Financial instruments trading training
Financial instruments trading training
Question:
Hello!
How can I lawfully carry out consulting activities and training in the field of trading with financial instruments - forex, shares and others in and outside Bulgaria and the EU; Online sale of signals (copy trading), via platforms or personal website, related to financial instruments, preparation and sale of analyses. Can I carry out the activities as a freelancer? Do I have to have a license or am I allowed to sell my personal opinion? I also have a registration to an affiliate program of a financial intermediary (broker in the EU) as an individual. What taxes do I owe as such?
In the event that I register a company, must there be an appointed person - me or another person with a diploma or certificate in the given field? I have a certificate, but I don't know if it could serve the purpose?
Some time ago, a company was opened in my name to serve for a project that, due to unforeseen circumstances, did not materialize. I was abroad for some time and the company was left without any accounting reports, no documents have been submitted to the institutions since the opening until now. A declaration that the company is starting to operate has not been filed either. I have never insured myself through it. No transactions have been made, no buying or selling has been done through it, no services have been performed, no cash register has been registered. In 2015 a letter was received at the address where the company is registered, saying that I must appear for a fine to be imposed. To this day I have not gone anywhere and have not been handed anything. I'm preparing again for my little project soon and I don't want to make the same mistake. Can you have the company deleted or is there a better solution. The existing company does not match the new ideas I have either in name or activity, so I will most likely start a new one.
Thanks in advance!
Answer:
Hello,
In principle, you have the opportunity to register as a self-employed person. For this purpose, with the registration application, you will need to submit a diploma, certificate or some other document certifying your competence in the field in which you will be operating. You will need a license for the activity you mentioned if you want to issue any documents/certificate certifying the level of competence of the persons you train. Otherwise, obtaining a license is not mandatory.
If you are self-employed, you will owe 10% tax on the amount of income you receive, reduced by 25% of legally recognized expenses and the amount of social security contributions due. The insurance contributions themselves, in turn, are calculated on the amount of your received income, reduced by 25% of legally recognized expenses. The amount on which you are insured cannot be lower than the minimum insurance income (780.00 BGN/month for this year) and higher than the maximum insurance income (3400.00 BGN/month for this year).
If you register a new company in your name, you will again owe 10% tax, but on the amount of your realized profit (the income received, reduced by the expenses incurred related to the activity). If you, as an owner, want to use company funds for personal needs, you will owe 5% dividend tax. Again you will owe insurance, on an amount of your choice. As it cannot be lower than the minimum insurance income (BGN 780.00/month for this year) and higher than the maximum insurance income (BGN 3400.00/month for this year).
The income you received before registration as a self-employed person/company should be declared by submitting an annual tax return. The income itself will be taxed as Sole Trader income, which means insurance on all income received and 15% income tax less the insurance contributions due.
To work through a company, you do not need a certificate/diploma, nor do you need to hire a person. You, as the owner, can carry out activities.
The liquidation of a company - "deletion" is a process that will cost you time (between 8 and 12 months) and costs. At the entrance of this process, it will be found that you have omitted to submit declarations of inactivity over the years, which can lead to the imposition of fines (since the company has not carried out any activity and therefore has not evaded tax, you can get away with just with a prescription for submitting the necessary declarations for old periods).
It is not a problem for the already existing company to make changes in the circumstances (name, activity, address, etc.). Of course, there remains the possibility of a fine for late inactivity declarations. `
There is always an option in which you can find a new company and not touch the old one (with the idea that even if there are fines already imposed - they will become statute-barred). This new registration will be accompanied by additional costs for you and a second commitment (at least until the company is liquidated and does not cease to be a first commitment). Under current law, a declaration of inactivity needs to be filed and then nothing needs to be done or filed until that company is back in business. You can submit such a declaration for 2023 and even if some fines are imposed - wait for the expiration of the 5-year statute of limitations and for any fines to disappear.
We hope we have been helpful!
Greetings!
