Capital decrease is a formal procedure allowing a company to reduce its registered capital.
Common Reasons
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Covering accumulated losses
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Returning excess capital to shareholders
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Corporate restructuring
Legal Requirements
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Shareholders’ resolution
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Amendment of Articles of Association
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3-month creditor protection period
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Registration with Commercial Register
Example
An OOD with capital BGN 50,000 and losses of BGN 35,000 may reduce capital to BGN 15,000 to align with real equity.
Timeline
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Minimum duration: 3–4 months
Due to creditor protection rules and strict statutory deadlines, capital decrease must be carefully structured to avoid rejection or legal risks.
