Attention: it's advisable to seek professional advice, such as from an accountant or business advisor, to ensure you comply with all legal and tax requirements when setting up your sole proprietorship as a contractor in Bulgaria.
In Bulgaria, you are not allowed to operate as individuals to be a contractor. You will need to register a legal entity. This legal entity could be a sole proprietorship, business, organisation or partnership. The most common one for contractors is sole proprietorship.
Setting up a sole proprietorship in Bulgaria involves several steps. Here's a general overview:
Choose a Business Name: Select a name for your sole proprietorship that complies with Bulgarian business naming regulations. The name should be unique and not already in use by another business.
Register the Business: You need to register your sole proprietorship with the Bulgarian Commercial Register. This involves submitting an application form along with necessary documentation to the relevant authorities. The documentation typically includes:
Your personal identification documents (passport or ID card).
Proof of address (e.g., utility bill).
Business address (which can be your residential address).
Declaration of consent for processing personal data.
Depending on your business activities, you might need additional permits or licenses.
Tax Registration: After registering with the Commercial Register, you also need to register for taxation purposes. You'll need to obtain a unique identification number for tax purposes (VAT number, if applicable).
Open a Bank Account: You will need to open a business bank account for your sole proprietorship. This account will be used for business transactions, payments, and to receive income related to your business activities.
Obtain Necessary Permits and Licenses: Depending on the nature of your business activities, you may need to obtain specific permits or licenses from relevant authorities. These could include health permits, professional licenses, or permits related to specific industries.
Fulfill Social Security Obligations: As a sole proprietor, you're responsible for your own social security contributions. Make sure to register with the National Revenue Agency (NRA) and fulfill your obligations for social security contributions.
Keep Proper Accounting Records: It's important to maintain accurate accounting records for your sole proprietorship. This includes keeping track of income, expenses, invoices, and receipts.
Comply with Legal Requirements: Ensure that you comply with all legal requirements and regulations applicable to your business activities. This includes tax filings, annual reports, and any other obligations imposed by Bulgarian law.
It's recommended to consult with a legal or financial advisor familiar with Bulgarian business regulations to ensure compliance with all legal requirements and to facilitate the process of setting up your sole proprietorship.