Accounting of international companies in Bulgaria

In today's globalized world, business knows no boundaries and companies are increasingly expanding beyond their traditional markets to explore new opportunities and achieve international success. However, this expansion also brings with it new challenges, one of which is managing complex financial and legal requirements that vary from country to country. In such a context, choosing the right accounting partner is crucial for the smooth operation and growth of the company. Elan Consulting is at the forefront of this evolution, providing comprehensive accounting services that meet the unique needs of international companies. We understand that the success of such a company requires precise knowledge of different legal systems and cultures, as well as the ability to navigate among complex international financial and tax regulations.

In addition, in times of global mobility, international companies often need the skills of talented specialists from different countries. In this context, the process of attracting and integrating foreign workers becomes a key part of the company's growth strategy. Elan Consulting provides valuable support in this process by facilitating the issuance of work permits and ensuring compliance with all relevant regulations. Our goal is to provide a comprehensive and integrated accounting solution that meets the specific needs of internationally developing companies. We understand that each company is unique, and we strive to offer a personalized approach to support and grow their business while addressing the challenges of the international environment.

1. The importance of specialized accounting for international companies: International companies face unique challenges in the field of accounting that require appropriate knowledge and experience. The accounting firm Elan Consulting has the specific skills needed to deal with complex international tax and accounting standards, ensuring effective management of your company's finances.
2. Understanding international tax laws and regulations: Elan Consulting has a thorough knowledge of international tax laws, which is essential to successfully conduct business globally. We provide up-to-date information and advice to ensure your company complies with all applicable tax requirements.
3. Optimization of tax liabilities: Our goal is to help your company optimize its tax obligations while complying with international and local tax laws. This includes identifying potential tax breaks and incentives that can reduce your organization's overall tax burden.
4. Management of financial resources: Effective management of financial resources is critical to the success of any international company. Elan Consulting provides end-to-end capital, cashflow and investment management solutions that help your company stay competitive on a global scale.
5. Specialized services for international transactions: International financial transactions can be complex, involving currency risks and regulatory requirements. Elan Consulting offers specialized services to manage these transactions, ensuring that your finances are secure and efficiently managed.
6. Support when issuing work permits to foreigners: Elan Consulting services are also expanding in the field of human resources, including assistance in the issuance of work permits to foreigners. This process is often complex and time-consuming, but we provide comprehensive support to make it easy for your overseas staff to get started quickly and smoothly.
7. Compliance with local and international standards: Elan Consulting ensures that your international company complies with both local and international norms and regulations. We are always up to date with the latest changes in legislation in order to be able to offer up-to-date and reliable accounting solutions.
8. Individual approach to each client: At Elan Consulting, we understand that every international company has its own unique needs and requirements. We offer customized accounting solutions that are specifically designed to meet the specific requirements of your business.
9. Consultancy and strategic planning: Our experienced team provides professional accounting advice and strategic planning that helps your company achieve its long-term financial goals. We work with you to develop strategies that improve the financial health and growth of your company.
10. Technological innovations in accounting: Elan Consulting uses the latest technological innovations in accounting, which allows more efficient and accurate management of your company's finances. This includes automated accounting systems that help reduce errors and increase efficiency.
11. Protection of financial information: The security of financial information is of paramount importance to us. Elan Consulting applies strict security measures to ensure that all of your company's financial data is protected from unauthorized access or disclosure.
12. Long-term partnership and support: By choosing Elan Consulting as your accounting partner, you receive not only quality accounting services, but also long-term support. We value every opportunity to build strong, lasting relationships with our customers, which is key to the success of your business.

In the dynamic world of international business, effective and accurate accounting is not just an obligation, but a critical element for the success of any business. At Elan Consulting, we understand this need and are committed to providing services that not only meet but exceed our clients' expectations. Our commitment to being at the forefront of accounting innovation and providing customized solutions is what makes us the ideal partner for international companies. From managing financial resources to navigating the complex procedures for issuing work permits to foreigners, we are here to help your business thrive in the global arena. Ultimately, choosing Elan Consulting means choosing a reliable and experienced accounting partner who understands the unique challenges and opportunities facing international companies. We are dedicated to your success and look forward to the opportunity to support and grow your international company in the future.

What are the peculiarities of accounting for international companies?

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Accounting for international companies is a complex process that requires compliance with numerous rules and standards both in Bulgaria and internationally. In the accounting of international companies, the financial statements must be prepared in accordance with the Bulgarian Accounting Standards (BSA) and the International Accounting Standards (IASs). This approach is important because it allows companies to cope with the complexities of modern business and ensure the transparency and reliability of the accounting information they provide.

The Bulgarian Accounting Standards provide a framework for the accounting of companies in Bulgaria. They are based on European Accounting Standards (ESS) and include requirements for the preparation and presentation of accounts. BSS combines traditional Bulgarian accounting practices with international standards to ensure fair and accurate presentation of financial information.

On the other hand, International Accounting Standards (IAS), developed by the International Accounting Standards Board (IASB), have been adopted in more than 120 countries around the world, including Bulgaria. They provide general principles and requirements for the preparation and presentation of accounting statements, which facilitates the comparison of financial information at the international level. IAS shall ensure transparency and reliability of accounting information by encouraging investors, creditors and other stakeholders to have confidence in the information provided.

The preparation of the accounting statements of international companies is carried out in several steps. First, companies must identify and classify the different types of transactions and events related to their activities. They must then use accounting principles and methods that are consistent with the IAS and IAS to record and process these transactions and events. This is followed by the preparation of the financial statements, including the balance sheet, the profit and loss account, the statement of changes in equity and the statement of cash flows.

For the accounting of international companies to be effective, they must follow accounting standards and ensure the accuracy and reliability of the information provided. It is important that companies have good internal control to ensure compliance with accounting standards and prevent errors and fraud in financial statements.

Also, international companies must have effective compliance control mechanisms to ensure that all divisions and subsidiaries follow the same accounting principles and requirements. This may include staff training, regular checks and audits, as well as the establishment of standardised procedures for reporting and presenting financial information.

Accounting of international companies according to Bulgarian and international accounting standards plays a key role in financial management and decision-making for their future activities. This process ensures transparency and reliability of accounting information, which is essential for the successful operation and development of international companies. Compliance with accounting standards not only facilitates financial reporting, but also increases the confidence of investors and other stakeholders.

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What are the types of work permits for foreigners in Bulgaria?

In the context of increasing globalization and international labor exchange, Bulgaria offers a variety of work permit options designed for foreigners who want to contribute to the economic and cultural wealth of the country. The types of permits include the EU Blue Card, the Single Residence and Work Permit and the Short-Term Employment Visa, each of which is adapted to different needs and circumstances.

EU Blue Card‍

The EU Blue Card in Bulgaria is an important tool for attracting highly qualified specialists from third countries outside the European Union. This permit is issued by the Migration Directorate and is valid for a period of up to five years, with the possibility of renewal. Recent amendments to the legislation include a simplified application procedure, the possibility of submitting documents electronically, as well as reduced deadlines for examining documents.

To apply for a Blue Card, foreigners must meet one of the following conditions:

• Completed higher education, documented with relevant certificates.
• Proven knowledge and skills comparable to higher education, for positions indicated in a list approved by the Minister of Labor and Social Policy.
• At least five years of professional experience at a level comparable to higher education for positions outside the specified list.

The applicant's employment contract must include a gross salary that is at least 1.5 times higher than the national average, according to the NSI, and an employment contract term of not less than six months. In addition, applicants must have a long-term D visa, another type of long-term residence permit in Bulgaria or international protection in the EU.

The application process includes the submission of an application by the employer or the foreigner, accompanied by a copy of the passport, criminal record, evidence of insured housing, justification of the request from the employer, documents on education and work experience, a statement from the employer about working conditions, a copy of the employment contract, the job description, document on the exercise of a profession and medical insurance.

After submitting the application, the Migration Directorate forwards the documents to the Employment Agency and the State Agency for National Security for an opinion. Upon a positive opinion, the applicant receives a message, and then submits an application for a visa D. After entering Bulgaria, the foreigner must apply to the Migration Directorate for the final issuance of the Blue Card.

In the event of a change of employer or loss of job, the Blue Card holder must follow the established procedures by registering as unemployed or submitting an application for a change of employer.

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Visa for seasonal employment:

Seasonal employment of up to 90 days is an opportunity granted to foreigners from third countries, outside the European Union, who hold a short-stay visa type “C” or have the right to visa-free residence in Bulgaria. This gives employers the opportunity to hire international staff for seasonal work, which is limited to a certain period of time and is linked to specific sectors, as approved by the Minister of Labor and Social Policy.

Seasonal work is usually associated with agriculture, hospitality and restaurant business, where labor needs vary with the season. For registration of seasonal employment, the employer must submit a declaration to the Employment Agency, which includes information on working conditions and wages, provided housing and transportation costs for the seasonal worker.

Seasonal workers may not change their employer during the period of seasonal employment, nor enter into a second employment contract with another employer. Also, the law does not provide for the possibility of extending the period of registered seasonal employment.

For the registration of seasonal work, the employer must provide suitable housing and cover the transportation costs of the seasonal worker from and to the place of origin. Registration with the Employment Agency is carried out before the start of employment of the foreigner.

The documents required for registration include a sample declaration, information on insurance and taxation, a copy of the fixed-term employment contract certified by the employer, as well as other accompanying documents necessary to confirm seasonal employment. Employment can begin no earlier than 10 days after submitting the documents.

It is important to note that the employer is obliged to notify the Executive Agency “General Labor Inspectorate” about the concluded employment contract and notify foreigners about the start of work within 7 days of their arrival.

This type of visa and registration provides an opportunity for flexible and efficient management of seasonal labor, while ensuring the protection of the rights and working conditions of foreigners.

Single residence and work permit:

The Single Residence and Work Permit in Bulgaria is a key instrument for regulating the residence and work of foreigners from third countries outside the European Union. This permit facilitates the access of skilled workers to the Bulgarian labour market, while ensuring compliance with national norms and regulations.

The permit is issued by the Directorate “Migration” or the “Migration” sectors of the regional directorates of the Ministry of Interior and isvalid for a period of three years, or for the term of the employment contract, if shorter.It allows foreigners to work in positions that do not require Bulgarian citizenship, as long as they do not exceed a certain percentage of the employed workers for the respective employer.

The application for the “Unified Residence and Work Permit” requires the submission of a sample application, which must include information such as a copy of the alien's passport, criminal record, evidence of insured housing, as well as a detailed justification by the employer for the alien's employment. This justification must include information about published job advertisements, the reasons for refusing to hire local workers and documentation proving the qualifications of the foreigner.

Also, the employer must provide information on the average number of employed workers, including various categories of foreigners and Bulgarian citizens. It is important to respect the conditions of work and pay, and they should not be less favorable than those for Bulgarian citizens.

After submitting the application, the Migration Directorate forwards the documents to the State Agency for National Security and the Employment Agency for an opinion. In case of a positive opinion, the employer and the foreigner receive a message about the right of the foreigner to start working in Bulgaria.

A foreigner applying for a “Single Residence and Work Permit” must submit an application for a D visa at the Bulgarian Consulate in their country, and then appear in person at the Migration Directorate upon arrival in Bulgaria. The permit is issued by the Director of the Migration Directorate within three days after the submission of the necessary documents.

The procedure for issuing the permit should not take more than two months, and in case of complexity, the period may be extended by another two months. The employer is obliged to notify the Migration Directorate of any change affecting the conditions of admission of the foreigner and the termination of the employment relationship.

It is important to note that this procedure is in line with Bulgaria's aspiration to create a favorable environment for attracting international specialists who can contribute to the economic and social development of the country.

Procedure for hiring foreign workers in Bulgaria

The process of hiring foreigners in Bulgaria requires careful compliance with legal frameworks and procedures. Employers wishing to hire international staff must initially obtain approval from the Employment Agency. This includes submitting documentation that proves the need for a foreign worker and confirms that this will not harm the Bulgarian labor market. After obtaining a Work Permit, the applicant from a third country must apply for the relevant visa at the Bulgarian consulate or embassy in his or her home country.

For the EU Blue Card and the Single Residence and Work Permit, the procedure involves submitting additional documents to the Migration Directorate at the Ministry of Interior, which certify the qualifications and legal basis for hiring the foreigner. This includes, but is not limited to, accounting documents certifying the percentage of employed Bulgarian nationals in the company, justification of the request, a number of declarations under the Labour Migration and Labour Mobility Act, as well as a copy of the employment contract and a certificate of registration of the employer.

In conclusion, Bulgaria offers a variety of employment opportunities for foreign workers, which are crucial for the country's global and multinational development. It is important that employers understand and strictly follow all procedures and requirements set by Bulgarian legislation and the Employment Agency in order to ensure the successful and legal recruitment of international talent.

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