How do I register a nonprofit association in Bulgaria and open a bank account legally?

Hello,

Here is am overview of registering a youth sports association (сдружение с нестопанска цел) in Bulgaria, and the related banking requirements:

Registration steps

1. 
   

   Choose a unique association name.

   
   


2. 
   

   Hold a founding meeting (minimum 3 founders).

   
   


3. 
   

   Adopt the Statute (Устав) and elect management/representatives.

   
   


4. 
   

   Submit documents to the Register of Non-Profit Legal Entities (online or on paper).

   
   


5. 
   

   Pay the state fee.

   
   

Required documents

• 
  

  Application Form A15

  
  


• 
  

  Statute (Устав)

  
  


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  Minutes from the founding meeting

  
  


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  List of founders with signatures

  
  


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  Decision/minutes appointing management and legal representative

  
  


• 
  

  Signature specimen(s) of the legal representative(s)

  
  

Bank account & signatories

• 
  

  A bank account is not required for registration.

  
  


• 
  

  When opening an account, banks typically require:

  
  
  
  
  • 
    

    Entity identifier and registration documents

    
    
  
  
  • 
    

    Statute

    
    
  
  
  • 
    

    Minutes showing legal representation

    
    
  
  
  • 
    

    ID of signatories

    
    
  
  
  • 
    

    Signature specimens (often signed at the bank or notarized)

    
    
  
  
  
  


• 
  

  Banks often request additional internal authorization/compliance forms.

  
  

If you would like professional assistance with drafting documents, filing the registration, or coordinating with the bank, I would be happy to help.

Best regards,
Simeon

Здравейте Симеон, имам опит в регистрацията на спортни асоциации, както и връзка със спортните федерации, към които следва да се регистрират след това спортистите от дадения спорт. При интерес може да се свържете с мен, за да опиша следните стъпки.

Thank you for your inquiry and your interest in establishing a nonprofit association in Bulgaria. Our team would be pleased to assist you with the procedure and has extensive experience in this field.

To register a nonprofit association in Bulgaria and legally open a bank account, several formal steps must be followed in accordance with Bulgarian law:

1.1. The first step is to determine whether the association will operate i) for private benefit or ii) for public benefit. This decision is important, as once an association is designated as operating for public benefit, it cannot be changed later.

Associations operating in public benefit are subject to stricter legal requirements and regulatory oversight, but they may also benefit from tax, financial, and economic incentives, as well as access to public or other forms of funding, under the conditions and procedures set out in the relevant special acts and in compliance with state aid rules.

In order for an association to be classified as operating in public benefit, it shall use its assets exclusively to achieve purposes expressly listed in the Non-Profit Legal Persons Act. Such purposes include, among other things, the development and strengthening of civil society, civic participation and good governance, the promotion of spiritual values, healthcare, education, science, culture, technology, and physical culture (which we understand to be the intended objective in your case), as well as support for children, persons with disabilities, and other vulnerable groups.

1.2. The next step in establishing an association is to meet the requirement for minimum number of founders, which is important for both private-benefit and public-benefit associations. An association operating in private benefit must be established by at least three persons, whereas an association operating in public benefit must be established by at least seven natural persons or three legal entities.

1.3. The founders must choose a name for the association. The name must clearly indicate the type of legal entity (in this case, “association”) and must not be misleading or offensive to public morals. In addition, the name must be unique, meaning that no other legal entity can have the same name (once you choose a name, we can check if it is available).

1.4. Next, a founding assembly must be held, at which the founders adopt a decision to establish the association, approve its articles of association and elect the managing bodies.

The Articles of association must specify the association’s name and registered seat, its objectives and the means for achieving them, whether it will operate in private or public benefit, and the scope of any additional economic activity. Any such additional economic activity must be related to the association’s main non-profit activity, and the income derived from it may be used solely to achieve the association’s non-profit objectives, without distribution of profit.

The Articles of association must further regulate the managing bodies of the association and their authority, the manner of representation, the rules for origination and termination of membership, the settlement of property relations upon termination of membership, the term for which the association is established, the determination and payment of property contributions, and the distribution of any remaining assets after creditors have been satisfied.

1.5. The final step is the registration of the association in the Register of Non-Profit Legal Entities, as the association officially comes into existence upon entry in this register. The application for registration must be accompanied by the Articles of association, the founders’ decision to establish the association, as well as the notarized specimen signatures of the individuals who will represent the association.

1.6. While opening a bank account is not mandatory before registration, it is practically essential for carrying out the association’s activities. Due to the anti-money laundering (AML) regulations, banks in Bulgaria have adopted a strict approach when accepting new clients. The procedure includes provision of certain KYC documents and the founder/representative of the association will likely have to personally come at a local office of the bank in Bulgaria, respectively – this step could be time-consuming (between 1 week and a few months depending on the bank’s findings).

2.1. For completeness, it should be noted that under Bulgarian law, nonprofit organiszations can also be established in the form of a foundation. A key feature of this entity is that foundation do not have members and is established by a unilateral act granting property for the achievement of nonprofit objectives.

2.2. The steps for establishing a foundation are generally similar to those for an association – again, it must be determined whether the foundation will carry out activities for private or public benefit, and the requirement for the name and the registration in the register of non-profit legal entities must be complied with.

Unlike an association, a foundation can be established by a single person, and its Articles of association must be notarized. Since the establishment of a foundation involves the founder providing property, it is necessary to open a bank account before registration, and the same considerations regarding AML/KYC procedures apply as described above.

We hope this information is helpful and look forward to the possibility of cooperation. We remain available to provide any further information you may require.

With kind regards,
Boris Lazarov
Managing Partner at Penkov, Markov & Partners