A company without an accountant
A company without an accountant
Question:
Hello!
I am starting my own business in the creative sector and am currently in the process of registering a company (EOOD). I plan to engage in handmade clay figurines, as well as embroidery in my free time. I have a few questions:
1. Is it mandatory to use accounting software? If I purchase a cash register connected to the NRA system, is it sufficient from an accounting point of view or are there additional requirements, such as hiring an accountant?
2. Is there a change in insurance in case I am unemployed? As far as I am aware, I have to pay 270 BGN. monthly insurance premiums, even when I am insured by another company I work for.
3. Insurance becomes mandatory at the moment I submit a declaration of activity to the NRA or at the moment of registering an EOOD?
4. Is there a deadline within which I have to submit this document of activity after registering the company? Can it remain registered and if so, are there any additional documents for this?
Thanks in advance!
Answer:
Hello,
We will answer your questions in order.
1. What you have as an obligation is to submit certain declarations (depending on your activity, insurance, taxes, VAT registration, etc.) on a monthly, quarterly and annual basis, as well as annual financial statements to the NRA, NSI and the Commercial Register within a certain period of time. Accounting software would facilitate the preparation and completion of these declarations, and the accountant would take on these responsibilities for you, taking care of their correct completion and timely submission, but there is no legal obstacle to you performing these activities yourself. On the NRA website you can also find free software products for preparing all basic declarations, and you can also get an electronic signature and submit everything online, through the NRA electronic portal. The cash register is mandatory if you are going to accept cash payments, but its connection with the NRA has only a control function. That is, the declaration of income is not made through this connection with the NRA.
2. In order not to owe social security contributions as a manager and owner of a company, you must either already be insured at the maximum social security income or be self-insured on another basis (as an owner/manager of another company or as a person exercising a freelance profession). Otherwise, you will owe monthly social security contributions between 260 - 290 BGN, depending on whether you will be insured for "General illness and maternity" or not.
3. Insurance becomes mandatory from the moment the declaration for commencement of activity and insurance is submitted. In turn, this must happen when you start a real activity and generate the first income or the first expense related to the company's activity.
4. The declaration for commencement of insurance and activity is submitted within 7 days after the actual commencement of activity. Until then, the company can sit for an indefinite period without any activity.
We hope we have been helpful to you!
Greetings!
