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Variable Capital Companies (VCCs) can now be registered in the Commercial Register and the Register of Non-Profit Legal Entities (CRRNPLE) and do business in Bulgaria. This became possible after the national system integrator Information Services, together with CNSYS AD, managed to build and put into operation a system within just 10 months that allows VCCs to be registered under the Commerce Act. The project, which is a priority for the Registry Agency, was successfully completed 3 months before its deadline for implementation. The developed functionality is already available in the Unified Portal for Requesting Electronic Administrative Services (UPREAS) of the agency. A total of 195 employees of the Registry Agency have already been trained to work with the new software and process the documents for the registration of VCCs.
"With the implementation of the project, we responded to the increased interest of numerous startup companies developing innovative and high-tech products to enter the Bulgarian market," said Nikoleta Stoyanova, Head of the Business Analysis Department at Information Services. According to her, with the successful completion of the project, the country has shown that it can adequately meet the needs of the rapidly developing business in Bulgaria. The increased interest is evidenced by the fact that within the first few hours after the implementation of the new software solution, the Registry Agency received two applications.
Variable Capital Companies are a new type of legal organizational form made possible by amendments to the Commercial Law in 2023, following years of efforts by the Bulgarian Entrepreneurial Association BESCO to regulate this new form. The main goal of VCCs is to support the activities and development of startups and innovative companies by facilitating the distribution of company shares among investors or employees. VCCs allow for the easy and quick establishment of companies between Bulgarian and foreign citizens. The requirement for initial capital is eliminated, it is not subject to registration in the Commercial Register, and there is no requirement to open a capital raising account. Companies can be listed on the stock exchange more easily and quickly through a simplified procedure.
General meetings can be held remotely and online, and shares can be freely transferred at the discretion of the partner. The establishment of VCCs allows for faster business management processes and more flexibility in decision-making.