Managment and control Agreement (CMA) and partner in OOD

Managment and control Agreement (CMA)

and partner in OOD  

 

Question 1:

Hello,
I have a question about securing. In 2016, we established a trading company Ltd. two - a manager with a management and control contract (CSS) and a partner (it participates only with capital without doing business). So far we have been providing this company. In 2017 we plan to purchase agricultural land and set up a business as a farmer. My question is what is needed to make this initiative right? Is it necessary after the registration, as a farmer to start insurance also as a farmer (except as a partner and manager of the trade company) or it is enough just to file a declaration in the directorate of the NRA at the registration of the company that we start such activity And to continue our insurances through the trading company? Thank you in advance.
Greetings.

 

Answer 1:

Hello,

About your insurance in 2016

A partner who is only involved in capital without being in business has no obligation to make contributions as self-insured person (SOL) - a partner. It is obligatory if it participates in the activity of the company. (But that does not mean that it can not be ensured this way.)

The manager under a management and control contract (CMS) has two options for securing. If his / her contract (CTR) is paid, it shall be treated as a labor contract in respect of insurance and taxes and the deductions made thereon shall not be less than the first-person insurance threshold for the NACE Code For minimum insurance thresholds. If the contract stipulates that the manager will not receive remuneration for the work performed, he / she shall be obliged to provide himself / herself as a self-insured person (SCO) on an amount not less than the minimum insurance threshold for self-insured person СОЛ) (420 BGN for 2016 and 460 BGN for 2017)

About 2017

f the company purchases the land and starts operating as a farmer, it is not necessary to provide any insurance other than that described above.

АIf the partners are registered as natural persons - a farmer (PA):

A) the partners in OOD, if they are insured as self-insured persons (SAL) in the OOD, do not need to apply and be provided as a farmer.

B) the partners are not insured as a SAL in the company (the manager is provided with a share price with a remuneration and the other partner is not provided as a SAL - does not act in OOD), then the natural persons have to apply to the NRA for starting the insurance As a farmer (PA).

We hope we have been useful.

Best regards.

 

Question 2:

Hello,

Thanks for the comprehensive answers and variations you have shared.

Here I will add information about our case. If I understand correctly this will not change our current sata. Here are the details:

The manager has a HK, I as a partner only participate with 50% of the capital. The manager did not explicitly mention that he was paid for his work. He works elsewhere on the TD and receives remuneration above the maximum insurance threshold. In this case, it is not obliged to import social insurance in the company. Please correct me if I'm wrong.

After buying the agricultural land, the status will not change. We do not see the need and need to register as individual individuals - PP. The land will be bought by the company and will be its property. Through it we will be doing business as a PA.

Once again, thanks for the quick answer. We appreciate the quality of the service you provide and we will be happy to hear future questions about working with you.

All the best.

 

Answer 2:

Hello again,

You are quite right for the manager with the HCP.

Thanks for the review of our work.

Success in the venture.

Best regards.