Share Capital of Companies Following the Introduction of the Euro

With the introduction of the euro as the official currency of the Republic of Bulgaria, the legislation provides a specific framework for the treatment of company share capital.

Pursuant to the Law on the Introduction of the Euro, as of the date of the euro’s introduction, the share capital registered with the Commercial Register of limited liability companies, joint-stock companies and partnerships limited by shares is automatically replaced by the corresponding values in euro and euro cents.

This replacement takes effect by operation of law and is technical in nature. It does not constitute an increase or decrease of share capital, but a conversion of its nominal value into the new currency, based on the official fixed exchange rate between the Bulgarian lev and the euro and the applicable rounding rules.

Within 12 months from the date of the euro’s introduction, companies are expected to bring their corporate documents into compliance with the new currency. This includes:

• adopting a resolution by the competent corporate body;

• updating the articles of association or statutes;

• filing the corporate documents with the Commercial Register.

These steps aim to ensure transparency, legal certainty and consistency between the company’s actual status and the information recorded in public registers.

Early planning and coordination with legal and accounting advisors may help facilitate a smooth and compliant transition.