the balance paid by the National Social Security Institute. For an employee to acquire the right to sick pay they must work a minimum six months and social security payments must be completed. Foreign nationals may work in Bulgaria only if they reside legally in Bulgaria; this is certified by way of a relevant residence permit issued by the Ministry of the Interior and/or a relevant permit has been granted by the executive director of the Employment Agency. ONE FINAL POINT Visitors to Bulgaria should be aware of one key nicety of life there. The internationally accepted gestures signifying ‘yes’ (nodding up and down) and ‘no’ (side to side) are done in reverse, so when Bulgarians nod their heads this mean ‘no’, and when they shake their heads it means ‘yes’, a fact that may be confusing. Adam Bernstein is a freelance business writer. Advancing the credit profession / www.cicm.com / December 2020 / PAGE 26
COUNTRY FOCUS AUTHOR – Adam Bernstein The Dormition of the Mother of God Cathedral is the largest church building in Varna and the third largest cathedral in Bulgaria (after St. Alexander Nevski Cathedral in Sofia and St. Dimitar Cathedral in Vidin). Officially opened on 30 August 1886. It is the residence of the bishopric of Varna and Preslav and one of the symbols of Varna. Advancing the credit profession / www.cicm.com / December 2020 / PAGE 27
Page 1: CREDIT MANAGEMENT CM DECEMBER 2020
Page 4 and 5: EDITOR’S COLUMN Stop the world, I
Page 6 and 7: NEWS ROUNDUP Experian gives credit
Page 8 and 9: NEWS ROUNDUP D&B launches new Lendi
Page 10 and 11: INSOLVENCY SPECIAL BARE ESSENTIALS
Page 12 and 13: OPINION THREATENING BEHAVIOUR Activ
Page 14 and 15: OPINION AUTHOR - Adam Bernstein For
Page 16 and 17: Tired of chasing invoices? Let Sata
Page 18 and 19: INSOLVENCY SPECIAL Easing the Burde
Page 20 and 21: Advancing the credit profession / w
Page 22 and 23: EXCLUSIVE REPORT Sean Feast FCICM
Page 24 and 25: COUNTRY FOCUS Language and cultural
Page 28 and 29: Let us show you why our years of Hi
Page 30 and 31: INTERNATIONAL TRADE Monthly round-u
Page 32 and 33: CONSUMER COLLECTIONS SOFTLY SOFTLY
Page 34 and 35: HIGH COURT ENFORCEMENT OFFICERS ASS
Page 36 and 37: C R E D I T M A N A G E M E N T Col
Page 38 and 39: PAYMENT TRENDS Time to Buckle up? T
Page 40 and 41: INTRODUCING OUR CORPORATE PARTNERS
Page 42: INTRODUCING OUR CORPORATE PARTNERS
Page 45 and 46: PANEL BASHERS Panellist Nigel Field
Page 47 and 48: EDUCATION & MARKETING CICM Virtual
Page 49: BRANCH NEWS Standing out from the C
Page 52 and 53: CICM MEMBER EXCLUSIVE Your CICM lap
Page 54 and 55: Everything youneed forAML complianc
Page 56 and 57: TAKE CONTROL OF YOUR CREDIT CAREER
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Page 60 and 61: Cr£ditWho? CICM Directory of Servi
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Page 64: Working Capital that works for you

CM December 2020

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