46. Q: What is the purpose of the offshore company?
A: There are two main reasons for you to decide to register an offshore company. The first is tax avoidance, minimization or deferral. The second is asset protection and confidentiality. Both reasons are quite independent. Some offshore companies actually do not pursue any tax-reduction purposes at all, but mostly serve as a protective shell for some part of the assets of their owner. More often, though, both reasons overlap and complement each other.
47. Q: Are offshore companies required to keep financial records and books?
A: Many offshore jurisdictions do not require any financial records to be officially filed. Quite simply, offshore companies are free to keep their books as they wish. However, since recently, some of the more advanced offshore financial centres have gradually realized that a mandatory requirement to maintain some formal financial records in an offshore company would actually be in the best interests of the beneficial owners of the companies, as this would provide the company owners with extra peace of mind. This aspect becomes specifically important when an offshore corporation is owned by several individuals, thus requiring a more elaborate system of management and controls.
48. Q: Can you provide me with references about your accounting & payroll services?
A: Yes, we have got number of references from our satisfied clients, whom we provide with our accounting, payroll, taxation, incorporation etc services. We are always able and happy to send those on request.
49. Q: Do you have a professional liability insurance?
A: Yes, Sb Accounting & Consulting has concluded an insurance agreement on international insurance of liability for damage in case of a damage arisen as a consequence of provision of the services.
50. Q: What are the registrations related to the payroll and personnel that need to be done prior to start conducting business?
A: (1) Registration of each individual labour agreement with the National Revenues Agency
Employers in Bulgaria are obliged to inform the Bulgarian National Revenues Agency about the execution, amendment and termination of labour agreements by filing a standard notification form within 3 (three) calendar days of the date of execution or amendment of the respective labour agreement and within 7 (seven) calendar days as of the date of its termination. Registration is performed by filing standard notification forms. Failure to report in due time is associated with high monetary sanctions – from BGN 1,500 (appr. EUR 750) to BGN 15,000 (appr. EUR 7,500) for each particular event of default.
(2) Registration as a personal data controller
Pursuant to the Personal Data Protection Act any person, including employers, who is processing personal data, i.e. the personal data of the employees, shall, prior to any event of such processing, notify the Bulgarian Commission for Personal Data Protection by filing an application and sample documents approved by the Commission. In addition, the company should adopt internal rules on data processing.
Failure to comply with the above obligation may incur sanctions from BGN 1,000 (appr. EUR 500) to BGN 10,000 (appr. EUR 5,000).
(3) Registration of the employer with the District Labour Inspectorate
Employers must also, until 30 April of each calendar year, report to the District Labour Inspectorate their compliance with the Bulgarian health and safety regulations by filing a standard form declaration. Such declaration shall specify the location, type and nature of production activity, number of workers, work conditions, risk factors and measures undertaken to ensure prevention of industrial and other accidents. Failure to perform this statutory obligation may be sanctioned between BGN 100 (appr. EUR 50) and BGN 500 (appr. EUR 250).