Accounting of hairdressing and beauty salon in Bulgaria

Starting a beauty or hairdressing salon in Bulgaria is associated with a number of administrative and regulatory requirements that are essential for the successful start and management of the business. Customers often ask themselves: “What are the requirements for opening a hair salon?” or “What room do I need for a beauty salon?” These issues are key, since the registration of a hairdressing or manicure salon requires compliance with specific regulations, such as the requirements of the RFI and the status of the room.

An important aspect that often excites future owners is related to the choice of the legal form for the company. Questions like “What company should I register for a hair salon?” and “What is the cost of opening such a business?” are common, with the choice of an appropriate form of organization being essential to the legal and tax status of the business. Depending on the number of employees, the volume of financial operations and the planned revenues, there are various options that the accounting and consulting firm Elan Consulting can offer.

Opening a salon, whether it is a cosmetic, hairdressing or manicure salon, also requires the submission of a number of documents, including registration with the RZI. Many customers ask: “What documents are needed for registration of a manicure salon?” and “What do the RZI requirements for beauty and hairdressing salons include?” Compliance with these requirements is mandatory, as they ensure that the premises meet hygiene and safety standards.

Another important element that should not be underestimated is the organization of the opening of the salon. Often, customers are interested in how to attract their first customers, asking: “How to draw up an invitation to open a salon?” or “What marketing approaches should I use to successfully start a business?” The consulting services of Elan Consulting cover these issues, offering individual solutions tailored to the specific needs of the business.

An important aspect in managing this type of business is also keeping accounting. The accounting services for salons provided by Elan Consulting are tailored to the peculiarities of the cosmetics industry. These include tax and insurance obligations, as well as specific requirements for invoicing and reporting income and expenses. Customers often ask: “What is the tax burden for a hair salon?” or “Do I need to register for VAT when reaching a certain turnover?” The Elan Consulting team is available to provide answers and solutions to these important questions that will help to successfully manage your salon.

Also, if the salon plans to hire staff, including foreigners, there are specific requirements and procedures for hiring workers, such as applying for a work visa. Clients are often interested in the details related to hiring foreign employees, asking: “How to hire foreigners in a hair salon in Bulgaria?” The Elan Consulting team offers full support in the process of registration and document processing.

In other words, opening a hairdressing or beauty salon involves a complex of legal, administrative and accounting issues that must be carefully considered and addressed. Elan Consulting provides full assistance, including assistance in company registration, tax advice, registration in RZI and administrative support in hiring staff, helping its clients not only in Sofia, but also in Burgas, Nessebar, Sunny Beach and the whole of Bulgaria.

What company should I register for a hairdressing salon in Bulgaria?

Choosing the right legal form for registering a hairdressing salon is a key factor for the successful start and management of a business. Many clients of Elan Consulting ask the question “What company should I register for a hair salon?” This is an important issue that depends on a number of factors such as the volume of activity, the number of employees, expansion plans, financial goals and the level of responsibility that the owner is willing to assume.

The most common legal forms that are used to register small and medium-sized businesses such as hairdressing salons are sole proprietorship (ET) and limited liability company (Ltd or EOOD).

1. Sole proprietor (ET):
This form is popular among self-employed people who plan to run a small salon without hiring many employees. ET is a preferred form when the owner plans to work alone or with a small team. It is important to bear in mind that with ET, the owner is fully responsible for the obligations of the company with his personal property. This can be risky in case of financial difficulties, but at the same time the registration of ET is simpler and involves lower initial costs.

However, for managers of hairdressing salons, beauty salons and manicure salons who register as sole traders, it is very important to know that this legal form obliges them by law to insure themselves on their real income from commercial activity and does not give them the opportunity to choose the amount of insurance they pay, according to the minimum and maximum insurance threshold!

2. Limited Liability Company (Ltd or EOOD):
For larger projects or when planning a business expansion, the registration of an LLC or EOOD is the preferred choice. In the case of an EOOD, the owner is the only participant, while in the case of an LLC there can be more than one partner. The advantage of these forms is that the responsibility of the owners is limited to the amount of capital of the company, which protects the personal property of the owner in case of financial difficulties.

Many of our clients often ask “Which form is better for me — ET or Ltd?” The answer to this question depends on the volume of activity, the number of employees hired and the long-term goals of the business. If you plan to hire a team of hairdressers and beauticians, an LLC or an EOOD is the better option as it offers better legal protection and growth opportunities. An LLC is also better suited if you plan to work with partners or co-investors, as it allows flexibility in managing and distributing profits.

An important issue when choosing a legal form is also taxation. For example, in the case of ET, the owner's income is subject to personal income tax (in the manner of the ZDDFL), while in the case of a Ltd or an EOOD the company is subject to corporate tax (in the manner of the ZDFL). Many of our clients are interested in what the tax burden will be for them and which regime is more profitable. Depending on the annual income and expenses, one type of company may be more optimal than another in terms of taxes and insurance.

If you expect that the turnover of your salon will exceed BGN 100,000 for the last 12 months, it is mandatory to register under the Value Added Tax Act (VAT). Some owners choose voluntary VAT registration even before reaching this threshold, especially if they will have significant equipment and material costs that can be deducted. Therefore, the question “Do I need to register for VAT when starting a hairdressing salon?” is of great importance and our team can offer a detailed consultation on this topic.

If you plan to hire employees, including foreigners, it is necessary to comply with the labor and social security legislation in Bulgaria. Questions like “What are the requirements for hiring staff?” and “What insurance do I have to pay for my workers?” are common among customers who start a business in the cosmetic industry. The Elan Consulting team can help you with the entire process of personnel registration in the NRA, as well as with all the necessary documents for the conclusion of employment contracts.

The launch of a hairdressing salonalso requires the issuance of various permits and certificates, including from the RFI. The question “What documents are needed for registration of a hairdressing salon in RZI?” is key to starting a legal business. This process involves compliance with sanitary and hygienic requirements and the submission of the necessary documents for the legalization of the premises, which is an important part of the preparation of the business.

What room do I need for a beauty salon?

Choosing a suitable room for a beauty salon is essential for the success of a business, as it must meet a number of regulatory requirements. Often our clients ask us: “What room do I need for a beauty salon?” and the answer to this question is complex, involving requirements that are regulated both in the sanitary norms of the RZI and in the normative acts related to the design of the territory.

The first and most important condition is that the room meets the hygienic and sanitary-epidemiological requirements, which are regulated in the Law on Health and the regulations of the Ministry of Health. These requirements include the proper distribution of work areas, storage of cosmetic products, as well as the presence of a ventilation system to provide fresh air in the premises. It is also important to comply with the requirements for natural lighting and heating, as they directly affect the quality of services and the comfort of customers.

The room should also have clearly delimited areas for the different activities to be carried out - work areas for cosmetic procedures, a waiting area for clients, as well as sanitary facilities that are easily accessible to both staff and customers. According to the provisions of The Law on Spatial Planning(ZUT), the status of the premises must be in accordance with its purpose — that is, it must be declared as a commercial or service establishment. If the premises were used for another purpose, it will be necessary to go through a procedure for changing the status, which is regulated in the order of SOOT.

From the point of view of sanitary requirements, Ordinance №15 on health requirements for beauty salonsand other personal service objects stipulates that each room for cosmetic services must be equipped with sinks with running hot and cold water, sanitary facilities for staff and customers, as well as specialized containers for collecting and storing hazardous waste. This also includes a strict separation of areas for working with customers from storage areas for preparations and products.

It is also important to note that the size of the room should be commensurate with the volume of activity and the number of employees. For beauty salons that offer a variety of procedures, a larger space is recommended, which allows the free placement of equipment and provides comfort for customers. According to the requirements of The Health Act, the minimum area of the workplace should be sufficient to ensure the trouble-free carrying out of cosmetic procedures, observing safety and hygiene rules.

Along with hygiene requirements, there are also requirements for the accessibility of the room. According to The Law on Persons with Disabilities, any commercial premises, including beauty salons, must provide easy access for persons with reduced mobility, which includes ramps or lifts if the salon is located on a higher floor. Failure to comply with these requirements may result in penalties, so it is important to consult with the competent authorities during the selection of a premises.