The establishment and registration of a sports club are governed by special rules laid down in the Physical Education and Sport Act. Where a newly established club intends to become a member of a licensed sports federation, it is advisable to review beforehand the statutes of the relevant federation as well, since these frequently lay down additional criteria which the club must satisfy.

Sports clubs may be established in the form of commercial companies – a limited liability company (OOD)/sole-owner limited liability company (EOOD) or a joint-stock company (AD/EAD). Natural persons, commercial companies, associations or foundations may participate as partners or shareholders, or, as the case may be, as the sole owner of the capital.

In practice, the most common option is for sports clubs to be registered as non-profit associations. In this way they may carry out activities for private or public benefit. It is particularly important that the membership of the association – where it functions as a sports club – may consist solely of natural persons.

A sports club may be established:
for the development of a particular sport or of a group of sports similar in nature;
for the development of more than one sport, united by a common principle or concept (a so-called „multi-sport club“).

SPECIFIC REQUIREMENTS FOR SPORTS CLUBS

Regardless of whether the sports club is set up as a commercial company or as an association, the following requirements of the Physical Education and Sport Act must be complied with upon its registration:

the name of the club must contain the word „club“, as well as an indication that sports activity is carried out;
the objects of activity must include physical activity, sport or the relevant unifying principle, where a multi-sport club is concerned.

Where the sports club intends to become a member of a licensed sports federation, it must also satisfy additional conditions:

it must not be a member of another sports federation or of another multi-sport federation, save in the cases expressly provided for by law in which membership of more than one federation is permissible;
there must be no related persons among the members of the management body;
the members of the management body and the persons related to them must not sit on the management bodies of another sports club that is a member of the same sports federation.

REGISTRATION OF A SPORTS CLUB AS A COMMERCIAL COMPANY

The specific set of documents for entry of the sports club in the Commercial Register depends on whether it will be registered as a limited liability company or as a joint-stock company.

For the registration of a sports club as an EOOD or OOD, the following are required:
Application, form А4
Minutes of incorporation
Instrument of incorporation or articles of association, together with a copy thereof with personal data redacted
A notarised specimen of the manager’s signature (specimen)
Declarations under Article 142 and Article 141(8) and (9) of the Commerce Act, signed by the manager
A declaration under Article 13(4) of the Commercial Register and Register of Non-Profit Legal Entities Act, signed by the manager
A declaration under Article 13(5) of the Commercial Register and Register of Non-Profit Legal Entities Act, where the documents are filed through an authorised representative
Pay-in slips or a bank certificate for the contributed capital
A payment order for the State fee paid for registration
A power of attorney

Depending on the specific factual circumstances, the submission of other additional documents may also be required.

For the registration of a sports club as an EAD or AD, the following are required:
Application, form А5
Minutes of incorporation
A list of the shareholders who have subscribed shares in the capital
Articles of association, together with a copy thereof with personal data redacted
Minutes of a meeting of the Board of Directors, or of the Management Board as the case may be, on the election of an executive director
Minutes of a meeting of the Supervisory Board on the election of the Management Board
Minutes of a meeting of the Supervisory Board approving the decision of the Management Board on the election of an executive director
A notarised specimen of the executive director’s signature (specimen)
A declaration under Article 160(2) of the Commerce Act, signed by the founders
A notarised declaration under Article 234 of the Commerce Act, signed by each member of the Board of Directors, the Management Board and the Supervisory Board
A declaration under Article 13(4) of the Commercial Register and Register of Non-Profit Legal Entities Act, signed by the executive director
A declaration under Article 13(5) of the Commercial Register and Register of Non-Profit Legal Entities Act, where the documents are filed through an authorised representative
Pay-in slips or a bank certificate for the contributed capital
A payment order for the State fee paid for registration
A power of attorney

Here too, depending on the particularities of the case, the submission of additional documents may be required.

REGISTRATION OF A SPORTS CLUB AS AN ASSOCIATION

Both Bulgarian and foreign natural persons may be founders of a sports club in the form of an association.

Where the association is for private benefit, the sports club may be established by a minimum of 3 natural persons.

Where the sports club is an association designated for carrying out public-benefit activity, the founders must be at least 7 natural persons.

For entry of the sports club in the Register of Non-Profit Legal Entities, the following are required:
Application, form А15
Minutes of the Constituent Assembly and a copy thereof with personal data redacted
A list of the founders bearing the handwritten signature of each person
Articles of association
A notarised specimen of the signature of the persons who represent the association (specimen)
A declaration under Article 13(4) of the Commercial Register and Register of Non-Profit Legal Entities Act
A declaration under Article 13(5) of the Commercial Register and Register of Non-Profit Legal Entities Act, where the documents are filed through an authorised representative
A payment order for the State fee paid for registration
A power of attorney

If the constitutive documents provide for the payment of initial property contributions, evidence of the contributions made must be attached to the application. Depending on the particularities of the specific case, other additional documents may also be required.

STATE FEES

The fees for registration in the Commercial Register and in the Register of Non-Profit Legal Entities are as follows:

for a sports club – association: BGN 50 where the documents are filed on paper, and BGN 25 where filed electronically;
for a sports club – EOOD or OOD: BGN 110 where filed on paper and BGN 55 where filed electronically;
for a sports club – EAD or AD: BGN 180, in which case the documents may be filed solely by electronic means.

If you require legal advice or assistance with the registration of a sports club, contact us by telephone: 0887550706 or by e-mail: [email protected]