Starting an online business in Bulgaria requires understanding a number of legal aspects. Here are some key points to consider:
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Choosing a Legal Form:
- Sole Proprietorship: The easiest to register but with unlimited liability for the owner.
- Limited Liability Company: A more complex structure with limited liability for the owners.
- Joint Stock Company: The most complex structure, suitable for larger businesses requiring a minimum capital of BGN 50,000.
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Registration:
- Commercial Register: Mandatory for sole proprietorships, limited liability companies, and joint stock companies.
- VAT Registration: Mandatory for businesses with an annual turnover of BGN 100,000 or more.
- Registration of the online store with the National Revenue Agency: Required except in cases where payments are accepted only by bank transfer or postal money order.
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Licenses and Permits:
- Depending on the type of activity, licenses or permits may be required from various institutions.
- For example, an online store selling food products requires registration with the Bulgarian Food Safety Agency.
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Data Protection:
- Compliance with Regulation (EU) 2016/679 (GDPR), the Personal Data Protection Act, and other relevant legislation.
- Creation of a privacy policy, cookie policy, and other documents governing the lawful processing of personal data.
- Ensuring and documenting a valid legal basis for processing customer data.
- Implementing technical and organizational measures to protect data.
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Intellectual Property:
- Trademark registration: Protection of your business name and logo.
- Copyright protection: Protection of your original digital content and other aspects related to your online business.
- Combating counterfeits: Protection of your product from imitations.
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Contracts:
- Terms of Use: Define the rules for using your website or online platform. Compliance with the Electronic Commerce Act.
- Delivery Contract: Define the terms of delivery of products or services.
- Confidentiality Agreement: Protection of sensitive information shared with clients or partners.
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Taxation:
- Corporate income tax: 10% of the company’s profit.
- Value-added tax (VAT): 20% on the sale of goods and services.
- Income taxes: For sole proprietors and for shareholders/partners/managers of limited liability companies and joint stock companies.
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Accounting:
- Keeping accounts: Mandatory for all companies.
- Filing tax returns and other accounting documents: Within the deadlines specified in the applicable regulations.
- Submitting an annual report to the National Statistical Institute for statistical purposes: Within the deadlines specified in the applicable regulations.
- Retention of accounting documents: Within the statutory time limits.
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Labor Law:
- Compliance with labor legislation: When hiring employees.
- Employment contracts: Define the terms of employment.
- Social security: Mandatory for employers and employees.
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Consumer Protection:
- Compliance with the Consumer Protection Act, the Act on the Provision of Digital Content and Digital Services and the Sale of Goods, and other regulations applicable to the activities of the online store.
- Providing clear and accurate information about products and services.
- Right of withdrawal from purchase.
- Warranties and complaints.
- Entering into an agreement with a bank to integrate a virtual POS terminal (if you wish to accept electronic payments).
Velinov and Partners consulting firm can provide you with full legal services and advice on every aspect of creating an online business and support you at every step of its management.
