Attention, representatives! “The doors are closing!”

New difficulties

Back when the amendments to the Foreigners Act in Bulgaria were still under discussion, it became clear that obtaining and extending a long-term residence permit would become harder. First the documentation requirements were tightened, and now the representatives themselves are being treated more strictly.

Even if the representative office in Bulgaria is duly registered, the parent company has an impeccable reputation and conducts its business properly, and all the documents are in order, there is still a chance of being refused a type D visa or a long-term residence permit. The grounds given for refusals sound rather strange: doubts are voiced as to whether all the requirements have been lawfully met, or suspicions are raised that the activity is fictitious. At the same time, the Migration Directorate officers provide no specific evidence whatsoever.

Grounds for doubt may include the fact that several representative offices are registered at the same address, or that there have been too many changes in the office’s operations. Suspicion is also aroused by what the inspecting authorities consider an excessive number of representatives, even if there are only three or four of them.

What should you do?

Inspections of representative offices’ activities have already begun in Sofia, and they will soon start in the other regions. Representatives need real results to show for their work. Following these inspections, many have been refused an extension of their long-term residence permit, and this applies both to those who arrived in Bulgaria recently and to those who have been here for several years. Based on the results of an inspection, people may be required to leave the country within 14 days or to go to court.

The time has come to start operating lawfully, all the more so because for representatives, working in their own representative office is the only legal way to earn income through the parent company. Work plans must actually be carried out, and it is worth making sure you have evidence of your activity on hand.

How can a representative office carry out real work? Above all, there is potential in the service sector, without importing any goods into Bulgaria, involving settlements with another country. This may be consulting, as well as other services performed remotely, including on an outsourcing basis, with third-party specialists brought in. Since many sectors in Bulgaria are still underdeveloped, foreign companies have something to offer on the local market.

The fictitious use of representative offices is now out of the question. Many foreigners believe that it is enough to obtain a certificate from the Bulgarian Chamber of Commerce and Industry (BCCI) by any means in order to live in Bulgaria lawfully. But that is not the case. At present there are usually no complaints about the representative offices themselves if the documentation is drawn up properly. Representatives, however, are held to strict account when suspicions arise that foreigners are obtaining a long-term residence permit unlawfully, without working in the representative office and merely using it to obtain documents as grounds for the permit — in other words, simply pretending to be hard at work. Even if a residence permit has already been issued, it may subsequently be revoked.

So the choice is a narrow one: either work for real or lose your long-term residence permit. Naturally, in such a situation you need to approach planning responsibly. For example, if you want to be added to someone else’s representative office, you need to assess how real its operations in Bulgaria are. Only a serious and careful approach will help you avoid unpleasant surprises in such a situation.