A: As a start-up, it is important that you avail the services of a CPA, in order that you will be enlightened with all the vital financial issues that you will encounter in each phase of your business cycle. However finding the appropriate CPA is one of the most delicate issues faced by entrepreneurs. In hiring a CPA for your business, it is advisable that you look for a CPA that is well adept at informing you on the issues at hand, assists you in formulating business strategies and finds ways to take advantage of your firm’s available resources, flexible with fees and blends in with your business objectives, as well as appetite for risks.
A: The object of taxation under the Bulgarian Personal Income Tax Act shall be the income of local and foreign natural persons. Regardless of the citizenship thereof, a local natural person shall be a person:-
- whose permanent place of residence is in Bulgaria, or
- who spends inside the territory of Bulgaria more than 183 days in each period of 12 consecutive months, or
- who has his center of vital interests in Bulgaria. Vital interests in Bulgaria means: “the interests of the person are closely connected with the country. In the course of determining those interests, the following may be taken into consideration: the family, the property, the place in which the person carries out his/her employment, professional or business activity, and the place from which he/she manages his/her property”.
Local natural persons shall be bearers of the obligation to pay taxes on income originating from sources located either within the Republic of Bulgaria or abroad. Therefore taking into consideration that you are living in Bulgaria, your status for tax purposes would be a local natural person and you would bear obligation to pay taxes on income originating from sources located abroad, namely from the UK. For that purpose at the end of 2011 you need to request from your UK employer an Annual Income certificate /for the period 1.1.2011 – 31.12.2011/ and in a term until 30th of April 2012 to submit your Annual Tax Return to the Bulgarian National Revenue Agency as well as to pay the Personal Income Tax due to the Bulgarian budget.
A: In compliance with the Bulgarian CIT act taxable on the territory of Bulgaria shall be:
- the local legal entities including the general partnerships;
- the foreign legal entities which carry out business activities within the Republic of Bulgaria through a location of business activity;
- the foreign legal entities which carry out administration of property in such a location of business activity;
- the foreign legal entities which receive income from a source within the Republic of Bulgaria.
A: Any activity which is not forbidden by the law could be carried out in Bulgaria. For some activities such as banks, tourism, retail and wholesale of electricity, staff leasing and etc. additional licensing will be needed, after the company is incorporated.
A:The minimum share capital for establishing a LLC is BGN 2 /EUR 1/.