Accountants Bulgaria: Who is Aidos?

Welcome to the website of Aidos – Accountants Bulgaria. We are a company dealing with the administration part of your business. Our services include: bookkeeping & accounting, payroll, VAT and tax preparation and company registrations.

We choose our website to be in a weblog format. In this way we are aiming to create a continuously refreshing and growing knowledge base. Below here you’ll find posts on topics related with doing business in Bulgaria, changes in the law, introductions of our clients and more, what we think may be of interest for you. By following the links in the right hand menu you can find more information about us, our services, or on specific subjects. When you feel something is missing just let us know and we will add it.

When you cannot find here what you are looking for, don’t hesitate to contact us.

Thanks for visiting us here!

The Aidos team

Aidos Accounting Bulgaria

 

Important accounting dates Bulgaria

A guide to important accounting dates to remember

Accounting is one of the most important pillars of any successful business, therefore, we at Aidos, have decided to help you with a guide to important accounting dates to remember.

We always do our best to provide you with outstanding accounting services, but we would not be able to do so without a little help from your end. To make our work flow smooth and hassle-free, we kindly ask you to check our guidelines below and insert our important accounting dates into your business calendar.

 

Monthly Deadlines in Bulgaria

On a monthly basis, there are two important accounting dates for you to know about, and basically, only one date to remember and place in your business calendar: 5th of the month!

 

Important accounting dates Bulgaria

 

Yearly Deadlines in Bulgaria

The monthly accounting deadlines are the most important ones for you to remember, but for your information and convenience, here is a list of the key accounting deadlines in Bulgaria, on a yearly basis. We, at Aidos, will make sure to inform you and remind you of any yearly accounting due dates.

 

Important accounting dates Bulgaria

 

Don’t forget to check our Blog next month, when we will discuss the most important payroll deadlines for your company.

 

Register a company in Bulgaria

Which form of business organisation to go for?Company formation Bulgaria

Part 1: Small and Medium Business

You want to register a company in Bulgaria, but you don’t know what legal form to choose?

Selecting the right company format is an important issue to consider, prior to setting up your business. A proper choice on the legal form can save you money, time, and a lot of hassle.

To make the right decision, we suggest that you take into consideration not only the size and nature of your business, but also all accompanying legal and accounting aspects.

When it comes to small and medium sized business, usually the dilemma lies in the choice between ET (Sole trader) and OOD / EOOD (Ltd). Therefore, in the lines below we will outline the advantages and disadvantages of both legal forms.

Pros & Cons of ET

ET in Bulgaria stands for a sole proprietorship (sole trader). This is a type of enterprise that is owned and run by one natural person (residing in Bulgaria) and in which there is no legal distinction between the owner and the business entity.

PROS of ET registration:

  • No need for initial founding capital.
  • The state taxes and fees for the registration of ET are lower than those for registration of OOD / EOOD.

For a number of commercial activities, such as restaurants or other catering and entertainment venues, paid parking lots, and some types of services, the sole traders pay a patent tax. The tax amount depends on the location of the premises (in some cases – also the size) and the type of patent activity. You might be wondering what is the benefit of this taxation? The answer is that you will not be subject to personal income tax. For sole traders, the tax equals 15% of the profit. With a significant income (but not more than 50,000 BGN per year) and low operational costs, patent tax can be a great option.

The ET closure procedure is easier and quicker.

CONS of ET registration:

  • In the event of insufficient company capital, the owner of a sole proprietorship remains personally liable for all the business’s debts.
  • In most cases, the levying of a patent tax is less advantageous than the flat tax paid on the profits of OOD / EOOD.
  • If the ET does not hold a patent, you’ll have to pay 15% tax on the realized profit.
  • If you would need to raise some capital for your business, bear in mind the relatively low confidence by banks when granting loans to ETs.

Now that we’ve outlined the pros and cons of Bulgarian ET, let’s look at the OOD/ EOOD characteristics.

 

Pros & Cons of OOD / EOOD

OOD /EOOD stands for Limited liability company/ Single-member liability company and is one of the most appropriate forms of development for small and medium capital.

PROS of OOD / EOOD registration:

  • Very low founding capital – the minimum required capital at registration of OOD / EOOD is 2 BGN (1 EURO)
  • Flexibility with respect to the number of partners and the amount of capital
  • OOD / EOOD is responsible for its obligations to the amount of the capital and not to the partners’ personal assets.
  • Regardless of the activity of OOD / EOOD, you pay a 10% flat tax on profits.

CONS of OOD / EOOD registration:

  • The state registration fees for OOD / EOOD are higher than those for ET registration.
  • OOD / EOOD closing procedures are more complicated and take several months.

In conclusion, we will suggest that prior to registering your business in Bulgaria, you evaluate all the pros and cons of ET and OOD in the light of your individual situation. In any case, it would beneficial to consultant an experienced accountant or lawyer, who will guide in the process.

No matter, which legal form of business you choose, you are going to benefit from the:

  • Lowest setup fees within the EU
  • Lowest required founding capital
  • Lowest Tax on Dividends in the EU
  • Lowest Tax on Corporate & Personal Income
  • Lowest Social security contributions in the EU

Should you consider company registration in Bulgaria, you can rely on a professional advice and top-notch service from Aidos BG. Our experienced experts will help you make the right choice and will support through the whole registration process. If you want to learn more, don’t’ hesitate to contact us.
Don’t forget to check our next article, coming in August, when we will discuss the pros and cons of different legal forms for large businesses in Bulgaria. If you want to be sure, you never miss a news from us, feel free to sign up for our monthly newsletter here.

 

Aidos Policy on GDPR

Aidos Accountants Sofia

On May 25th 2018 The General Data Protection Regulation (GDPR) (EU) 2016/679 will get into force. In this statement we clarify what that means for the Aidos group and for our clients.

As an accounting and payroll company we deal with personal data on a daily basis. For many years we have been handling this data with care, discretion and a high level of security measures.

 

Where do we use personal data?

  • Payroll department for the sake of preparing labor contracts.
  • For initial company registrations, to appoint owner(s) and manager(s) of new companies.

Personal data may include;

  • Full name
  • Date of Birth
  • Place of Birth
  • ID number, ID card/passport number
  • Social number
  • Living address

 

With who do we share personal data?

In compliance with local legislation and regulations we share information on labor contracts with: The National Revenue Agency. Personal data included in company formation documents is shared with the Bulgarian trade register. For opening a company bank-account, personal data can be shared with the bank of choice of the person(s) involved.

 

How do we store and protect personal data?

Our office is divided in four security zones;

  1. Entrance/common parts: locked with security key, double entrance door. Video surveillance.
  2. Operations department: Only accessible for staff. Video surveillance in the main corridor.
  3. The operations rooms: Accessible only for authorized staff, lockable doors, Payroll runs on a dedicated server, with highest level of security measures.
  4. Lockable, metal cupboards in the operations rooms where the actual paper documents containing personal data are stored.

Storage of digital documents containing personal data are only stored on a dedicated secured server. Paper documents are only stored in security zone 4. Both digital and paper documents containing personal data are only accessible for authorized staff within the Aidos Group.

Computer, servers and required software are protected by security keys and passwords.

Email acces of authorized staff is equipped with 2-step authentication.

Personal data will never be be shared to others than authorized staff within the Aidos group without written consent of the person involved.

All staff within the Aidos group has committed to our internal non-disclosure protocol.

All authorized staff within the the Aidos group has passed GDPR training. All staff within the Aidos group has passed GDPR instructions.

We use Transport Layer Security (TLS) to encrypt and secure our email traffic. If your email provider does not support TLS, your email may be unsecured until it arrives at our servers.    

On the premises of Aidos a 24 hour alarm system is in place. Contracted by a professional security company.

 

Third party services.

Third party services include: Google services; Social media platforms; software suppliers; lawyers, translation services, notaries. Third party services have been verified to have their own GDPR policy in place and are in compliance with GDPR. Although we trust the parties we work with we bear no responsibility for their compliance with GDPR.

 

What will change per May 25th 2018?

  • Copies of personal documents; ID-card/passport, will not be accepted. The minimum requested data for preparation of labor contracts and company registration to be presented in written and send to dedicated email addresses of authorized staff. Occasional received copies containing personal data will be destroyed and removed from our systems. A shredder, with class P5 security level is in place.
  • Any person may request at any moment the status of stored personal data. Any person may request at any moment to fully remove personal data from our systems and paper documents to be destroyed. In this case it may occur that we won’t be able to fulfill our services and are forced to terminate underlying agreements.

When anyone has doubts about his or her’s personal data in our company. With pleasure we will explain and clarify when requested. Written requests can be send to: gdpr@aidosbg.com

Our Policy in Bulgarian