Excellent accounting services are provided by our new Bulgarian office to Bulgarian companies. Our particular areas of expertise for Bulgarian companies include tax filing and financial reporting.
Our local experience generates accurate, fast, Bulgarian-compliant financial reporting. We file taxes for you, removing local tax law concerns. We take care of compliance and financial reporting so you can focus on expanding your company.
Local and international businesses operating in Bulgaria receive tailored client service. Our industry knowledge and personal touch provide the best service available to every client. Trust experts in your financial management to free you to concentrate on your corporate objectives.
Automated OSS filing for import traders and e-commerce.
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Delivering and processing invoices, bank statements, and agreements (such as your lease) is becoming increasingly straightforward. The House of Companies simplifies the submission of your data by providing a single source for all documents, data, and reports in Bulgaria.
With our system, you can monitor progress and track your profits in real time!
Bulgaria's accounting regulations aim to establish transparency and accountability within businesses, ensuring a fair representation of their financial standing. These regulations are primarily governed by the Bulgarian Accounting Act, which aligns with International Financial Reporting Standards (IFRS) for public interest entities and the Bulgarian National Accounting Standards (NAS) for other businesses. The Commerce Act further specifies financial reporting requirements for companies based on their size and nature, establishing different obligations for micro, small, medium, and large entities.
All companies operating in Bulgaria are required to maintain accurate and updated financial records, with financial statements prepared annually in accordance with the legal format outlined in the Accounting Act. These statements typically include a balance sheet, income statement, cash flow statement, and explanatory notes, offering a true and fair view of the company’s financial position. Depending on the size and type of company, the financial statements must either be submitted to the Bulgarian National Revenue Agency or published in the Commercial Register to ensure public accessibility and compliance.
Bulgaria mandates audits for medium and large enterprises, as well as companies meeting specific criteria, such as exceeding certain revenue or asset thresholds. Companies falling within these parameters are required to have their financial statements reviewed by an independent registered auditor. Additionally, to comply with Bulgarian regulations, businesses must also adhere to rules on tax reporting, payroll, and corporate governance, making it crucial for companies to stay up-to-date with the latest requirements to avoid penalties and ensure efficient operations.
In Bulgaria, the concept of substance refers to the genuine economic presence and operational activities of a company within the country. This includes having a physical office, local employees, management oversight, and a business purpose beyond mere registration. For companies seeking to establish a base in Bulgaria and benefit from its relatively low corporate income tax rate of 10%, demonstrating substance is crucial. Authorities scrutinize whether a company genuinely conducts its business activities in Bulgaria or if it is merely using its registration to gain tax advantages without significant local operations.
Companies lacking substance—those with minimal or no local staff, operations, or decision-making activities—risk being classified as "shell" or "letterbox" companies by the Bulgarian tax authorities. Such companies may face challenges in defending their tax residency status under Bulgarian law and may be subjected to additional scrutiny regarding their eligibility for tax benefits, such as the application of Bulgaria’s double tax treaties or tax exemptions. Bulgarian tax authorities could potentially reclassify income generated by non-substance entities, leading to higher taxes or penalties.
The distinction between substance and non-substance is also significant in the context of transfer pricing and cross-border transactions. Companies with inadequate substance could struggle to justify transfer pricing arrangements between related entities, particularly if there is no economic rationale or real business activity behind those transactions. Establishing substance in Bulgaria not only helps in mitigating tax risks but also strengthens a company’s standing during audits and compliance checks, ensuring it can maintain favorable tax treatment while operating legitimately within the country.
Limited Liability Company (OOD)
The most common type of business entity in Bulgaria for non-residents is the Limited Liability Company (OOD). It offers flexibility and limited liability protection, making it attractive for foreign investors. The minimum capital requirement is relatively low, and it can be established by one or more individuals or legal entities, including non-residents.
Joint Stock Company (AD)
For larger-scale operations or when planning to go public, non-residents may opt for a Joint Stock Company (AD). This entity type is suitable for more substantial investments and offers the possibility of issuing shares. It requires a higher minimum capital than an OOD and has more complex governance structures, including a board of directors or a management and supervisory board.
Branch Office
Non-resident companies can also establish a branch office in Bulgaria. While not a separate legal entity, a branch can conduct business activities on behalf of the parent company. This option is often chosen by foreign companies looking to expand their operations into Bulgaria without creating a new legal entity. Branches are subject to Bulgarian law and must be registered with the Commercial Register.
Tax Registration and Compliance
When establishing a branch office in Bulgaria, the parent company must register for corporate income tax and VAT. The branch will be subject to the same tax rates and filing requirements as a local Bulgarian company. Careful accounting and bookkeeping practices are essential to ensure timely tax payments and compliance with Bulgarian regulations.
Separate Accounting and Reporting
The branch office must maintain separate accounting records and financial statements from the parent company. This includes tracking all income, expenses, assets, and liabilities associated with the branch's operations in Bulgaria. Regular reporting to the parent company is necessary for consolidated financial reporting.
Audit Requirements
Branches of foreign companies in Bulgaria are required to undergo an annual audit by a certified public accountant. The audit report must be submitted to the Bulgarian authorities along with the branch's annual financial statements. Maintaining accurate and up-to-date accounting records is crucial to facilitate a smooth audit process.
In Bulgaria, all companies must register for tax purposes with the National Revenue Agency (NRA) upon incorporation. They are required to obtain a VAT registration if their annual turnover exceeds BGN 100,000 or if involved in specific taxable activities. Additionally, companies must register for corporate income tax (CIT) and payroll taxes if employing staff locally.
The key points on VAT compliance for businesses in Bulgaria are:
When operating a business in Bulgaria, one of the key requirements is registering as an employer if you plan to hire and payroll staff. This step ensures full compliance with Bulgarian labor laws, including tax, social security, and other employment-related regulations.
Our entity management services in Bulgaria are designed to simplify the employer registration process for businesses. We assist with everything from obtaining the necessary registration numbers to ensuring compliance with payroll obligations. With our expert team handling these critical tasks, you can focus on growing your business, confident that your legal and regulatory obligations are fully managed.
Corporate Income Tax (CIT) in Bulgaria is set at a flat rate of 10%, making it one of the lowest in the European Union. All resident companies in Bulgaria are subject to CIT on their worldwide income, which includes profits generated from domestic and international operations. A company is considered a resident if it is incorporated in Bulgaria or has its place of effective management within the country. Resident companies are required to file annual tax returns and pay their CIT by March 31st of the following year. Advance payments are typically made on a quarterly basis, based on the previous year’s taxable profits, to ensure a steady flow of contributions to the tax authorities.
In addition to CIT, resident companies in Bulgaria must comply with withholding tax regulations. Dividends distributed to non-resident shareholders are subject to a 5% withholding tax, unless a lower rate is applicable under an existing double tax treaty. Similarly, certain payments to non-resident entities, such as interest, royalties, and technical services fees, may be subject to withholding tax rates of 5% or 10%, depending on the type of income and applicable treaties. It is essential for businesses to understand these obligations to avoid penalties and ensure tax efficiency in cross-border transactions.
Bulgaria also requires companies to maintain detailed transfer pricing documentation if they engage in transactions with related parties. This documentation must demonstrate that intercompany transactions comply with the arm’s length principle, reflecting fair market conditions. Failure to meet transfer pricing requirements or prove the accuracy of intercompany prices could result in adjustments and additional tax liabilities. Overall, compliance with corporate tax obligations, including CIT, withholding taxes, and transfer pricing rules, is crucial for resident companies in Bulgaria to maintain good standing with tax authorities and optimize their tax position.
Resident companies in Bulgaria are subject to corporate income tax (CIT) on their worldwide income. The standard corporate income tax rate is 10%, which is among the lowest in the European Union. Companies must file annual corporate income tax returns by March 31st of the following year and make advance payments throughout the year based on the previous year’s taxable income. There are no reduced rates specifically for small and medium-sized enterprises (SMEs); however, SMEs can benefit from various deductions and allowances designed to promote business growth.
Non-resident companies are liable for corporate income tax only on their Bulgarian-source income, such as profits attributable to a permanent establishment in Bulgaria. These companies must also file corporate income tax returns and pay taxes on their taxable income generated within the country. Bulgarian tax regulations ensure that non-resident companies are treated fairly and consistently with respect to their local economic activities.
Financial Statements Requirements
Almost every Bulgarian corporate entity is required to prepare financial statements in accordance with the Bulgarian Accounting Act. These statements play a critical role in corporate governance and the Bulgarian legal system, serving as the basis for tax assessment. While financial statements provide essential information for taxation, the tax laws themselves follow an independent set of rules.
Content of Financial Statements
Depending on the company’s size and applicable publication requirements, the financial statements must generally include at least:
Bulgaria's consolidation standards play a crucial role in the management of corporate entities, ensuring businesses comply with local financial and regulatory requirements. These standards are designed to maintain transparency and accuracy in financial reporting for companies operating within the country.
Our entity management services in Bulgaria are structured to assist businesses with meeting these consolidation requirements. We provide tailored support for financial reporting, group consolidation, and regulatory compliance, ensuring all company obligations are fulfilled efficiently. By focusing on Bulgaria’s specific legal framework, we ensure that businesses can operate seamlessly and with full compliance, allowing them to concentrate on growth and success.
Only medium and large companies, as well as companies that apply IFRS, are legally required to have their annual report audited by an independent, qualified, and registered Bulgarian auditor. The auditor’s report must confirm whether the financial statements are prepared in accordance with the accounting principles generally accepted in Bulgaria and accurately represent the company’s financial position and results for the year.
In Bulgaria, publication requirements play a vital role in ensuring compliance for businesses operating within the region. As part of our entity management services, we understand the importance of adhering to local regulations regarding the publication of company information.
Businesses in Bulgaria are required to submit certain documents to the Commercial Register and the Bulgarian Official Gazette, ensuring transparency and legal compliance. These documents typically include the company’s articles of association, annual financial statements, and any changes in corporate structure. Meeting these publication obligations is essential for maintaining good standing with regulatory authorities and fostering trust with clients and stakeholders.
Our customer services are designed to assist businesses in Bulgaria with all aspects of publication requirements. We provide comprehensive support, helping companies prepare and submit the necessary documents accurately and on time. Our dedicated team ensures that businesses can focus on their core operations while we handle the intricacies of compliance in the Bulgarian market.
Businesses in Bulgaria, including non-resident companies, must register for corporate income tax and VAT once they exceed the annual turnover threshold of 100,000 BGN (around 51,100 EUR).
Registered businesses are required to file annual tax returns by April 30th of the following year. There is a 5% tax reduction for filing electronically by March 31st.
Companies must maintain separate accounting records and financial statements for their Bulgarian operations, which are subject to an annual audit by a certified public accountant.
The audited financial statements must be submitted to the Bulgarian authorities along with the annual tax return.
Penalties for non-compliance with the annual accounts filing requirements can range from 500 BGN to 20,000 BGN, depending on the violation.
There are also specific reporting requirements for Bulgarian tax residents regarding foreign income, assets, and loans.
Overall, maintaining proper accounting and timely filing of annual accounts is crucial for businesses operating in Bulgaria, both for resident and non-resident companies. Seeking the assistance of local tax and accounting experts is advisable to ensure full compliance with the regulations.
Online bookkeeping services have become essential for businesses in Bulgaria looking to streamline their financial operations. These services offer a comprehensive range of features tailored to meet the specific needs of both startups and larger enterprises. By leveraging technology and professional expertise, online bookkeeping providers deliver accurate financial reports and efficiently manage financial data, helping businesses maintain compliance and make informed decisions.
Our new branch in Bulgaria specializes in providing top-notch online bookkeeping services tailored for businesses operating in this dynamic market. With a deep understanding of local regulations and financial practices, we ensure that your bookkeeping is accurate, efficient, and compliant with Bulgarian standards.
Our team of experienced professionals leverages advanced technology to deliver streamlined bookkeeping solutions, enabling businesses to focus on growth and strategic initiatives. From transaction recording to financial reporting, we offer comprehensive services designed to meet the unique needs of our clients in Bulgaria.
By choosing our online bookkeeping services, businesses can benefit from real-time financial insights and expert guidance, ensuring they remain informed and proactive in their financial management. We are committed to providing exceptional customer service and fostering long-term partnerships with businesses in Bulgaria.
Virtual bookkeeping services pricing in Bulgaria can vary significantly depending on the pricing model chosen by the business. Understanding these models is essential for companies to make informed decisions regarding their financial management. Common pricing structures include:
Hourly Rates
This traditional model charges clients for the time spent on their bookkeeping tasks. It's often suitable for businesses that require occasional bookkeeping assistance, allowing for flexibility in managing costs.
Monthly Subscription Fees
This model offers clients predictable monthly expenses for their bookkeeping needs, providing a consistent budget for financial management. Businesses can plan their finances more effectively with this approach.
Project-Based Pricing
Under this structure, clients are charged based on specific bookkeeping tasks or projects, allowing for flexibility depending on the nature and complexity of the work. This is ideal for companies that may have fluctuating bookkeeping needs.
Value-Based Pricing
This approach focuses on the perceived value of the services provided rather than the time or resources expended. It is designed to reflect the benefits and outcomes that clients can expect from the bookkeeping services, ensuring they receive value for their investment.
Factors Influencing Pricing
Several factors can influence pricing in Bulgaria, including the scope of services, the geographic location of the service provider, and the level of customization required for the client's specific needs.
Businesses should also be aware of potential hidden costs, such as additional fees for specific services or changes in service scope. It's advisable to seek out providers that offer scalability in their pricing plans, allowing for adjustments as the business grows or its needs change.
Compliance Expertise
Online bookkeeping providers in Bulgaria employ certified accountants who are well-versed in the country's tax laws and reporting requirements. They ensure your books are kept in order and all necessary filings are submitted on time, minimizing the risk of penalties.
Real-Time Financial Visibility
Many online bookkeeping platforms offer web-based dashboards that provide you with real-time visibility into your financial data, such as income, expenses, and cash flow. This allows you to make informed business decisions.
Automated Accounting Processes
Online bookkeeping services typically automate various accounting tasks, such as invoicing, expense tracking, and bank reconciliations. This streamlines your financial management and frees up your time to focus on core business activities.
Scalability and Flexibility
As your business grows, online bookkeeping services can easily scale to accommodate your evolving needs, without the hassle of hiring additional in-house accounting staff. You can also easily adjust your service plan as your requirements change.
Secure Data Management
Reputable online bookkeeping providers in Bulgaria utilize robust data security measures, such as encryption and regular backups, to ensure the safety and integrity of your financial information.
Multilingual Support
Many online bookkeeping services in Bulgaria offer support in multiple languages, including English, making it easier for non-Bulgarian businesses to navigate the accounting landscape.
Affordable Pricing
Outsourcing your bookkeeping to an online service can be more cost-effective than hiring an in-house accountant, especially for small to medium-sized businesses.
Industry-specific bookkeepers in Bulgaria bring a wealth of knowledge that goes beyond fundamental accounting principles. They have an in-depth understanding of sector-specific regulations, tax implications, and financial best practices, enabling them to:
Protect organizations' financial policies
They ensure that the financial operations align with the unique requirements of the industry, safeguarding the organization against potential risks.
Ensure compliance with industry-specific Bulgarian guidelines
Their expertise allows them to navigate the complexities of local regulations, ensuring that businesses adhere to all necessary compliance measures.
Quickly identify and rectify errors
With their keen eye for detail, they can swiftly spot discrepancies in financial records and implement corrective measures, minimizing potential financial pitfalls.
Maintain a strong awareness of the commercial landscape
Their continuous monitoring of market trends and changes in legislation helps businesses stay informed and agile in a competitive environment.
Their expertise allows them to work effectively with a variety of stakeholders, from clients to senior management, making them highly capable of managing complex relationships within the Bulgarian business ecosystem.
Industry-specific bookkeepers in Bulgaria provide tailored financial solutions that address the unique challenges and requirements of various sectors. Their specialized knowledge not only enhances compliance but also promotes operational efficiency, helping businesses thrive in a competitive landscape. Here’s how they deliver value:
Sector-Specific Expertise
These bookkeepers possess in-depth knowledge of the regulations and standards that apply to specific industries, such as manufacturing, retail, or services. This expertise enables them to navigate complex compliance landscapes effectively.
Customized Financial Strategies
They develop financial strategies tailored to the specific needs of each industry. This could include budgeting, forecasting, and cash flow management, ensuring that businesses have the financial insights needed for informed decision-making.
Proactive Risk Management
By understanding the unique risks associated with different sectors, industry-specific bookkeepers can implement measures to mitigate potential financial issues. Their proactive approach helps businesses avoid pitfalls and capitalize on opportunities.
Efficient Tax Compliance
These professionals stay updated on industry-specific tax regulations, ensuring that businesses meet all compliance requirements while optimizing their tax positions. This not only reduces the risk of penalties but also maximizes potential tax savings.
Streamlined Financial Reporting
They provide comprehensive reporting tailored to the needs of the industry, helping businesses monitor their financial performance against relevant benchmarks. This allows for timely adjustments and strategic planning.
By leveraging the specialized skills of industry-specific bookkeepers, Bulgarian businesses can enhance their financial management, drive growth, and achieve long-term success. Their insights and support empower companies to focus on their core operations while ensuring robust financial health.
Virtual bookkeeping assistants have become an essential asset for businesses in Bulgaria looking to streamline their financial management processes. These skilled professionals offer remote support, efficiently managing financial records, transactions, and reporting. By utilizing advanced accounting software and tools, virtual bookkeeping assistants in Bulgaria handle various tasks, including data entry, reconciliations, payroll processing, and expense tracking with precision.
Their expertise helps businesses maintain accurate financial records while saving time and resources, making them a valuable solution for both small enterprises and larger companies in the Bulgarian market. By leveraging virtual bookkeeping services, businesses can focus on their core operations while ensuring their financial management is handled efficiently and accurately.
Virtual bookkeeping assistants in Bulgaria offer a wealth of knowledge and expertise in financial management. They possess a strong understanding of Bulgarian accounting principles and are highly skilled in using various cloud-based accounting platforms. Their expertise covers a wide range of tasks, including managing balance sheets, preparing income statements, optimizing financial resources, and generating customized reports. These professionals are capable of working with diverse stakeholders, from clients to senior management, making them well-equipped to handle the complex relationships within the business environment.
Many virtual bookkeeping assistants in Bulgaria have extensive industry experience, with some professionals having worked for over a decade. They undergo regular training to stay updated on the latest Bulgarian accounting standards, tax regulations, and reporting requirements. This ensures that businesses receive accurate, compliant, and up-to-date financial services tailored to the Bulgarian market.
By leveraging the skills of virtual bookkeeping assistants, businesses in Bulgaria can streamline their financial processes, enhance compliance, and gain valuable insights into their financial health. This allows companies to focus on their core operations while benefiting from expert support in managing their finances effectively.
Pricing for Virtual Bookkeeping in Bulgaria
Subscription-based packages range from around €108 to €220 per month, depending on factors like the number of primary accounting documents processed and the type of business activities.
For one-time accounting services, fixed prices start from around €77 per month.
Pricing is determined by the number of primary accounting documents (invoices, receipts, etc.), VAT registration status, and other business characteristics.
Key Features of Virtual Bookkeeping Services in Bulgaria
Compliance Expertise: Virtual bookkeeping providers employ certified accountants who are well-versed in Bulgarian tax laws and reporting requirements, ensuring your books are kept in order and all necessary filings are submitted on time.
Real-Time Financial Visibility: Web-based dashboards provide you with real-time visibility into your financial data, such as income, expenses, and cash flow, allowing you to make informed business decisions.
Automated Accounting Processes: Virtual bookkeeping services automate various accounting tasks, such as invoicing, expense tracking, and bank reconciliations, streamlining your financial management.
Scalability and Flexibility: As your business grows, virtual bookkeeping services can easily scale to accommodate your evolving needs, without the hassle of hiring additional in-house accounting staff.
Secure Data Management: Reputable virtual bookkeeping providers utilize robust data security measures, such as encryption and regular backups, to ensure the safety and integrity of your financial information.
Multilingual Support: Many virtual bookkeeping services in Bulgaria offer support in multiple languages, including English, making it easier for non-Bulgarian businesses to navigate the accounting landscape.
Cost-Effectiveness: Outsourcing your bookkeeping to a virtual service can be more affordable than hiring an in-house accountant, especially for small to medium-sized businesses.
By leveraging virtual bookkeeping services, businesses in Bulgaria can benefit from expert-level accounting support, real-time financial visibility, and streamlined operations, all while maintaining compliance and data security.
Key Considerations for Businesses in Bulgaria
When establishing or expanding your business operations in Bulgaria, it's crucial to define your bookkeeping requirements to ensure compliance, financial visibility, and efficient management of your finances. Here are the key areas to consider:
Compliance with Bulgarian Accounting Regulations
Financial Visibility and Reporting
Efficient Bookkeeping Practices
Data Security and Backup
Adaptability to Business Growth
By carefully defining and addressing these key bookkeeping requirements, businesses in Bulgaria can maintain financial compliance, gain valuable insights, and optimize their financial management processes, ultimately supporting the growth and success of their operations.
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