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Freelance registration

“Freelance registration” is a professional service that is growing in popularity. MCA Finance in on hand to guide you seamlessly through the intricacies of the freelance registration process.

With Bulgaria’s growing economy and favorable business climate, navigating the freelance registration process can be both an exciting and intimidating endeavor.

We provide customized billing services – rulings and guidance on tax implications and expert advice on the subject. Whether you’re an experienced freelancer or just starting out, our expertise is your stepping stone to a thriving freelance career in Bulgaria.


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A team of experts with many years of professional experience in the field of accounting.

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Transparent conditions and correct behaviour in relation to all ethical standards.
Timely submission of information with secure and transparent conditions.


Full confidentiality of all financial information.
Electronic based accounting with own server and cloud storage.

What is freelancing?

Freelancing is a form of self-employment in which a person works as an independent contractor, offering specific services to a diverse range of clients.

This operating model is characterised by contractual commitments rather than fixed employment relationships. Freelancers are responsible for managing their own business endeavors, including client acquisition, project execution, invoicing, and cash flow management.

Key aspects of freelance registration include:




Registration procedure of a free profession

In Bulgaria, the process of registering a freelancer working as an independent contractor is described by specific legal and financial protocols.

This process is integral to ensuring compliance with the country's regulatory framework, which governing self-employment activities.

In the following lines we will give a detailed description of the procedure for freelancers registration in Bulgaria, designed to help potential freelancers navigate the administrative environment:

The freelance registration procedure in Bulgaria is a multi-step process that requires careful attention to legal and financial details.

Freelancers are required to proactively engage with various government bodies to ensure full compliance with national regulations governing self-employment. This comprehensive approach ensures that freelancers operate within a legal framework, promoting a transparent and efficient business environment.

Freelance registration documents

The process of registration as a freelancer in Bulgaria requires the submission of a series of documents against the legal and regulatory requirements set by the Bulgarian authorities.

These documents serve to verify the identity, legal status and professional qualifications of the person who wants to work as a self-employed freelancer.

Registration of a sole proprietorship or LTD

Comparing freelance registration and LLC registration highlights several key differences and considerations:

Legal and financial liability

Freelancer: As a freelancer you are personally liable for your business debts and liabilities. This means that personal assets may be at risk in the event of legal disputes or debts.

LTD: Ltd provides limited liability protection. This means that your personal assets are generally protected as liability is limited to the amount invested in the company.

Taxation and Financial Management | Freelance or Ltd. registration

Freelancer: There are simpler filing requirements, but they may have higher personal income tax rates. Managing finances can be easy as there is no legal distinction between personal and business income.

LTD: subject to corporation tax on its profits, which can offer tax advantages depending on income and expenditure. Requires more complex accounting and financial reporting, including annual financial statements.

Administrative and compliance requirements

Freelancer: There are simpler submission requirements tax returns, but may have higher personal income tax rates. The management of finances can be easy as there is no legal distinction between personal and business income.

LTD: is subject to corporation tax on its profits, which may offer tax advantages depending on income and expenses. Requires more complex accounting and financial reporting, including annual financial statements.

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Capital requirements for the registration of a sole proprietorship or LTD

Freelancer: No capital is needed to start working as a freelancer.

LTD: Requires minimal capital investment (although it is relatively low in Bulgaria).

Professional image and credibility

Freelancer: Can be perceived as less formal or established by a company, which can affect customer perceptions and business opportunities.

LTD: Offers a more professional image that can be beneficial when working with larger clients or corporations.

Registration of a sole proprietorship or LTD

1. Personal income tax

Tax rate: Bulgaria has a flat personal income tax rate that also applies to freelancers.

Taxable income: this includes all income earned from freelance activities, after deduction of allowable expenses.

2. Insurance and health insurance contributions

Compulsory contributions: freelancers are obliged to pay social security and health insurance contributions based on their income.

Contribution rates: rates are set annually and are a percentage of the freelancer’s income, subject to minimum and maximum thresholds.

Cover: These contributions give freelancers access to state benefits, including pension, sickness and unemployment benefits.

3. Value added tax (VAT)

VAT registration: freelancers must register for VAT if their turnover exceeds a specific threshold set by Bulgarian law.

VAT rate: the standard VAT rate in Bulgaria is 20%, with a reduced rate for certain goods and services.

Reporting VAT: Registered freelancers must file VAT returns and make payments regularly (usually monthly or quarterly).

4. Tax withheld (if applicable)

If a Bulgarian freelancer provides services to clients outside Bulgaria, there may be withholding tax depending on the tax treaties and laws of the respective countries.

Why choose MCA Finance for freelance registration

MCA Financial is a professional accounting firm with freelance registration services.

MKA FINANCE’s approach to personalised service means that each client receives attention tailored to their specific needs, which is particularly useful for freelancers who need personalised financial advice. Streamlining the registration process in a more efficient way by implementing proactive tax planning to help freelancers.

We provide ongoing and timely assistance with financial management, tax returns and compliance, allowing freelancers to focus on their professional work without the burden of financial complications.

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