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Registration of a sports club in Bulgaria
Registration of a sports club in Bulgaria
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The registration process of a sports club is important for any organization aiming to create a structure with activities for the development of sports and physical activity in Bulgaria. When creating a sports club, especially in regions such as Burgas and Varna, it is necessary to consider a number of steps and requirements. The first question that customers usually ask is related to the necessary “documents for registration of a sports club”. This information includes various legal documents that establish the legal status of the club as a non-profit legal entity and allow its registration in the relevant registers of the Registry Agency. It is also essential to comply with the requirements of the Law on Non-Profit Legal Entities and to present a detailed project for the creation of the sports club, defining its structure and governing bodies.

When registering a sports club with the Ministry of Youth and Sports, an important element is the process of legalizing the club's activities before the relevant institutions, which is necessary to ensure access to public funds and subsidies for sports events and development of the sports base. Private clubs that also wish to offer sports services and events should register and comply with specific legal and tax requirements. This is where the question of registering a sports club as a private club and what tax obligations arise from this often arises.

To ensure successful registration and proper management of the sports club, “Elan Consulting” can be a reliable partner in the process. The company offers accounting services of sports clubs and federationsassisting with expertise in all aspects of management and accountability. In this article we will examine in detail the necessary documents and requirements for the creation and registration of a sports club, including tax and legal aspects, so as to cover all the issues that Elan Consulting clients often face in the registration process.

What is a sports club under Bulgarian law?

According to the Law on Physical Education and Sports (ZFVS), a sports club is a legal entity whose purpose is the development and promotion of sports and physical activity through the organization of various sports activities and services. Sports clubs in Bulgaria can be established as non-profit associations or as capital commercial companies that aim to provide opportunities for sport at both individual and group levels (Article 12 (1) of the TFEU).

Sports clubs are basically divided into two types depending on the scope of their activities:

  1. Sports club for one sport or for similar sports— This type of club is aimed at the development of a specific sport or a group of similar sports, for example athletics or various types of martial arts. It may also include clubs engaged in military-applied sports, which are specified in a special list under Art. 8, item 11 of the Law (Art. 12, para. 2, item 1 of the ZFWS).
  2. Multisport Club— This type of club brings together different sports, while observing a general principle of unification, for example, to serve a certain age group or social category. Multisport clubs usually develop more than one sport and can be established on the basis of unifying criteria such as sports for students, people with disabilities, military personnel and others. A multi-sport club can also be set up for various institutions such as schools, universities or departments (Art. 13, para. 1 of the ZFVS).

According to the law, the sports club, as a rule, must meet the following requirements:

  • Name and subject of activity: In the name of the club, the words “club” and sports-oriented terms that indicate the specific sports activity of the organization must necessarily be present. The subject of activity should also include physical activity and sports, or a corresponding unifying principle if it is a multi-sport club (Art. 14, item 1 and item 1). 2).
  • Coaching staff: The sports club must have a contract with qualified coaches or instructors for the respective type of sport. For multi-sport clubs, this means at least one type of sport, for which qualified specialists are provided, with regulated rights and obligations in the contract (Art. 14, para. 3).
  • Membership and Organization: When the club is a non-profit association, its members can only be natural persons. The exception is the cases of sports clubs established by higher education institutions, where the participation of legal entities is also possible (art. 14, para. 4).

Sports clubs have the right to be members of licensed sports federations, which allows them to participate in national and international sports competitions organized by these federations. To become members of a sports federation, clubs must meet the following additional requirements:

  1. Not to be a member of another sports federation or multi-sport federation, unless expressly permitted by law.
  2. The members of the governing body of the club must not be affiliated persons and not have membership in the governing bodies of another sports club in the same federation, in order to avoid conflicts of interest (Article 15, paragraph 1, item 2 and item 3 of the PFSA).

To apply for membership in a sports federation, the sports club submits a statement certifying its compliance with the requirements of the law, as well as a list of coaching staff with evidence of their qualifications. In addition, the club must submit a list of sports facilities that it owns, uses or manages on a contractual basis (Art. 15, para. 2).

In addition to developing sports activities, sports clubs in Bulgaria have the right to offer sports services to citizens, organize training and competition activities and hold sporting events with the approval of the relevant sports federation. Sports clubs can also apply for funding and support with public funds, as well as hold rights for advertising and media coverage of sports competitions they organize (Art. 17, para. 1 of the PFA). In the event that a sports club is not a member of a licensed federation and is not entered in the register of the Ministry of Youth and Sports, it does not have the right to carry out some of the main activities of organizing competitions and participating in them (Art. 17, para. 2 of the ZFVS).

In view of the diverse requirements and regulations, sports clubs in Bulgaria are well-structured organizations that must comply with numerous regulatory requirements. The law clearly defines their legal capacity, rights and obligations in order to ensure the development of sport at local and national level.

What is a sports federation and when can a sports club become a member of a sports federation?

The Sports Federation in Bulgaria, according to the Law on Physical Education and Sports (FPE), is a non-profit association that carries out socially useful activities in the field of sport. The main objective of sports federations is to organize and coordinate the development of a specific sport or group of similar sports, and for this activity they must have a sports license (Art. 18, para. 1 of the PFA). The license is issued by the Ministry of Youth and Sports, and is a mandatory condition for the federation to be entered in the register of non-profit legal entities. The sports license is unlimited, being granted only to one sports federation for a particular sport or group of sports, in order to avoid competition and ensure effective management of sports activities (art. 19).

The types of sports federations recognized by law are:

  1. Federation of one or similar sports, which may also include military-applied sports specified in a list adopted by the Ministry of Youth and Sports.
  2. Multisport Federation— which brings together and develops more than one sport on the basis of a common unifying principle, such as sports for students, sports for people with disabilities and others (Article 18 (2) of the TFEU).

Members of sports federations can only be sports clubs that have met all legal requirements for their activities and have a valid registration. Membership in a sports federation is important for sports clubs, as it allows them to participate in competitions and tournaments organized by the federation, as well as the opportunity to participate in international sporting events through the representation of the federation before international sports organizations (art. 18, para. 3). Sports federations also represent their members before state bodies, protecting their interests and supporting the development of the respective sport at the national level.

To obtain a sports license, the sports federation must meet strict criteria, among which are:

  • Registration and financial stability: The Federation must be registered as a legal entity for public benefit activities, not be in bankruptcy or liquidation proceedings, and not have overdue obligations to the State or municipalities (Art. 20, para. 1-3).
  • Member base: The Federation must have at least 7 sports clubs, which are located in at least three different administrative districts in the country (Art. 20, para. 5).
  • Coaching and sports resources: The Federation or its members must have qualified coaching staff and have access to sports facilities for training and competition activities (Art. 20, item 6 et seq. 9).
  • Program and calendar: The Federation is obliged to draw up a 4-year program for the development of the respective sport, as well as an annual sports calendar for holding competitions and state tournaments (Art. 20, item 7 et al. 8).

Membership of a sports club in a sports federation becomes possible when the club meets the requirements of Article 15 of the CFSP, which include criteria for the qualification of the coaching staff, the existence of contracts with coaches, and the structural and organizational stability of the club. Membership in the federation allows the sports club to participate in events of the state sports calendar and to take advantage of the right of the federation to provide public funding for sports activities.

Sports federations play a central role in the management and development of sport in Bulgaria. They draw up rules for holding competitions and determine the conditions for card equipment and participation of athletes in different categories. The federations are also tasked with complying with anti-doping rules, ensuring disciplinary control, as well as maintaining standards for training and certification of judges and technical staff (Art. 27, para. 1 and para. 2).

Therefore, sports federations not only unite sports clubs, but also provide administrative and methodological support for the development of sports, exercise control functions and help the integration of Bulgarian sport into international organizations and competitions. This makes them a major factor in the success and promotion of the sport at national and international level.

What are the necessary documents for registration of a sports club?

For the registration of a sports club, the required documents vary depending on the legal form of the organization — whether the club is registered as a non-profit legal entity (ULNC) or as a capital company.

1. A sports club that does not intend to be a member of a federation

If the club does not plan to become a member of a sports federation, it should only register with the Commercial Register and the Register of Non-Profit Legal Entities (TRRULNC) and must submit the relevant documents according to the chosen legal form:

  • For registration of a commercial company (capital company) in TRRULNC:
    • Memorandum of association or contract— contains information about the founders, the amount of capital, shares and other organizational details.
    • Articles of association or company agreement— defines the legal structure of the company, including the objectives, management, distribution of profits and obligations of the partners.
    • Declaration of beneficial owners— a document certifying the ownership of the company.
    • Sample applicationfor registration of the company in the Commercial Register.
    • Documents for contributed capital— a certificate of the contributed capital showing that the company has the initial capital necessary to carry out the activity.
  • For the registration of a non-profit association (ULNC):
    • Memorandum of Association— contains information about the constituent assembly, including the names of the founders, the goals of the club and the decision to establish it.
    • Constitution— include the name of the club containing the word 'club', objectives and activities, governance structures, rights and obligations of the members.
    • List of members of the association— contains data on natural persons who are members of the club, except in cases where the club is established by a university.
    • Application form for registration in TRRULNC— includes information about the club, its founders and the subject of activity.

2. A sports club that intends to become a member of a licensed sports federation

In the event that the sports club intends to become a member of a licensed sports federation, after registering with TRRULNC, it must submit additional documents to the relevant federation. To meet the requirements of the federation and the Law on Physical Education and Sports, the sports club submits a declaration of compliance with legal requirements, including a commitment to comply with the regulated requirements for the organizational and personnel structure. Contracts with qualified coaches meeting standards of professional competence and qualification, and documents proving access to sports facilities — through deeds of ownership or lease and use contracts are required. The club must also present a budget that is current and approved for the relevant year, which serves to provide the necessary financial resources for sports activities. Thus, the list of documents includes:

  • Declaration of Conformitywith the requirements of Art. 15 of the Law — certifies that the club meets all requirements for membership in a federation, including organizational and personnel requirements.
  • List of coaching staff and their qualifications— evidence of the education, professional capacity and qualifications of the coaches, as well as their contracts with the club.
  • Documents for use of sports facilities— deeds of ownership, rental agreements or other documents showing the right to use the facilities necessary for training and competition activities.
  • Budget of the club— a financial plan that shows the projected expenses and revenues of the club, and ensures that the club has the resources to participate in sporting activities.
  • Application for membership in the federation— which is submitted to the federation for admission of the club as a member and contains information on the compliance of the club with the established requirements.

These additional documents are necessary to ensure that the club meets all the standards established by the federation and the law, and that it has the necessary resources to participate in sports competitions at the national and international level.

What registers does the Ministry of Youth and Sports maintain? When is a sports club required to sign up?

The Ministry of Youth and Sports maintains several key registers related to the activities of sports organizations in Bulgaria, as regulated in Art. 9, para. 1 of the Physical Education and Sports Act. These registers include:

  1. Register of licensed sports federations and sports clubs that are their members. This register includes information about all sports clubs that are members of licensed sports federations, thereby providing an opportunity to control and track their activities and their compliance with the state sports policy.
  2. Register of national organizations for sports tourism and university sports. This register covers the national sports and tourism organization, the national university sports organization and the affiliated sports clubs, together with their members, bringing together sports organizations engaged in sports activity and physical education at different levels.
  3. Register of sports facilities. This register maintains data on sports facilities on the territory of the country, including sports bases and facilities used by sports clubs and organizations. This supports the planning, maintenance and distribution of sports infrastructure.
  4. Register of coaching staff. This register contains information about qualified coaches in the country, ensuring that they meet certain standards and criteria necessary for the training and management of sports activities.

The registers are maintained in an open machine-readable format and their data are available on the website of the Ministry of Youth and Sports. The aim is to ensure transparency and easy access for other administrative authorities and citizens to this information. According to Article 9, paragraph 4 of the Law, administrative authorities are not entitled to require from applicants for administrative services certificates of the circumstances entered in these registers, which facilitates administrative service.

A sports club is obliged to enter the register of the Ministry of Youth and Sports when it becomes a member of a licensed sports federation. Este é regulado em Articulo 16, para. 1 de la ZFCS, que se especificada que a la entrada se a la base de una decisione en la admissione del club como membro de una federación de deportes. A registration is required for a sports club to carry out certain activities related to competition and training activities that require the approval of a sports federation. Thus, if the club is not registered as a member of a federation, it cannot organize competitions, participate in competitive events or apply for public funding for its activities.

Who declares the entry of a sports club in the register and what is the procedure?

A sports club's entry in the register of the Ministry of Youth and Sports is requested by a licensed sports federation when the club becomes its member. According to Art. 16, para. 1 of the Law on Physical Education and Sports, a decision to admit a sports club to the sports federation is made according to the established rules and statutes of the federation and serves as the basis for submitting the application for registration. A Fédération a 30 jours de l'accepció de la club à submitter une application pour l'entrée en la registro de la Ministère, a notifier le club de l'entrée. If the federation does not fulfill its obligation within this period, the sports club itself has the right to submit an application for registration, providing the relevant documents for its membership.

Een registrering procedure biedt dat toepassingen voor de registratie of een sportclub wordt ook uitgegeven met elektronische gegevens met de procedure van de Elektronische Document en Electronic Certificate Services Act en de Elektronische Gobiettelse. This facilitates the process by allowing a quick and convenient way to submit the documents. L'applicazione contiene informazioni sulla club, come evidenza di un membro della federazione sportiva, che consente l'entrata nel registrare in corrispondere in corrispondere con le requisiti della legale.

After submitting the application and the necessary documents, the Ministry of Youth and Sports enters the sports club in the register as an official member of the respective federation, which gives it the right to participate in competitive events, organize sports events and apply for funding under sports development programs.

Accounting and registration of sports clubs and sports federations

With experience and expertise in registering sports clubs and serving their specific needs, Elan Consulting offers comprehensive assistance, covering all stages from the establishment to the current accounting management of the club. Ne tenê karûbarên wan di pêşkêşkirina belgeyên pêwîst û lihevhatina bi hewcedariyên qanûnî de misoger dikin, lê di heman demê de şîreta li ser plansaziya bacê û qanûnî ya klûbê jî tê de hene, da ku çavkaniyan xweşbîn bibin û rîskan kêm dibin.

The company understands the peculiarities of sports as a socially significant activity and has experts who are up to date with the latest changes in legislation, including the Law on Physical Education and Sports. This competence allows Elan Consulting to offer customized solutions for each club, taking into account its specific needs and goals, both in the registration process and in the organization of accounting. Hesabkirina klûbên werzîşê hewceyê cûdahiyek baldar a dahat û lêçûnên têkildarî werzîşê û çalakiyên karsaziya zêde ye, û her weha rêveberiya hesabê dema fînansekirina bi fonên gelemperî Elan Consulting can take on these tasks, ensuring full compliance with accounting and tax requirements, thus freeing club managers to focus on sports and organizational activities.

In a dynamic environment such as that of sports, trust in “Elan Consulting” provides clients with the convenience and security of having a reliable partner both in Burgas and Varna, as well as throughout Bulgaria. With their services, sports clubs can confidently expand their activities, plan their future successes and take advantage of all opportunities for development and financing, knowing that their financial and legal obligations are in good hands.

Tax and accounting services in Burgas, Bulgaria and current prices for 2024
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