Registration of a construction company in the Chamber of Builders in Bulgaria

How can accounting firm “Elan Consulting” help with the registration of a construction company in the Chamber of Builders in Bulgaria?

Preparation and submission of documents:The team of “Elan Consulting” can help you with the compilation and preparation of all the necessary documents for successful registration in the CPRS.

Obtaining a certificate:After submitting the application and documents, the experts of “Elan Consulting” will help you get your certificate of registration without delay.

Consultations on changes in circumstances:If you are already a registered builder and there are changes in your circumstances, Elan Consulting can help you with the preparation and submission of documents for a change in circumstances.

Assistance in expanding or narrowing the scope of activity:If you wish to expand or narrow the scope of your activity, the Elan Consulting team will help you with all the necessary steps in this process.

What are the features of registration of a construction company in Bulgaria?

Registration of a construction company in Bulgaria includes several key steps and specific requirements that are important for future entrepreneurs in this field. Here we will look at the main aspects of this process, focusing on legal, tax and sector-specific requirements.

Choosing a legal and organizational form of a construction company

Any construction company wishing to start operations in Bulgaria must first determine its legal and organizational form. This choice is important because it determines what the responsibility of the owners will be, how the company will be managed, how it will be taxed and what will be the opportunities to attract capital. The process of registering a construction company in Bulgaria begins with its incorporation as a legal entity. This can be done by creating a limited liability company (LLC) or a joint-stock company (AD). This requires the preparation of constituent documents, such as articles of association and act of incorporation, and registration in the Commercial Register. It is important to choose a suitable name for the company, determine the address of management and make a decision on the appointment of managers. This step is critical as it provides the firm with a legal basis to carry out its activities.

The constituent documents must meet all the requirements specified in the Commercial Law.
It is important to specify the authority of managers, especially in the context of company representation and decision-making.

Document preparation is a critical step in the registration process. It includes the preparation of a memorandum of association and articles of association, which determine the rules for the management and operation of the company, as well as other documents that may be required by the registration authorities. This step also involves providing information about the company, such as name, address, capital and subject of activity.

Once all documents are ready, they must be filed with the Commercial Register of the Republic of Bulgaria. This step usually takes several working days and involves a review of documents by the registration authorities for compliance with legal requirements. In case of successful examination, the company enters the register and receives its own unique identification number.

License for construction activity and registration in the CPRS

After the company is registered as a legal entity and has received the necessary license, the next step is registration with the CPRS. This registration is mandatory for builders performing constructions from the first to the fifth category, as specified in Art. 137, para. 1 of the ZUT. Registration in the CPRS gives the right to construction companies to carry out constructions of the respective group and category.

Key requirements for a construction company license

Appropriate qualified personnel: The company must prove the availability of qualified professionals to carry out the construction activities.
Technical equipment: Having the right equipment is essential for the quality execution of construction projects.

Registration in the Central Professional Register of Builders (CPRS) is mandatory for all construction companies in Bulgaria that carry out complex construction installation works. The Law on Spatial Planning provides exclusionsfor which registration is not required, namely: construction of residential and mixed buildings with a height of up to 10 m. /height cornice/, cottage buildings, etc. under Art. 137, para. 1, item 5, b. “c” and “d” of the ZUT, as well as a number of others. CPRS is under the control of the Bulgarian Chamber of Builders and aims to ensure that all construction companies comply with the necessary standards and regulations. Registration with the CPRS also enables companies to participate in public procurement and access other important resources and opportunities in the construction sector.

Necessary documents for registration of a construction company in the CPRS

Application for registration: Includes instructions for the group and categories in which the builder wishes to be listed.
Diplomas and certificates: Diplomas attesting to the technical competence and qualifications of the technical staff must be presented.
Reference from the NRA: A reference to the current status of all current employment contracts is required.
Equipment reference: Presentation of information about the builder's machinery, facilities and equipment.
Occupational safety training document: Certificate of training of the person in charge of occupational safety control.
Staff reference: Information on the number and qualifications of the staff.
Qualification Training Reference: Data on staff trainings carried out in the last three years.
Report on completed constructions: Description of the constructions carried out by the company in the last three years.
Documents for completed works: Provision of documentation for completed projects.
Reference on penalties imposed under the UTI: Reference on the presence or absence of penalties imposed for violations of construction legislation
Insurance policy: Evidence of concluded compulsory insurance “Professional liability of participants in design and construction”. An integral part of the application for initial entry in the register is a declaration by the builder according to a model about the existence of valid insurance “professional liability” according to Art. 15, para. 1, item 7 of the ZKS in conjunction with Art. 171 of the ZT and the Ordinance on the conditions and procedure for compulsory insurance in the design and construction (Adopted with PMS №38 of 24.02.2004., obn., DV, no.17 of 02.03.2004), which corresponds to the scope of entry in the CPRS requested by you
Payment document for a paid fee: Document of the paid registration fee.
Financial information: Data from the annual financial statements for the last three years.
Additional documents: Depending on the specifics of the projects, additional documents may be required, for example, for objects-cultural values or facilities of increased danger.

CPRS registration fees

The amount of the registration fee is 0.1% of the NAP (net sales revenue) for the last financial year, butnot less than 1,200 BGN
The maximum amount for the fee is limited to 30,000 BGN
In case of refusal to register, 90% of the paid fee is refunded.
VAT is also charged on fees.

What insurance for a construction company is needed to register with the CPRS?

Insurance “Professional liability of participants in the design and construction” is compulsory insurance(pursuant to art. 171 of the Spatial Planning Act).

It is intended for compensation of damages caused by the Insured to other participants in the construction and/or to third parties in the exercise of his professional activity.

It is concluded from the moment of start of the activity, but always before the entry into the CPRS.Renewal without interruptionwhile the professional activity is being carried out.

Upon termination of the activity, it is concluded one-time insurance for a period of 5 years (Art. 171, para. 5 of the ZUT).

The minimum insurance amounts for the builder under the Ordinance on the Conditions and Procedure for Compulsory Insurance in Design and Construction /Obn., DV, issue 17 of 2 March 2004/ are as follows:

1. for constructions of the first category according to Art. 137, para. 1, item 1 SPA - 600 000 BGN ;

2. for constructions of the second category according to Art. 137, para. 1, item 2 SPA - 400 000 BGN ;

3. for constructions of the third category according to Art. 137, para. 1, item. 3 SPA- 200 000 BGN ;

4. for constructions of the fourth category according to Art. 137, para. 1, item 4 SPA- 100 000 BGN ;

5. for constructions of the fifth category according to Art. 137, para.

Important! It is necessary that there is a correspondence between the requested category of construction and the amount of insurance taken out at the date of submission of the application.

Is a construction company license required and when is it not needed?

In other words, many of our customers have asked uswhen a building activity license is not neededand what conditions my company must meet so that I do not have to fit in.

In Bulgaria, the licensing of construction companies is regulated by several legal acts, which determine the conditions and requirements for carrying out construction activities. The main law in this area is the Law on the Chamber of Builders, which in Article 14, paragraph 2, states that certain types of construction can be performed by builders who are not entered in the register of the Chamber of Builders. This includes construction of residential and mixed low-rise buildings, cottage buildings and other similar objects under Art. 137, para. 1, item 5, b. “c” and “d” of the Spatial Planning Act (ZUT).

According to the letter of CT-839-00-549 /23.01.2009 of the Head of the State Supervision of Construction Control (DNSC) Sofia, all subcontractors who participate in the construction process and have a contract with the general contractor for the execution of individual parts or construction and installation works (CMP), must be entered in the register. In the event that the contracting authority concludes contracts with more than one builder for the performance of the construction, all these builders must have an entry in the category from which the particular construction belongs.

Without registration in the Central Professional Register of Builders (CPRS), the company can work as a contractor of residential and mixed buildings with a height of up to 10 m. (cornice elevation), cottage buildings and other similar objects, as well as perform construction and installation works (CMR), for which the issuance of a Building Permit according to the ZUT is not required. On the other hand, the company cannot perform production works of category V and cannot be a subcontractor of works outside those for which it can be a contractor.

Categories of constructions according to Ordinance No. 1 of 2003According to Ordinance No. 1 of 30 July 2003 on the Nomenclature of Types of Construction, constructions are divided into different categories according to their nature, functionality and environmental impact. Depending on the category of construction, construction companies may need different types of licenses and permits to carry out construction and installation activities.

Commissioning and warranty periods according to Ordinance No. 2 of 2003According to Ordinance No. 2 of 31 July 2003 on commissioning of structures in the Republic of Bulgaria and minimum warranty periods for completed construction and installation works, facilities and construction sites, construction companies must comply with certain procedures and deadlines for commissioning of completed constructions, as well as provide minimum guarantees for the completed construction and installation work.

Obligations and Responsibilities of Construction Companies: Construction companies in Bulgaria must comply with strict standards and regulations in the field of construction. They are responsible for the quality of the construction and installation works performed, the compliance of the constructions with the established norms and for compliance with the warranty periods for the execution of the construction and installation works. Failure to comply with these requirements may result in penalties and fines by the relevant regulatory authorities.

Frequently Asked Questions

What are the basic steps for registering a construction company in the Chamber of Builders in Bulgaria?

The main steps include preparing an application and necessary documents, submitting the application to the House of Builders, paying registration fees and annual service, and obtaining a certificate of registration.

What is the role of an accounting firm such as “Elan Consulting” in the registration process?

“Elan Consulting” can help with the preparation and submission of all necessary documents, obtaining a certificate of registration, as well as with consultations on changes in circumstances and expansion or narrowing of the scope of activity of already registered builders.

What fees are due upon registration and how are they determined?

The fees include an initial registration fee based on the company's net sales revenue and an annual service fee, which is determined depending on the scope of listing, the group and the category of works.