Annual financial reports for year 2011
The campaign for publishing the Annual financial statements (Annual accounts) for 2011, annual management reports and the Auditors’ reports in the Commercial Register is currently in place. We would like to remind about the terms for publishing the above-mentioned statements and reports, which are as follows:
1. Sole traders shall publish respective documents by 31.05.2012;
2. Limited Liability Companies and Single owner Limited Liability Companies shall publish respective documents by 30.06.2012;
3. Joint Stock Companies and all other traders within the meaning of the Commercial Act shall publish respective documents by 31.07.2012.
Failure to comply with the requirements on publishing the Annual financial statements (Annual accounts) for 2011 at the Commercial Register shall be penalized by a fine ranging from BGN 500 to 2,000; a pecuniary sanction ranging from BGN 500 to 3,000 shall be imposed to legal persons and sole traders. Where a violation has been made for the second time, a sanction in a doubled amount shall be imposed.
According to the provisions of the Bulgarian law the Annual financial statements (Annual accounts) for 2011, annual management reports and the Auditors’ reports shall be adopted by the general meeting of partners/shareholders or by the relevant body of the trader. Following the procedure, together with their annual financial statements, joint stock companies, partnerships limited by shares and limited liability companies shall also publish information on the proposal of the managing body on the distribution of profit or for covering a previous year’s loss and the decision of the general meeting of shareholders/partners on the allocation of profit for distribution or for covering a previous year’s loss.
In summary for the publishing of the statements and the reports for 2011 the traders need to submit to the Commercial register some additional documentation, that concerns the adoption of the statements and reports. Our advice is to start the preparation of the needed documentation as soon as possible because in the last few years during the last days of the deadlines the Commercial register was overloaded and some difficulties with the submission of the documentation occurred.
Separately Non-profit legal persons designated as operating for the public benefit shall publish their statements and reports to the Central Register with the Ministry of Justice by 30.06.2012.