Changes to the BULSTAT Register

On 9 October 2015, the Bulgarian Parliament ("Parliament") voted preliminary on a number of changes to the BULSTAT Register Act ("BRA"). The amendments reflect the government's intention to decrease by 20% the administrative burden (related to the legislation) on businesses. Once they become effective, the new provisions can be put in three specific categories.

The first set of changes relates to the complete computerization of the register. An electronic case file will be kept for each subject that is registered. The legislator aims to create а centralized, unified, publicly available and free database. This will eliminate the requirement for issuance of identification cards for registered entities - the respective company's information shall be publicly available online.

The second category of amendments relates to the functioning of the register. Generally, the amendments specify the details that are subject to registration. In addition, an entirely new registration system is introduced allowing registration by electronic means. Furthermore, a system for objecting to decisions of the register's employees is implemented, which in turn strengthens the position of applicants as clear rules will now apply to them.

The final changes refer to the obligations imposed on various bodies to cooperate with and make use of the register. Governmental and municipal bodies, courts, banks as well as the contracting authorities for assignment of public procurement projects will be under the obligation to check by themselves information about registered entities. And finally, there is a requirement for social-security and revenue authorities to enter information about registered subjects automatically.