Closing a Bulgarian Community Centre (Chitalishte) — Liquidation Procedure and Requirements (2026)

Legal framework

Closing a chitalishte is governed by several statutes that apply in parallel. Knowledge of all of them is essential because a failure under any one of them can block the final deletion from the Register of Non-Profit Legal Entities (NPLE).

• Community Centres Act (ЗНЧ) — the special statute governing the status, activities and termination of chitalishta.
• Non-Profit Legal Entities Act (ЗЮЛНЦ) — applicable subsidiarily, including for the liquidation proceedings.
• Commercial Register and NPLE Register Act (ЗТРРЮЛНЦ) — governs filings and declarations before the Registry Agency.
• Article 77 of the Tax-Insurance Procedural Code (ДОПК) — requires a tax certificate from the National Revenue Agency (NRA) prior to any termination of an NPLE.
• Social Security Code (КСО) — governs the submission of payroll records to the National Social Security Institute (NSSI).

Grounds for termination

A chitalishte may cease to exist in two principal ways — voluntarily or by court order. The difference lies in who initiates the procedure, on what grounds, and with what burden of proof.

1. Voluntary termination

The decision is taken by the General Assembly of the chitalishte — its supreme body. This is the most common scenario, especially for smaller community centres in depopulated regions where the activity can no longer be financially sustained.

2. Court-ordered termination

Where a chitalishte has not carried out any activity for two consecutive years, the Minister of Culture is obliged to notify the Prosecutor's Office. The prosecutor then files a motion with the regional court, which issues a decision on termination. This mechanism is designed to prevent the existence of “dormant” chitalishta that collect public subsidies without real cultural activity.

Voluntary liquidation procedure

Voluntary liquidation begins with a decision of the General Assembly that must meet heightened requirements for majority and content.

• Majority: the decision to terminate requires the approval of at least 2/3 of all members of the chitalishte — not of those present, but of the full membership list.
• Liquidation period: the General Assembly sets the period of the liquidation, which cannot be shorter than 6 months. This period begins to run from the date the notice to creditors is published.
• Liquidator: the decision also appoints a liquidator — the person who assumes management of the chitalishte for the purpose of winding up its activity, realising its assets and settling its liabilities.

It is advisable to choose a liquidator with legal or accounting background — board members rarely have the experience needed to run the procedure correctly.

Court-ordered termination

Where the Minister of Culture establishes that a chitalishte has not carried out any activity for two consecutive years, the Minister notifies the competent prosecutor. Several stages follow:

1. The prosecutor files a motion with the regional court at the seat of the chitalishte.
2. The court hears the case and issues a decision on termination.
3. In the same or a subsequent decision, the court appoints a liquidator and sets a deadline for completion of the liquidation.
4. The court's decision is forwarded ex officio to the Registry Agency, which enters the termination in the NPLE Register.
5. If the court only rules on termination without appointing a liquidator, the Registry Agency appoints an ex officio liquidator.

A court-ordered procedure typically takes an additional 4–8 months compared to a voluntary one, but here the initiating party is the state rather than the chitalishte itself.

Step 1: Notice to NRA under Art. 77 DOPK

Before any entry in the NPLE Register, the liquidator must file a notice with the local NRA office of registration. The purpose is for the NRA to review the accounting records and determine whether any unpaid public liabilities exist.

• Period for issuing the certificate: generally 2 months, extendable in complex cases.
• Scope of review: tax returns, annual financial statements, social contributions, VAT (if the chitalishte is registered), income tax on employees.
• Outcome: if no liabilities are found — a certificate under Art. 77 DOPK. If liabilities exist — instructions for settlement before the procedure can continue.

The certificate is a mandatory requirement for the application to the NPLE Register — without it, the Registry Agency will not register the liquidation.

Step 2: Registering the liquidation in the NPLE Register

Once the NRA certificate has been obtained, the liquidator files Application Form B6 with the Registry Agency to register the termination and open the liquidation proceedings.

The following documents must be enclosed:

1. Application Form B6.
2. Minutes of the Board meeting convening the General Assembly.
3. Notice of the General Assembly and evidence of its service (as per the statute).
4. Minutes of the General Assembly with personal data redacted.
5. Current list of members of the chitalishte.
6. List of members present at the General Assembly.
7. Notarised specimen signature of the liquidator.
8. Certificate under Art. 77 DOPK.
9. Declaration under Art. 13(4) of the NPLE Register Act, signed by the liquidator.
10. Power of attorney, if the application is not filed in person.
11. Proof of payment of the state fee.

Advantages of filing through a lawyer

Where the application is filed by a lawyer, two key advantages apply:

• No notarisation required for Application B6 — a lawyer's power of attorney is sufficient.
• 50% discount on the state fee for electronic filing through the Registry Agency's portal.

Step 3: Notice to creditors

Immediately after the liquidation is registered, the liquidator must publish a notice to creditors in the NPLE Register. This is not a formality — it marks the start of the six-month minimum period for liquidation.

The following documents are filed for publication of the notice:

• Application Form G1.
• Text of the notice to creditors.
• Declaration under Art. 13(4) of the NPLE Register Act.
• Power of attorney (if filed through a lawyer).
• Proof of payment of the state fee.

Important: even if the chitalishte has no known creditors, publication of the notice is mandatory — it triggers the period within which creditors may present their claims.

Step 4: Duties of the liquidator

During the six-month period, the liquidator has a number of concrete duties, some of which are relevant for the subsequent deletion.

Filing documents with NSSI

If the chitalishte had employees, the liquidator submits to the relevant territorial office of the National Social Security Institute:

• Payroll records.
• Employment contracts.
• Appointment and termination orders.
• Supplementary agreements.
• Records of unpaid leave exceeding one month.

NSSI carries out a review of paid social contributions and issues a certificate which is a mandatory requirement for the deletion from the register.

Accounting documents

• Opening liquidation balance — as of the date the liquidation is opened.
• Closing liquidation balance — as of the date the liquidation is completed.
• Explanatory report accompanying the closing balance, describing how assets were realised and liabilities settled.
• Annual activity report for the year in which the liquidation was completed.

Distribution of assets

The distribution of assets after creditors have been satisfied is one of the most sensitive issues in the liquidation of a chitalishte. The rules are as follows:

• As per the statute — first, the provisions of the chitalishte's statute apply, if it designates a recipient.
• Decision of the General Assembly — if the statute is silent, the General Assembly determines the recipient by a separate decision.
• Typical recipients — most often the assets are transferred to the municipality in which the chitalishte is seated, or to another organisation with a similar cultural and educational purpose.
• Prohibition: the assets cannot be transferred to the parent chitalishte association (the umbrella union in which the chitalishte is a member). This is an express statutory prohibition designed to prevent concentration of assets.

If the chitalishte owns buildings or land, the transfer is effected by notarial deed, which is then enclosed with the application for deletion.

Step 5: Deletion from the NPLE Register

Once the six-month period has elapsed, assets have been realised and the closing balance has been approved by the General Assembly, the liquidator files Application Form A17 for deletion of the chitalishte.

Required documents:

1. Application Form A17.
2. NSSI certificate confirming submission of payroll records and payment of social contributions.
3. Minutes of the General Assembly approving the closing balance, explanatory report and discharging the liquidator from liability.
4. Minutes of the Board convening the General Assembly.
5. Notice of the General Assembly.
6. Current list of members.
7. List of members present at the meeting.
8. Evidence of the transfer of assets (notarial deeds, handover protocols).
9. Declaration under Art. 273(1) of the Commerce Act, signed by the liquidator — confirming that all liabilities have been settled.
10. Declaration under Art. 13(4) of the NPLE Register Act.
11. Power of attorney.
12. Proof of payment of the state fee.

Step 6: Deletion from the Ministry of Culture register

In addition to the NPLE Register, every chitalishte is entered in the special register of community cultural centres kept by the Ministry of Culture. Deletion from this register is a separate procedure initiated by a written application to the Minister.

The application must be accompanied by evidence of the deletion from the NPLE Register and of the distribution of assets. Only after this step does the chitalishte cease to exist as a cultural and educational association in the full sense of the term.

State fees

From 1 January 2026 the Registry Agency's fees are denominated in EUR. The indicative amounts for a chitalishte liquidation are:

On top of the state fees, one should budget for notarisation of the liquidator's specimen signature, any notarial deeds for the transfer of assets, and legal fees.

Realistic timeline

Although the statutory minimum is 6 months, the real duration of the entire procedure is significantly longer:

• 2 months — NRA review and issuance of the Art. 77 certificate.
• 6 months — minimum liquidation period, running from the date the creditor notice is published.
• 1–2 months — preparation of closing documents, General Assembly to approve the balance, filing of Application A17.

The realistic total duration for a voluntary liquidation is 8–12 months. Where termination is court-ordered, additional time must be added for the court proceedings — usually another 4–8 months.

Frequently asked questions