Pension insurance through a company or as an individual

Pension insurance through a company or as an individual

I'm currently working on civil contracts but I'm interested in starting a business to sell handmade items but I don't know if this is the right approach for me as I don't know if it will take off. Can I open a pension fund through this company of mine? I have no knowledge in this area.
Thanks in advance!

pension insurance, handcrafting, civil contract, starting a company, accounting services, Varna, Ruse, Plovdiv, Burgas, Sofia
The income from the activity you describe can be declared both as an individual and as a company.
As an individual, you will owe 28% social security contributions on the amount of income you receive and 15% tax on the income you receive, less the social security contributions due. They are declared once by submitting an annual tax return for the income of natural persons.
As a company, you will again owe 28% insurance contributions, but calculated on an amount of your choice (not lower than the minimum insurance income for the country - BGN 933.00 at the moment and not higher than the maximum insurance income for the country - 3700 at the moment ). You will also owe 10% capital gains tax (income received after deducting business-related expenses) and 5% dividend tax (in cases where you decide to use the company's profits for personal purposes). Working through a company entails a higher administrative burden - submission of monthly and annual declarations related to the company's activities.

Which will be the most profitable way of working for you depends on the amount of income. We believe that with lower incomes, reporting income as an individual is more appropriate. In both cases, you owe insurance contributions, which means that you will have pension insurance.
We hope we have been helpful!

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