{"id":3160,"date":"2021-11-05T06:22:00","date_gmt":"2021-11-05T04:22:00","guid":{"rendered":"https:\/\/www.kgmp-legal.com\/en\/?p=3160"},"modified":"2022-02-12T07:29:49","modified_gmt":"2022-02-12T05:29:49","slug":"appointment-of-a-procurator-business-manager-of-the-company-in-bulgaria","status":"publish","type":"post","link":"https:\/\/www.kgmp-legal.com\/en\/appointment-of-a-procurator-business-manager-of-the-company-in-bulgaria\/","title":{"rendered":"Appointment of a procurator (business manager) of the company in Bulgaria"},"content":{"rendered":"\n<p>Any commercial company in Bulgaria may appoint a procurator (business manager) to manage its enterprise. More often, <a href=\"\/en\/types-of-companies-in-bulgaria\">Bulgarian companies owned by foreign individuals or legal entities<\/a> appoint a procurator to carry out all and any commercial activities of the company. However, the representative power of the procurator is<strong> more limited <\/strong>than that of the general manager of the company.<\/p>\n\n\n\n<p>The authorization of the procurator (the so-called procura) must bear <strong>notarised signatures<\/strong>. As well, a specimen of the signature of the procurator shall be submitted for recording in <a href=\"https:\/\/portal.registryagency.bg\/en\/\">the Commercial Register<\/a>.<\/p>\n\n\n\n<p>There is no obstacle for the company owners to authorize <strong>several individuals for either a separate or a joint management<\/strong>. The <strong>mixed version of representation<\/strong> is preferred for concluding contracts of higher value, for drawing loans and credits, etc.<\/p>\n\n\n\n<p>The conclusion of a <strong>procura agreement<\/strong> between the company and the procurator <strong>is mandatory<\/strong>. The contract may be concluded for an indefinite or for a definite period of time.<\/p>\n\n\n\n<p>The procurator is entitled to a <strong>monthly remuneration<\/strong>, which amount shall be agreed by the parties in the contract. As well, various bonuses for achieved results can be provided.<\/p>\n\n\n\n<h5>The procurator (business manager) has the right:<\/h5>\n\n\n\n<ul><li>to represent the company before any third parties &#8211; banks, insurance companies, state and municipal authorities;<\/li><li>to perform all actions and transactions related to the management of the company&#8217;s activity (e.g. to conclude contracts for sale, rent, loan, insurance, to file claims on behalf of the company, etc.);<\/li><li>to organize the commercial activity, the production process, the accounting and to operate with the bank accounts of the company;<\/li><li>to authorize third parties to perform certain actions, e.g. lawyers, accountants, etc.<\/li><\/ul>\n\n\n\n<p>The procurator may be explicitly assigned to execute <strong>the functions of the employer<\/strong> on the labour relationships. For example, to conclude, amend and terminate labour contracts, to execute the disciplinary responsibility of the employees, to send the employees on business trips, etc.<\/p>\n\n\n\n<p>The procurator signs documents by adding his\/her own name to the company\u2019s name and an additional text, indicating the procura.<\/p>\n\n\n\n<h5>The procurator (business manager) has no right:<\/h5>\n\n\n\n<ul><li>to authorize other persons with his\/her rights under the law;<\/li><li>to transfer or encumber any real estate of the company, unless expressly authorised thereto;<\/li><li>to carry out competitive activity, unless otherwise agreed in the procura contract.<\/li><\/ul>\n\n\n\n<p>An authorisation has effect in respect of third parties only after recording in the Commercial Register.<\/p>\n\n\n\n<p>The procurator&#8217;s authorization may be revoked at any time. The withdrawal is also subject to entry in the Commercial Register.<\/p>\n\n\n\n<h5>The procura agreement may also be terminated in the following cases:<\/h5>\n\n\n\n<ul><li>by mutual agreement between the parties;<\/li><li>upon expiration of the term of the contract, if such has been agreed;<\/li><li>unilaterally by the procurator by serving prior written notice;<\/li><li>in case of death of the procurator;<\/li><li>in case of transformation, <a href=\"\/en\/company-liquidation-in-bulgaria\">liquidation<\/a> or opening of insolvency proceedings of the company, etc.<\/li><\/ul>\n\n\n\n<p class=\"has-background\" style=\"background-color:#e2e9ec\"><strong><em><span style=\"color:#1b628c\" class=\"has-inline-color\">For more information or legal assistance please do not hesitate to contact us by e-mail:<\/span><\/em><\/strong> <a href=\"mailto:office@kgmp-legal.com\"><strong><span class=\"has-inline-color has-vivid-red-color\">office@kgmp-legal.com<\/span><\/strong><\/a><span class=\"has-inline-color has-vivid-red-color\">&nbsp;<\/span><strong><em><span style=\"color:#1b628c\" class=\"has-inline-color\">or call us on:<\/span><\/em> <span class=\"has-inline-color has-vivid-red-color\">+359 2 851 72 59<\/span><\/strong>.<\/p>\n\n\n\n<hr class=\"wp-block-separator\"\/>\n\n\n\n<h3>Send An Inquiry<\/h3>\n\n\n<div class=\"frm_forms  with_frm_style frm_style_formidable-style\" id=\"frm_form_5_container\" >\n<form enctype=\"multipart\/form-data\" method=\"post\" class=\"frm-show-form \" id=\"form_contact-form\"  >\n<div class=\"frm_form_fields \">\n<fieldset>\n<legend class=\"frm_hidden\">Contact Us<\/legend>\r\n\r\n<div class=\"frm_fields_container\">\n<input type=\"hidden\" name=\"frm_action\" value=\"create\" \/>\n<input type=\"hidden\" name=\"form_id\" value=\"5\" \/>\n<input type=\"hidden\" name=\"frm_hide_fields_5\" id=\"frm_hide_fields_5\" value=\"\" \/>\n<input type=\"hidden\" name=\"form_key\" value=\"contact-form\" \/>\n<input type=\"hidden\" 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More often, Bulgarian companies owned by foreign individuals or legal entities appoint a procurator to carry out all and any commercial activities of the company. However, the representative power of the procurator is more limited than that of the general&#8230;.<\/p>\n","protected":false},"author":2,"featured_media":3161,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[7,53],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v18.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Appointment of a procurator (business manager) of the company in Bulgaria - Law Firm Kancheff, Gicheva, Marnikas and Partners<\/title>\n<meta name=\"description\" content=\"Appointment of a procurator (business manager) of the Bulgarian company. Rights and obligations of the procurator. 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