“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.
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:
Autonomy in business operations
Freelancers retain full control over their business decisions, from choosing clientele to determining scope of services and pricing strategies. This autonomy requires strong entrepreneurial skills and effective business management practices.
Income management
Unlike traditional employment, freelance earnings are variable and directly related to the quantity and nature of projects undertaken. This requires sound financial planning skills and budgeting to manage irregular cash flows and ensure financial stability.
Compliance with tax laws
Freelancers are responsible for their own tax obligations and compliance with laws related to their business activities. This includes accurate revenue reporting, tax filing and complying with relevant regulations pertaining to their service offerings.
Diverse clients and projects
Freelancers typically engage with multiple clients, often in different industries. This diversification can mitigate financial risk, but also requires adaptability and a broad skill set.
Contracting and negotiation skills
Effective contract negotiation and clear terms of engagement are critical to successful freelance operations by ensuring clarity in deliverables, terms and payment conditions.
CLIENTS WHO TRUSTED OUR ACCOUNTING FIRM:
Marcello Marchese
Attention Age LTD
Клиент съм на MKAФИНАНС вече повече от година и не мога да си представя по-добро обслужване. След като съм се доверявал на италиански и испански счетоводители, които работят по-бавно, МКАФИНАНС ме изненадаха с това колко бързо и професионално отговарят. С тях сте в добри ръце, така че не се колебайте и им се обадете.
Георги Паунов
Уникални Фото Подаръци ЕООД
Личното отношение, безплатните екстра услуги, откликването при въпроси в извънработно време и идеите за съвременни софтуерни решения са само част от нещата, за които сме благодарни на Счетоводна фирма “МКА Финанс”. В тяхно лице намерихме не сухи счетоводители, а истински приятели, разбиращи проблемите на бизнеса.
Елина Минкова
Бонония Травел ЕООД
Компанията ни ползва счетоводни услуги от “МКА Финанс” от 2017 г. Съотношението между цена и качество е много добро. Най-силното им предимство е специалното отношение и внимание, което отделят на всеки клиент. Спокойни сме да се консултираме с “МКА Финанс” за всеки по-специфичен случай, защото винаги получаваме бързо и адекватно решение.
Tim Brady
Eightcap
За нас Счетоводна къща “МКА Финанс” е надежден и изключително професионален партньор. Мирослав и екипът му ни осигуриха ясен и директен план за действие от самото начало. Оттогава MKA ни предоставят правилните съвети във всяка ситуация, а така ни осигуряват спокойствие да се концентрираме върху бизнеса си.
Ian Wooller
Scraptech International Ltd
Желанието и способността на MKAФИНАНС да намерят решение на всички мои въпроси във и извън работното време са най-силното им предимство. Вярвам, че МКА биха били от голяма помощ на всеки чужденец, който създава бизнес в България, на всяка крачка от пътя му – дори в уреждането на личните му документи.
Милен Тонев
Профешънъл Стрийт Кафе ЕООД
Счетоводна кантора “MKA Finance” винаги са високо компетентни, като това е от голямо значение за нас, за да бъдем винаги изрядни и в крак с новите закони на нашата държава. Работим с тяхната счетоводна фирма и продължаваме да го правим, защото те са млад, енергичен екип, който винаги е на линия с изключително възпитано и интелигентно отношение.
R.V.
Zulu Consulting LTD
Екипът на Счетоводна кантора “MKA Финанс” е наистина надежден, защото е винаги до нас, когато се нуждаем от бързо и професионално обслужване или консултации. Фактът, че МКА имат и адвокати в офиса, ни е много полезен. Те предоставят пълните услуги, от които се нуждаем – отлични ведомост за заплати, счетоводство и правна подкрепа.
GET YOUR REGISTRATION OFFER ON FREELANCE RIGHT NOW!
APPLYRegistration 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:
Determination of legal status upon registration of a liberal profession
Initially, individuals must establish their appropriate legal status as freelancers. This includes deciding whether to register as a sole trader or under another legal entity structure that is consistent with their business activities.
Registration in the Commercial Register
This is a compulsory step for those who choose to register as a sole trader or a legal entity. The process involves submitting the necessary documentation, including personal identification and proof of address.
Tax registration when registering a free profession
Freelancers must also register with the NRA. This includes obtaining a Bulgarian personal identification number (PIN) for tax purposes and registration for value added tax (VAT), if it is applicable, based on the threshold set by Bulgarian law.
Social security and health insurance contributions
As self-employed, freelancers in Bulgaria are responsible for their own social security and health insurance contributions. They have to register with the National Social Security Institute and make regular contributions according to their income.
Accounting and financial reporting
Freelancers are required to maintain accurate financial records, including income and expenses. Depending on their income and the nature of their work, they may need to adhere to specific accounting standards and submit periodic financial statements to the relevant authorities.
Compliance with sector-specific regulations
Depending on the nature of their services, freelancers may need to comply with additional sector-specific regulations and obtain the necessary licences or permits.
Continuous legal and tax compliance
Freelance workers must be informed of any changes in Bulgarian legislation that may affect their business operations, ensuring continuous compliance with tax returns, social security contributions and legal obligations.
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.
List of documentation required for registration as a freelancer in Bulgaria:
- Identity documents:
- Proof of address:
- Application for registration:
- Professional qualifications and certificates:
- Tax registration documents:
- Bank account details:
- Declaration of planned business activities:
- Evidence of compliance with sector specific regulations:
- Social Security Forms:
- Signed declaration of conformity:
This includes a valid ID card or passport. For non-Bulgarians, an additional identification proving legal residence in Bulgaria.
A document confirming the person's address in Bulgaria, such as a bill for utility bill or rental agreement.
Completed and signed application for registration as a free profession.
Where applicable, freelancers must provide evidence of their professional qualifications, such as diplomas, certificates or licences, appropriate to their field of work.
These include NRA registration forms.
Providing bank account information for business-related financial transactions on a free practice.
A detailed statement describing the nature of the freelance services provided, including the scope of work and expected business sectors.
For certain occupations, evidence of compliance with specific industry regulations, including required licenses or permits.
Registration documents with the National Social Insurance Institution indicating the freelancer's intention to make his/her own contributions for social and health insurance.
A declaration confirming the freelancer's commitment to comply with Bulgarian laws and regulations, governing self-employment and business operations.
This comprehensive documentation helps establish the legal and professional credibility of freelancer, ensuring compliance with Bulgarian business regulations and facilitating transparent and responsible operational framework for their freelance activities.
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.
Contact usCapital 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.
