After its Liberation in 1878, Bulgaria
proceeded to build up a legal system which was to lay the
foundations of a democratic society, with private enterprise being
the chief driving force of the economy.
Following the socialist revolution in
1944, the legal system and legislation served the purpose of
fortifying the economic framework of socialist society. A number of
laws adopted in the first years of socialism put public property
and socialist planned economy in the foreground. Private property
was rejected and certain laws were passed stipulating the
expropriation of private means of production, the collectivization
of farm land, and finally, the nationalization of personal property
of citizens - housing, and others.
The changes that took place in Bulgaria in
1989 brought about the onset of speedy passing of legislation to
allow the transition from a socialist planned economy to market
economy. There began a process of reestablishment of the pre-1944
democratic legal traditions and adoption of modern legislation
tendencies in the advanced western countries.
The objective of the present paper is to
provide an overview of the legal framework of the private sector by
considering the following aspects:
1. Legal framework of
property.
2. Legal status of commercial
entities and their interrelations in the process of carrying out
economic activity.
3. Taxation.
4. Legal framework of foreign
investments and their role for private sector
development
