The Registry Agency faces a complete documentary blockade in September, according to Executive Director Eliana Ivanova, threatening severe business disruptions as a year-end processing backlog threatens to paralyze the system. The looming crisis stems from the late-September deadline for annual financial reports for the activity in 2025, which coincides with a massive surge of commercial filings to convert company capital into euros under the Law on the Introduction of the Euro.
Capital Conversion Backlog and September Filing Surges
Only about 10% of the roughly 900,000 registered companies in Bulgaria have submitted applications to convert their capital into euros, according to figures provided by Ivanova during a working meeting with employer organizations. Ivanova explained that many businesses mistakenly believe they must file their capital conversion paperwork simultaneously with their annual financial reports. This overlap means hundreds of thousands of conversion documents will hit the agency simultaneously in September.
In addition to these filings, the number of unprocessed annual financial reports is expected to climb past one million. Around 600,000 of those financial statements already carry delays from previous years. When combining the incoming filings with the existing backlog, Ivanova warned that the agency will need to process more than two million applications by the end of the year, while operating at a daily processing capacity of just 2,000 documents.
Did You Know? The Law on the Introduction of the Euro requires all capital commercial companies—including LLCs, sole-owner LLCs, joint-stock companies, and sole-owner joint-stock companies—to update their registered capital into euros with the Commercial Register by the end of 2026.
Legislative Deadlines and Proposed Amendments
The statutory deadline for capital conversion spans 12 months from the introduction of the euro, which places the final date at the end of 2026. However, a separate provision in the law requires updated company agreements and statutes featuring converted capital to be submitted during any change of company data or registration circumstance. Because filing annual financial reports constitutes a change of circumstance, businesses face an effective deadline of September 30, 2026.
To address this bureaucratic bottleneck, lawmakers from the ruling party “Progressive Bulgaria” introduced amendments to the Law on the Introduction of the Euro. Their proposal removes the mandate to submit capital conversion documents alongside annual financial reports and extends the conversion deadline from 12 months to 36 months. Parliament left these legislative changes for the autumn session following their August vacation, meaning any vote will occur just days before the current deadline.
Emergency Measures and Electronic Channels
During the meeting with the Registry Agency leadership, employer organizations stressed the urgent need for operational adjustments to speed up processing times. Their proposed solutions include separating the incoming documents into three distinct streams: annual financial reports, general circumstance changes, and capital conversion applications.
Agency officials urged the business community to fully utilize electronic channels for all Commercial Register submissions. Deputy Director Nikolay Minev noted that a portion of applications still arrive at physical counters. Maintaining service desks for these physical filings requires dedicated staff who could otherwise act as official registration officers.
Frequently Asked Questions
What is causing the upcoming difficulties at the Registry Agency?
The crisis results from an overlap between the September deadline for 2025 annual financial reports and a peak wave of commercial filings required to convert company capital into euros.
What deadline do companies face for euro capital conversion?
The current statutory deadline allows 12 months from the introduction of the euro, though rules regarding changes of circumstance create an effective deadline of September 30, 2026. Lawmakers have proposed extending this period to 36 months.
How many companies have converted their capital so far?
According to Registry Agency data, roughly 10% of the approximately 900,000 registered companies in Bulgaria have submitted their conversion applications.
How will your company manage its upcoming filings ahead of the September deadlines?
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