Foundation Law in Bulgaria

Abstract

• 1. In Bulgaria, since 2001, there has been a statutory law which provides for the main principles of the creation, functioning, structure and termination of non-profit legal entities. One of the legal organisational forms under which a non-profit legal entity may exist in Bulgaria is the foundation. The provisions referring to a foundation in the law are more fragmented compared to the ones referring to an association. In many cases, there is even no explicit provision and the rules for association should be applied by analogy. It is recommended for future legal changes the part of the law treating foundations to be developed in more detail in view of its future supplementing by provisions referring to its organisational structure, the formation of its bodies and their authority.

• 2. In line of summarising the possible changes of the law, the position and role of the CR (Central Register of Not-for-Profit Legal Entities at the Ministry of Justice) (where public benefit foundations are registered) should be also mentioned. In any case, clarification of the verification scope which the register will carry out, simplifying the procedure by officially sending some of the documents to the register, is among the most urgent and important changes which have to be embraced by any future amendments in the law.

• 3. Regarding the tax regime for treatment of foundations, the treatment is not different than the one for associations which are also considered non-profit legal entities. The condition which the legislator sets for providing a more favourable tax regime is not the legal organisational form (foundation or association) but the aims the organisation has – whether they are public or private.