Inheritance of a Single Trader


Inheritance of a Single Trader

 
The Single Trader (ET) registration is the fastest, easiest and easiest way for an individual to start commercially officially. This is the most popular legal form of organization where the activity is not related to large cash turnover and engagement of many staff. The choice of this form of doing business is associated with a number of advantages such as:
 
1. there are no burdensome requirements for capital injections,
2. There is no formalization of the owner's decisions
3. the activity is generally carried out with minimal administrative costs.
 
With the registration of ET no new legal entity arises, but only the legal capacity of the natural person - owner is extended. This in turn is a prerequisite for the occurrence of a number of inconveniences both in life and in the death of the trader and the succession of his business. Since the assets of the ET enterprise and the property of the individual are a single entity and are part of the hereditary mass, the heirs (which are usually few) often face the challenge of agreeing whether and how to continue the business.
 
Continuation of activity
 
After ET's death, the first step of the heirs is to obtain a heir certificate, which shows who inherits the trader. If the heir has many debts exceeding his assets, it is best to deny an inheritance, with the refusal not only covering the property of the ET enterprise, but the entire property of the deceased.
 
If the heirs still choose to take ET, they have to designate one of them to acquire ET status and continue the activity of the heir. This is usually done with an agreement that is notarized. According to the case law (Decision No. 491 / 22.07.2005 on the City of Sofia, HCCC), such an agreement is a means of terminating co-ownership between the heirs with regard to the assets of ET as an enterprise. Except by agreement, the successor to the company may be determined by a voluntary or judicial split. The successor himself may also have identified the successor of the company in advance with a will.
 
Once the heirs determine who assumes the activity of the ET, the selected successor submits an Application Form A1 to the Registry Agency to the Registry Agency, which initiates the procedure for his registration as an ET, together with a Form B1 application, which transfers the enterprise from the deceased to the heir. The old name of the ET adds its own personal and family name (or father's name) to the heir and the new company receives a new UIC. If the heir is already registered as an ET, he / she does not need to file an Application Form A1, but can directly acquire the business as he / she already has the status of a trader. In this case, I may not change my company either.
 
If the ET had personnel, upon the assumption of the enterprise by the heir, the labor contracts with the workers and / or the employees who worked with the deceased are not terminated, but by virtue of Art. 123 LC rights and obligations are transferred to the new employer, which is notified to the NRA by a notification of change of employer.
 
Deletion of ET
 
If they do not wish to continue the activity after the deceased's death, the heirs have the opportunity to request the deletion of the ET and to distribute the property as part of the entire hereditary table. In this case, it is necessary to follow the established ET erasure procedure.
 
Special cases
 
An unpleasant problem arises if the heirs want the activity not to be interrupted, but all (or at least the adults) exercise an activity or profession and have a status that is legally incompatible with doing business as an ET. For example, a job as a civil servant or an employment contract in a state administration is incompatible with the ET status. A possible decision in such cases is to set up EOOD by the willing to continue the activity of the successor, who becomes the owner of the company's capital, but a trustee is appointed as the manager of the company. The ET enterprise is then transferred to the newly established EOOD. For this purpose, however, the technical successor will have to be entered in the Commercial Register as ET and take over the successor's business and then transfer the acquired enterprise to the newly established EOOD.
 
Difficulties arise when heirs are minors who have no commercial capacity and can not carry out business as an ET. In this case, the relevant legal representatives may proceed according to the previous paragraph with the registration of EOOD or directly delete the ET of the legator.


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Inheritance of a Single Trader Inheritance of a Single Trader