EC Stops Infringement Procedure against Bulgaria over EU Companies Registration

Justice Minister Diana Kovacheva has assured that the technical obstructions at the Registry Agency have been removed and the overall system has been streamlined. Photo by Sofia Photo Agency

The European Commission (EC) has stopped an infringement procedure against Bulgaria launched over technical difficulties obstructing the registration of European commercial entities.

As a result, Bulgaria no longer faces having to pay EUR 770 000 – 4 million, according to reports of the Bulgarian Telegraph Agency (BTA).

The infringement procedure was launched on the basis of data gathered by the EC for Bulgaria's failure to provide technical opportunities for registering European commercial entities as a result of the failure of the Registry Agency to develop the required software.

As of June 1, the technical obstruction was removed.

Bulgarian Justice Minister Diana Kovacheva told BTA that the EC decision was due recognition for the efforts made by the team of the Justice Ministry.

Kovacheva explained that Bulgaria had been exposed to serious risk on the grounds of discrimination against European commercial entities.

She noted, however, that the technical obstructions had been removed and the specialists had also solved other problems at the RegistryAgency.

Kovacheva pointed out that the register of annual financial statements at the Registry Agency had not stopped working for the first time this year, despite experiencing serious difficulties.

She reminded that the register had been unavailable for two weeks in 2011.

Bulgaria's Justice Minister claimed that the outdated software and hardware had not been updated, as a result of which the system could not work under load.

She said that updates were underway, after which the Trade Registry would function in a new way.

Kovacheva added that an opportunity could be provided to submit financial statements at a one-stop shop in end-2012.

She explained that talks were underway with the Finance Minister to assign the procedure to the National Revenue Agency (NRA), with the Registry Agency lending support with its staff.

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