What are the basic steps for registering a transport company in Bulgaria?

Registration of a transport company in Bulgaria involves several basic steps. First, you need to choose the legal form of the company, most often using an LLC (limited liability company) or an EOOD (sole proprietorship with limited liability). After that, it is necessary to prepare and submit constituent documents to the Commercial Register. The documents include a Memorandum of Association, an application for registration and a certificate of uniqueness of the company name. After registration in the Commercial Register, the company must also register with the NRA for tax purposes by submitting an application for VAT registration if the turnover exceeds the legally established thresholds. The final step is to obtain the necessary licenses for transport activities, which includes submitting an application and providing documents on the financial condition and technical condition of vehicles.

How are posting expenses for drivers of transport companies calculated and accounted for?

Mission expenses for drivers in transport companies are an important aspect of company management. These expenses include daily allowances, food, accommodation and other expenses related to the business trip. According to the Ordinance on business trips and specializations abroad, daily allowances are determined according to the duration of the business trip and the country of residence. Firms must keep detailed records of all posting expenses, including orders for business trips, reporting forms, and invoices for expenses incurred. The accounting of these expenses is carried out in accordance with the National Accounting Standards (NSS) and the Corporate Income Tax Act (CPA).

What are the requirements for the technical condition of vehicles in transport companies?

To ensure the safety of vehicles and their compliance with regulatory requirements, transport companies must regularly carry out technical inspections and maintenance of their vehicles. According to the Law on Road Traffic and the Ordinance on Periodic Inspections for Checking the Technical Condition of Road Vehicles, vehicles must undergo periodic technical inspections in licensed repair shops. Inspections include checking the main systems and components of the vehicle, such as the braking system, lights, tires and emission standards. Companies must maintain up-to-date documentation of all technical inspections and repairs to ensure that their vehicles comply with safety and environmental requirements.

Accounting and registration of a transport company in Bulgaria

Elan Consulting is your reliable partner for accounting and consulting. In this article we will examine in detail the process of accounting and registration of a transport company in Bulgaria. Whether you are a newly established business or an already operating transport company, our expert services will help you navigate the complex procedures and requirements related to accounting, licensing and paperwork.

Our customers often ask:

“What are the requirements for obtaining a license for the transport of goods up to 3.5 tons?”
“How can I sell a transport company with a license?”
“What documents are needed to issue a license for international carriage of goods?”
“How is an international transport license issued?”

In “Elan Consulting” we provide full assistance for registration of transport companies, including management of all necessary documents and processes. Our accounting services for forwarding and transport companies are designed to ensure transparency and efficiency in your business. We also offer competitive prices for accounting services for 2024, which you can find in our current offers.

Many of our clients are also interested in the management of transport companies, including how to achieve maximum profit and efficiency. Questions like “How do I run a transport company with buses?” and “What is the cost of accounting of a transport company?” are common and we are here to provide you with answers and solutions.

Our services cover not only Sofia, but also Burgas, Pomorie, Karnobat, Sunny Beach, Aytos, Nessebar, Sozopol, Primorsko and the whole of Bulgaria. In this article, we will consider in detail all aspects of registration and management of a transport company, while providing clear and accurate answers to your questions.

Contact Elan Consulting today to get expert assistance and start your transport business with confidence and professionalism.

What are the features and requirements for registering a transport company in Bulgaria?

Registration of a transport company in Bulgaria requires the implementation of several important steps, which are described in detail in the relevant legal regulations. The first step is the choice of the legal form of the company, the most commonly preferred forms being a limited liability company (LLC) or a sole proprietorship limited liability company (EOOD), according to the provisions of the Commercial Act (TC).

Once the legal form has been chosen, the necessary documents are prepared for entry in the Commercial Register and the Register of Non-Profit Legal Entities (ZTRRULNC). This includes a constituent act or contract, declarations under Art. 141, para. 8 and Art. 142 of the Commercial Law, an application for registration, as well as a number of other documents, depending on the specific case. The Memorandum of Association must contain information such as the company name, registered office, subject of activity and capital of the company (art. 14 TC), as well as information on the rights of the founder, owners of capital, manager and commercial director.

After registration in the Commercial Register, the company must also register with the National Revenue Agency (NRA) for tax purposes. Depending on the turnover of the company, registration under the Value Added Tax Act (VAT) may be required. An application for VAT registration is submitted upon reaching a certain threshold of taxable turnover (Art. 96, para. 1 VAT), if desired, as well as when providing international transport or forwarding services within the EU.

In order for the transport company to carry out cargo transportation activities, it is necessary to obtain a license for transport activities. According to the Road Transport Act (CAP), licensing is regulated by different requirements depending on the type of transport. For the carriage of goods up to 3.5 tons or with a maximum permissible mass of up to 6 tons, a license and registration certificate are not required, unless otherwise provided for in international treaties (Article 6, paragraph 3, item 1 and item 1). 2 ZAP).

Additional permits are required for international transport. According to art. 18, para. 1 ZAP, license for international transport includes a certificate of financial condition, certificates of technical condition of vehicles and documents proving the qualifications of the manager of the transport activity. A certificate of absence of tax and insurance obligations is also required.

Once all the legal requirements have been met and the necessary documents have been submitted, the registration of the company in the Commercial Register usually takes about 7 days. The management of a transport company also includes compliance with all regulatory requirements and maintenance of the necessary licenses and permits to carry out the activity.

In addition, the firm must provide adequate accounting services, which include bookkeeping, tax planning, and filing the necessary returns and reports to the NRA. According to the Accounting Act, all legal entities must maintain up-to-date and accurate accounting.

When should a transport company register for VAT in Bulgaria?

Every transport company in Bulgaria must register for VAT in several main cases, which are regulated in the Law on Value Added Tax (VAT). Important points for registration include reaching a certain taxable turnover, making intra-community acquisitions and voluntary registration.

Any transport company that reaches a taxable turnover of BGN 100,000 for a period not longer than the last 12 consecutive months is obliged to register for VAT. According to the law, from January 1, 2025, the threshold will be increased to BGN 166,000 (Art. 96, para. 1 ZDDS). Taxable turnover includes all supplies of goods and services that are taxable or exempt with the right to tax credit. The application for registration must be submitted to the National Revenue Agency (NRA) within 7 days after the end of the tax period during which this turnover was reached or exceeded (Art. 96, para. 3 ZDDS).

In case of intra-Community acquisitions of goods worth more than BGN 20,000 for the calendar year, the transport company must also register for VAT (Art. 99, para. 2 ZDDS). This requirement applies when the company acquires goods from other EU Member States. The application for registration in this case must be submitted no later than 7 days before the date of occurrence of the tax event, whereby the total value of the acquisitions exceeds BGN 20,000.

For the international transport of goods, transportation from a place in the territory of the country to the territory of a third country or vice versa, as well as between two places on the territory of the country as part of such transportation, is taxable at a zero rate (Art. 30, para. 1 ZDDS). Forwarding, courier and postal services in connection with the international transport of goods are also treated as international transport services (Art. 30 para. 2 ZDDS).

Voluntary VAT registration is possible for any taxable person who has not reached the threshold for compulsory registration. According to Art. 100 VAT, any transport company can choose to register voluntarily in order to recover the tax credit for expenses incurred and improve its competitiveness.

Compulsory registration also applies to persons who supply services with a place of performance in another Member State, for which the tax is payable by the recipient (Article 97a of the VAT). Companies must submit an application for VAT registration no later than 7 days before the date on which the delivery tax becomes chargeable.

In practice, the registration of a transport company under VAT in Bulgaria takes about 14 days, after submitting the necessary documents and checking by the NRA. In order to avoid penalties and complications, it is important for the company to monitor its financial indicators and submit an application for registration in accordance with the requirements of the ZVAT.

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