Declaring an asset sold by a non-trading company

In the situation of a sale of a company asset (e.g. a car) in a reporting period during which no commercial activity has been carried out in Bulgaria by a company, the question arises whether this company can be defined as a person that has not carried out activity within the meaning of the Law on accounting and whether it should declare the amount of the sale of the asset.

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Insurance of self-insured persons

The obligation for insurance of self-insured persons in Bulgaria arises from the day of commencement or resumption of employment activity and continue until its interruption or termination. Upon commencement, interruption, resumption or termination of any employment activity, the self-insured person submits a declaration according to a sample.

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Tax treatment under the Corporate Income Tax Act in case of transfer of fixed assets to a place of business in Bulgaria

Foreign legal entities that carry out economic activity in Bulgaria through a place of economic activity, dispose of property in such a place of economic activity or receive income from a source in Bulgaria are taxable persons under the Corporate Income Tax Act and should form a tax financial result.

From 01.01.2020 in Bulgaria the rules for tax regulation are applied in case of transfers between a part of one enterprise located in the country and another part of the same enterprise located outside the country, which rules have been introduced in connection with the application of Directive (EU) 2016/1164 of the Council of 12 July 2016 laying down rules against tax avoidance practices which directly affect the functioning of the internal market (Directive 2016/1164).

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Change in the applications for granting extended and permanent residence permits in Bulgaria

A new application form has been introduced for the following types of permits for extended residence in Bulgaria:
– a permit for extended residence and work type “Single permit for residence and work”;
– an extended residence permit for employment as a seasonal worker;
– a permit for extended residence and work type “EU Blue Card” for the purposes of highly qualified employment;
– an extended residence and work permit type “EU Blue Card” for the purposes of highly skilled employment of an EU Blue Card holder, issued by another Member State of the European Union, when the person has been residing in the territory of that Member State for 18 months and of the members of his family;
– a permission for a person transferred during an intra-corporate transfer;
– a mobility permit for an intra-corporate transfer.

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Important changes regarding the acquisition of Bulgarian citizenship

Important changes regarding the acquisition of Bulgarian citizenship have been adopted in the Bulgarian Citizenship Act. First of all, the amendments to the law optimize the opportunities for acquisition of Bulgarian citizenship by naturalization by foreigners who have received permanent residence in Bulgaria, based on investments made by them, as well as by their spouses. Long-term investments and job creation are encouraged for the purpose of acquisition of Bulgarian citizenship upon shortened periods of residence.

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Change in the grounds for family reunification of a foreigner with a residence permit in Bulgaria

The grounds for reuniting the family of a foreigner with a permitted residence in Bulgaria are legally changed. A foreigner, with a residence permit of not less than one year on the territory of Bulgaria, can submit an application for obtaining the right of temporary residence (prolonged-stay) from a member of his/her family, if any of the following grounds exist in relation to his/her family member:
– if there are grounds for granting him/her permanent residence;
– if he/she is a member of the family of a foreigner who has received a permanent or temporary residence (prolonged-stay) permit, as well as of a foreigner who has received international protection – when the documents certifying family ties and the right to maintenance are recognized or admitted for execution under Bulgarian law;
– if he/she is a member of the family of a foreigner with granted asylum, temporary protection or humanitarian status – when the documents certifying the family ties and the right to maintenance are recognized or admitted for execution under the Bulgarian legislation;
– if he/she is a member of the family of a long-term resident foreigner – he/she may obtain a long-term residence permit for a period of one year with the possibility of renewal, without exceeding the permitted period of residence of the holder;
– if he/she is a member of the family of a holder of a permit for a person transferred during an intra-corporate transfer – he/she may obtain a temporary residence (prolonged-stay) permit for the period of residence of the holder.

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MiFID License in Bulgaria

Bulgaria has proven to be the perfect jurisdiction for incorporating and running FX companies. This is due to its attractive tax regime, their EU Member Status, its implementation of Markets in Financial Instruments Directive (MiFid), and a strong regulatory regime.

According to the Bulgarian legislation, only licensed and registered investment intermediaries can provide FX trading/investing services. This requires direct approval of the Financial Security Commission (FSC) in accordance with Markets in Financial Instruments Act. A few of these requirements are minimal capital investment as well as personal and professional guidelines in regards to the firm’s director.

Every FX brokerage firm licensed by the FSC falls under MiFID, the regulatory organizations for investment services across the 30 European Economic Area member-countries. As such, the ensuing license is valid across the EU, and allows FX brokerage firms to offer investment services, establish representative offices, and create fully-operational branches in any desired location within the European Union.

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Changes in the Bulgarian Commerce Act 2017

Significant changes in Bulgarian Commerce Act were adopted at the end of 2016, valid in the current year. We present below a summary of the most significant changes introduced with the present Act.

Validity form of certain documents is getting stricter

In addition to the current requirements for notary certified signatures on contracts for the transfer of commercial enterprise and contracts for the transfer of shares, a new requirement for additional notary authentication of the content of such contracts is introduced.

The same validity form will be required for the decisions of shareholders of limited liability companies for acceptance and exclusion of shareholders, increase and decrease of company’s capital, shares transfer to a new shareholder, appointment of company manager, acquisition and disposal of real estate and property rights thereto. Continue reading “Changes in the Bulgarian Commerce Act 2017”

Establish a FOREX company in Bulgaria

Global Consult Europe is a consulting agency specialized in international corporate law. We will provide you with all the necessary know-how on how to start your own Forex business. Thanks to our partners we can offer you a full range of services that include:

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5 reasons to trust the professionals for registration of your Bulgarian company

The creation of a business company or even a sole trader in Bulgaria is an activity that is important to be done by the rules, because the appearance of a newly created business depends on it. Many people believe that they can successfully pass the administrative and bureaucratic procedures, with the intention to save the fee that would have paid to the specialist performing registrations of companies. Not long after, the majority of these people find themselves so entangled in red tape that ultimately again recourse to an expert, which is a waste of time and money.

If you want to avoid the bitter experience and start as soon as possible your business activity it is important to select a team to take on the entire burden of the cumbersome procedure. During this time, you can focus to the activity, corresponding to your competence, laying the foundation for a successful and prestigious business.

5 reasons to trust the professional registration of companies

The reasons to trust the professionals are many, but here we will suggest only 5, we believe that their significance is greatest. Most of us don’t soberly judge the situation until we understand from experience how great is the difficulty to fight the bureaucracy not having the necessary competence and experience. Here are the main reasons ordered but not prioritized. Continue reading “5 reasons to trust the professionals for registration of your Bulgarian company”