The registration of a new company takes 1 to 4 days – this includes preparing the necessary documents for submission to the Commercial Register.
VAT registration is a free service like yours documents can be submitted online.
The deadline for registration of VAT company takes 14 working days from the date of the application for registration.
Deadline for submission of monthly VAT return – submission of monthly VAT return is 14 th including the month following the tax period to which it relates.
Publication of Annual Financial Statements
The financial statements should be filed to the Bulgarian Trade Registry also and this is obligatory to all companies.
The deadline for this is:
1. for sole traders – 31 May;
2. for limited liability companies – 30 June;
3. and all other traders within the meaning of the Commerce Act – within 31st July.
It is important that these expenses should be connected to the popularization of the activity of the company.
The tax rate of these expenses is 10% of their value. The sum should be paid and declared once after the end of the financial year.
The payment of taxes ( how is it paid and how )
The corporate tax is paid once at the end of the financial year which is March 31st. The rate of the corporate tax is 10% charged on the amount of your annual profit. About how the payment of the taxes happens – almost all of our customers provide us passive access to their online banking. This means that we receive special user name and password for accounting needs so that we could upload the payment orders in the online banking and the customers just to approve them.
Insurance ( for the people involved in the company )
There is no limit according to the Bulgarian legislation about the number of the employees that a company must have. For example you could work only by yourself as manager of the company or you could either have 10 or more employees – it depends on you. As for the insurances rate – in Bulgaria each job position that you want to assign staff to, have a minimum wage. This amount is individual for each job position and it is linked to the activity of your company and your vision for the amount of the employees’ salaries. On the amount of the employees’ salaries you owe insurances. Their rate is 17.8 % on the behalf of the employer. The minimum wage in Bulgaria for 2016 is 420 BGN. The insurances are paid the same way as taxes.
The first stage of this process is the dissolution of the company which could be initiated by passing a resolution by the shareholders for closing the company down. For the purpose of dissolving the company, it is also necessary for the manager of the company to notify the Tax Office of the dissolution process. The Tax office then issues a certificate under art.77 of the Tax Code certifying that the company does not have tax obligations towards the State. The above Certificate should be sent directly by the Tax Office to the Trade Register. It is also necessary for the General Assembly of the shareholders to appoint a liquidator and to determine the deadline for liquidation which could not be less then 6 months. All documents related to the above actions should be presented before the Trade Register. If they are correctly prepared, the Trade Register should change the status of the company from “active company” to a ‘company in process of liquidation”. In the case where there are missing documents or incorrectly prepared documents there is a possibility that the Trade Register will refuse publishing the above circumstance.
As at the time of starting the dissolution process, the company would still be in business relations with third parties and such relations could not be terminated immediately, for the duration of this process the company would still exists as a legal entity. Its commercial activity however could be stopped. Whether the company will be active during the process of its liquidation depends on the decision made by the shareholders (The General Assembly) on the General Meeting. If the shareholders decide so, during the process of its liquidation, the company would not be allowed to participate in any commercial transactions or to sign any commercial contracts. However, they could decide instead that the company shall participate in the commercial transactions. In any event this decision of the General Assembly should be published in the Trade Register.
The dissolution process should be finished within a specified deadline –a minimum of 6 months. In every individual case this deadline is specified by the shareholders in the General Assembly but it is always at least 6 months. The main goal of this time period is for the existing business relations between the company and third parties to be concluded and for the assets and shares to be divided between the shareholders.
After this deadline expires, the second stage of the liquidation process commences, The General Assembly is summoned again and the relevant legal documents for the final liquidation and deleting the company from the Trade Register are prepared. Along with the respective Protocol from the General Assembly’s meeting, the company should present before the Trade register a Certificate from the National Insurance Institute, notifying that the company has no obligations towards the National Insurance Institute ( it actually means that the national insurance of the employees has been paid by the company). The company is also obliged to present before the Trade Registry the specified in the Commercial Code accountancy documents.
Upon receipt of all documents and a satisfactory check, the Trade register would erase the company’s entry from its records.
According to Art. 38, para. 4 of PITA (Law On the Taxation Income of Physical Persons) withholding tax on the income from liquidation shares is determined on the positive difference between the liquidation value of the share and the documented cost of the share in the company – 10 %.