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Major changes in Bulgarian gambling regulation
In a recent legislative update in the Bulgarian Gambling Act, major changes to regulations governing organisers of gambling games and activities and gambling advertisements have been introduced. Most of the amendments enter into force on 18 May 2024. These amendments entail substantial alterations to the activities of gambling organisers, bans on advertisements (including an updated definition of gambling advertisement), and measures affecting service providers connected with the gambling industry and can be divided into the following sample groups: Advertisements ban For example: gambling advertisements on, among others, television, radio, newspapers and online media (including websites) have been totally
Investing in a variable capital company in Bulgaria
In less than two months, businesses will have the opportunity to start using a new corporate vehicle available in Bulgaria – the variable capital company (“VCC”). The VCC structure has been designed to give more flexibility to founders and start-ups while reducing initial incorporation costs. But does this flexibility also benefit investors? Below are some considerations that investors should keep in mind before investing in a VCC: Increased importance of a thorough corporate due diligence – To date, entrepreneurs in Bulgaria have tended to use limited liability companies to start their businesses. Investors can quickly and easily verify the title over shares and the capital and shareholding structure
Update on the ESG reporting obligations in Bulgaria, Croatia, the Czech Republic, Hungary, Romania and Slovakia
CSRD implementation: regional progress uneven as deadline draws near As the 6 July 2024 deadline for implementation of the EU Corporate Sustainability Reporting Directive (EU) 2022/2464 (the "CSRD") approaches, a new landscape of reporting standards is beginning to take shape across Central and Eastern Europe ("CEE"). Three of the six countries in CEE (the Czech Republic, Hungary and Romania) adopted legislative acts in the beginning of 2024 that, at least partially, implement the CSRD into national legislation. The progress in Slovakia, Bulgaria and Croatia however has been slower. Our third status update on the CSRD implementation in Bulgaria, Croatia, the Czech Republic, Hungary, Romania and Slovakia is available here. For
Amendments to the Bulgarian Labour Code
Strengthening the home-office regime and enhancing remote workplace safety As workplaces evolve and remote work remains prevalent, amendments to the Bulgarian Labour Code have been recently adopted to reshape the regulations governing home-office arrangements and remote workplace safety standards. The amendments further address the impact of digitalisation and new technologies on work and aim to improve the work-life balance of employees. Mandatory specification of remote workplace An important change is the explicit requirement to define the exact address of the remote workplace. This is already the case in practice, also in line with the authorities’ guidelines. Better clarity in the law will further help to ensure compliance
Kinstellar advises UEG on the acquisition of a solar project in Bulgaria with a forecasted capacity of 250 MW
April 2023 – Kinstellar has supported United Energy Group (UEG)’s internal legal team, Leslie Zhang, Yu Zheng, Yao Liu and other UEG in-house counsels, on the acquisition of Green Profit EOOD, a developer of a photovoltaic (PV) project under construction. The Simeonovgrad-Polyanovo PV project, located in southern Bulgaria, has a forecasted capacity of 250 MW. Kinstellar led and negotiated the entire transaction, including the share purchase agreement and other transaction documents. UEG is a Hong Kong-based producer of traditional and renewable energy that has recently expanded its presence in the European energy market. The multi-disciplinary team that advised UEG was led by Nina Tsifudina (Partner) and Atanas Mihaylov (Counsel)
Get ready for the new foreign direct investment screening regime in Bulgaria
A foreign direct investment screening mechanism entered into force in Bulgaria on 12 March 2024. The mechanism applies Regulation (EU) 2019/452, establishing a framework for the screening of foreign direct investment (“FDI“) into the Union. This is a significant development in the regulatory landscape governing foreign investments in Bulgaria, although some uncertainty remains as to its impact. Due to certain lack of clarity in the final text of the legislation, each investment should be carefully analysed on a case-by-case basis, especially during the transition period. Investments requiring an FDI approval According to the bill amending the Investment Promotion Act (“IPA”), an investment in Bulgaria is
Update: ESG reporting obligations in Bulgaria, Croatia, the Czech Republic, Hungary, Romania and Slovakia
With the 6 July 2024 deadline for the implementation of the EU Corporate Sustainability Reporting Directive (EU) 2022/2464 (the "CSRD”) looming, Member States across the EU have been moving at different speeds to adopt their respective local implementing legislation. Our second status update on the CSRD implementation in Bulgaria, Croatia, the Czech Republic, Hungary, Romania and Slovakia is available here. At the time of writing, three of the six countries in Central and Eastern Europe that we have been following – the Czech Republic, Hungary and Romania – have already adopted legislative acts that, at least partially, implement the CSRD into national legislation. Slovakia has brought a draft act to parliament
Kinstellar’s Sofia office welcomes Boryana Boteva as Head of Projects & Infrastructure
Kinstellar Sofia expands its Projects & Infrastructure service line with the addition of Boryana Boteva who joins the firm as a Senior Counsel and Head of Projects & Infrastructure in Sofia. With over 25 years of experience in public procurement, public-private partnerships and project finance, Boryana is a prominent legal expert in the field. Her practice also focuses on corporate, M&A, international arbitration, commercial litigation and international taxation. Boryana has acted as an advisor to Bulgarian public institutions on flagship projects in the infrastructure and energy sectors. In addition, she has advised on a wide range of financings of business activities or specific projects in Bulgaria
Heads up: Overview of the proposed amendments to Bulgaria's Electronic Communications Act
A draft law amending the Electronic Communications Act was published for public consultation on 15 December 2023. As the Digital Services Act will start to apply for all providers of intermediary services from 17 February 2024, the Proposal aims to provide the national implementing measures – to designate the competent authority to be responsible for the supervision of those providers (the so-called Digital Services Coordinator) and to establish specific procedures for the exercise of its powers. What’s more - the Proposal is used as an instrument to introduce additional measures facilitating the construction of network infrastructure. The Proposal may have escaped the attention of many stakeholders, not only because
ESG reporting obligations in Bulgaria, Croatia, the Czech Republic, Hungary, Romania and Slovakia
Since the ESG reporting obligations in the EU, i.e. the Corporate Sustainability Reporting Directive (CSRD) entered into force earlier this year, the transposition clock has been ticking for Member States with a deadline expiring on 6 July 2024. Kinstellar’s ESG team is closely monitoring the implementation process in all EU countries where we are present. Our first status update on the CSRD implementation in Bulgaria, Croatia, the Czech Republic, Hungary, Romania and Slovakia is available here. At the time of writing, the Czech Republic, Hungary, Romania and Slovakia have proposed draft laws implementing the CSRD, while Bulgaria and Croatia have set up working groups to prepare draft legal acts. In any event
Cannabis use: CEE regulatory update
Significant changes in the regulation of cannabis use have occurred in some countries in Central and Eastern Europe since our last report. In addition to a number of countries gradually legalising the use of cannabis for medical purposes, increasing efforts by some countries are being seen to also legalise the use of cannabis for recreational use, as well as the use of other products containing various cannabinoids, most importantly cannabidiol (CBD). Click here to read a summary of recent changes related to the national regulation of this rapidly growing sector across Central and Eastern Europe. For any other details or information, please contact Tomáš Čihula, Partner. Contributors:
Legal aspects of the use of sustainable finance instruments in Bulgaria
The Banking, Finance and Capital Markets team in our Sofia office carried out a training session on the legal aspects of the use of sustainable finance instruments with a focus on green loans, social loans and sustainability-linked loans. The variety of ESG financing instruments allows for some flexibility in the choice of targets and KPIs; still ESG loans should follow the clearly established sustainable finance principles to avoid the risk of declassification or greenwashing claims. In addition to contributing to sustainability goals, these instruments have a wide range of advantages, including economic and reputational benefits. As they are becoming increasingly popular, we will continue monitoring the legal and regulatory