Freelance - Self-employed registration
Ecovis | 3 July 2024
The practice of freelancing is an extremely popular way of exercising work activity in modern society, better known as freelance profession. It provides flexibility and independence, which attracts more and more people. Self-employed registration is an important stage in this process, which involves several steps and requirements that must be met. In the following lines of this article of Ecovis Bulgaria we will present detailed and up-to-date information.
Registration of self-employed freelancers
Applicants for this service are those who are self-insured - natural persons who are obliged to pay social security contributions on their own behalf (Article 5(2) of the CSR).
This includes persons referred to in Art. 3, items 1-4 of the CSR - sole traders, partners in companies, owners of limited liability companies, members of unincorporated companies, persons carrying out commercial activity, farmers who have chosen this method of taxation (according to Art. 1 of the Ordinance on Social Insurance of Self-Employed Persons).
Submission deadline
The documents must be submitted within 7 days of the commencement, interruption, resumption or cessation of the employment activity for which the person is registered as self-employed.
If the declaration is not submitted within this period, the person will be insured only for disability due to general illness, old age and death. The type of insurance may be changed each year by declaration under par. 3 of the NOOSLGBHRML from 1 to 31 January. If the activity is interrupted and resumed during the year, the type of insurance may not be changed.
Registration with the National Revenue Agency of persons with a free profession
Once the free profession is chosen, registration with the National Revenue Agency (NRA) follows. This involves submitting an application to commence business (QA 5). The application can be submitted in person, by post or online using the e-signature.
According to Article 40 para. 40(1) of the Social Insurance Code, all self-employed persons are obliged to register with the NRA within 7 days of commencing business. It is advisable to entrust the activity to experts in the field of accounting and auditing services.
Documents and registration requirements
The registration process for self-employed persons requires the submission of various documents. Here are the main requirements and necessary documents:
Declaration of registration of a self-insured person
The main document to be submitted is an application for registration as a self-employed person. This document includes information on the person's personal data, the chosen freelance profession and the type of insurance.
Identity card and copy
An identity card and a copy of the identity card must be presented at the time of application.
Evidence of qualification
Depending on the chosen freelance profession, documents proving the person's qualifications and experience may be required. This may include diplomas, certificates and similar documents.
Sanctions for self-employed persons
Persons who fail to submit a declaration in due time shall be punished with a fine of BGN 50 to BGN 500 for individuals who are not traders or with a pecuniary sanction of BGN 500 to BGN 5000 for sole traders and legal entities.
In case of repeated violation, the fine shall be from BGN 500 to BGN 2000 or a pecuniary sanction of BGN 1000 for each case, but not more than BGN 10 000.
The acts for violations shall be drawn up by the NRA and the penalty decrees shall be issued by the Executive Director of the NRA or a person authorised by him. Violations are established, penalty decrees are issued, appealed and enforced according to the Law on Administrative Offences and Penalties.
Benefits of registering as a self-employed self-employed person
Social security for the self-employed
Registration provides social security, with the self-employed becoming entitled to a pension and health insurance. This is important to ensure financial stability in the future.
Legitimacy
Registration gives legitimacy to the activity of self-employed persons. This is particularly important when dealing with clients and partners who require statutory services.
Opportunities for development
Registration opens up opportunities to participate in various programs and projects that are only available to registered individuals. This includes the possibility of receiving funding and grants.
The application of a free profession
Freelancing provides many opportunities and challenges. The registration of self-employed persons is an important stage that ensures social security and legitimacy of the activity.
Compliance with all legal requirements and regular filing of returns are essential to the successful practice of the profession. With the right preparation and attention to detail, self-employed workers can reap all the benefits that this form of employment provides.
Freelance and documentation
For any person practicing a particular business, a cash register is necessary to record all receipts and issue receipts. This is part of the legal requirements for accountability and transparency of financial transactions. One of the advantages of exercising a freelance profession is that Art. 4, item 8 of Regulation N-18 (on cash registers) exempts freelancers from the obligation to issue receipts in cases where they take cash/card from their clients.
However, Article 9(2) requires persons, in case they do not receive from the payer of the income a "statement of amounts paid", to issue to their client a document containing the particulars referred to in Article 6(2) of the Regulation. 3 of the Accountancy Act.
These are:
- name and number of the document containing only Arabic numerals;
- date of issue;
- name of the company;
- the object, nature and value of the business transaction;
- compiler's name and signature.