The liquidation is one of the ways for termination of a limited liability company under Bulgarian law. The procedure is regulated by the Bulgarian Commercial Law (Articles 154-157, Articles 266-274), the Corporate Income Tax Act — Chapter 21, the Commercial Register Act — Art. 4, Art. 6, para. 2, the Tax and Social Insurance Procedure Code (Article 77), the Social Security Code (Article 5, paragraph 10) and some other subordinate legislation.
The purpose of the liquidation procedure is to terminate the Ltd with its subsequent cancellation from the Commercial Register, and next the company ceases to be a legal entity and terminates its existence towards the state and third parties.