What is a joint stock company
A joint-stock company is a company whose capital is divided into stocks. This is one of the main differences with limited liability companies where equity is a sum of company shares.
The company is liable to the creditors with its assets. The shareholders are responsible for the obligations assumed by the AD (Bulgarian for JSC) up to the amount of the contributions made, without being responsible for their personal property. The sum of shares in AD forms its capital.
The name of the joint-stock company or the abbreviation “AD” is included in the company of the AD. One or more natural or legal persons may register such a company. The minimum value of the capital of the AD is BGN 50,000, and when establishing the company the law allows to pay only 25% of the subscribed capital.
For what purposes is it appropriate to register a joint-stock company?
Joint-stock companies are generally preferred to larger-scale businesses. This form is most often preferred when the composition of the participants in the project for which the company is created consists of a large number of investors who may not know each other. Usually these are projects with the participation of international investors.
This does not mean that JSC cannot be registered under completely different conditions, nor does it mean that a JSC, for example, will not do a good job. However, this is the general case where the registration of a joint-stock company is most often resorted to.
Establishment and registration of a joint-stock company
The registration of the joint-stock company is stated by the members of the board of directors (under a one-tier management system of the joint-stock company) or by the management board (under a two-tier management system of the joint-stock company), or by an authorized by the articles of association or an authorized member of the management bodies of the AD, as and by a lawyer with express written power of attorney.
The application for registration of the AD is in the form and can be submitted only electronically. Where notarized documents are required, their electronic image shall be attached to the application.
AD is established under a regulatory system. The founders are the persons who record the shares of the constituent assembly. They must be capable persons and cannot be founders of bankruptcy.
Non-profit legal entities may be founding members. The founders may not be minors, but they may be shareholders. The company itself cannot be a founder of itself either – it stems from the principle of real capital injection. But AD may further subscribe its own shares.
Capital must always be subscribed. When subscribing own shares, the founders are jointly and severally liable for the contributions against the subscribed shares. AD may be formed by one or more persons. The founders can retain some benefits for themselves. Until the establishment of the AD, the founders are jointly and severally liable for the commitments made on behalf of the TD.
Our experience with JSC
At Profirms, we have the confidence of consultants who have participated in more than one joint-stock company registration project. Our team has participated in the founding of both more basic companies and companies with international participation.
Profirms guarantees the high quality of the services offered, with the possibility of receiving your money back in case the service for which you requested us is not fulfilled according to the prior arrangement.