As Ednolichnen trader can register only capable natural person resident in the Republic of Bulgaria, which person should systematically (by trade or profession) conduct business and transact or has set such a goal. Once happen registration of the individual - a sole trader in the commercial register, it becomes a commercial capacity which can create business to transact. And here comes the main difference with a single limited liability company. The sole proprietor of his business shall be liable to all the property of the individual - the owner. While one-man limited liability company, which type of company is a capital - responsible to the amount of paid-in capital, ie the property which is referred to as a legal entity . Single-member limited liability company may be formed by a natural or a legal person who provides their assets and become owner of its capital after its establishment, and its very foundation is needed statutes.      

     Another major difference is in the performance of any specific activities which, if exercised by a sole trader is required to issue a patent, while single member limited liability is not required. There is a difference between taxes owed and the two companies ET LTD. Sole proprietor is taxed as individual health and social security contributions and income tax , while single member limited liability due to income tax, which is 10% tax on dividends (aka distributed profit).     

    There is a significant difference and self-sufficiency in which a sole trader providing to the minimum wage, if it turns out that at the end of the year, his taxable income is - high, he will have to pay in addition a security gap on a monthly basis. In single member limited liability person who represents and manages the company, which also samoosiguryava the minimum threshold is not required to deposit additional contributions on this difference. It parades these few significant differences Ltd. is a company ever - preferred for establishing and starting a business.

Lawyer George Mitrev

Bringing a civil action

view more

Company Registration - such as SP, LTD and PLC

view more

"MITREV-G" is one of the first firms on the Bulgarian Real Estate Market

view more